In today’s economy, managing finances can be a daunting task for many. With the rise in inflation and the cost of living, it’s not unusual for people to take on extra debt. To combat this, BNPL (Buy Now Pay Later) schemes have emerged as an innovative way to shop and pay. BNPL allows consumers to break down their payments into small instalments and spreads the cost of their purchases over a certain amount of time. This concept has allowed consumers to shop and pay in a way that suits their budget, making it a popular go-to option for many. Here, we will discuss what BNPL is, how it works, the types of credit ratings it affects, and how to add your Bajaj Finserv Card to Amazon.
What is BNPL, and how does it work?
BNPL is a financing option that allows you to buy the things you need without having to pay for them upfront. Instead, you make instalment payments over a period of time until the total cost of the item or items is paid in full. This scheme avoids a ‘quick fix’ approach to personal finance and helps customers to plan their expenses wisely. BNPL isn’t just limited to brick-and-mortar stores; it’s now available at online retailers such as Amazon. The service enables shoppers to pay off their online purchases over time, either interest-free or at a low-interest rate.
Types of Credit Rating
BNPL schemes affect credit ratings differently depending on how it’s executed. Credit rating is a number calculated by credit bureaus that represent an individual’s creditworthiness or ability to repay their debts. It allows financial institutions to evaluate the risk involved in lending money to an individual. Therefore, it’s essential to understand that accepting BNPL agreements can impact your credit score. Here are the various types of credit rating:
- Soft Credit Check: This involves a slight rating check that doesn’t impact the credit rating.
- Hard Credit Check: This process entails a fee. The lender checks your credit report to determine if you’re eligible for credit.
- Missed Payments: This can affect your credit ratings, as the credit reporting agencies will be notified of your missed payments.
It’s advisable to research BNPL agreements before agreeing to the terms and conditions. Furthermore, try to avoid using BNPL schemes for non-essential purchases. However, BNPL payments could be ideal for significant investments such as cars or property, giving the customer more time to save and improve their credit rating.
How to Add Bajaj Finserv Card in Amazon
Bajaj Finserv, a non-banking financial company, is one of the growing lenders offering BNPL schemes. They have introduced an easy online application process to get an EMI card, which gives discounts at stores while using the card to pay for things. One landmark feature is that you can use your EMI card with Amazon too. Here is a step-by-step guide on how to add the card to your Amazon account:
- Access the Amazon website and sign in to your account.
- Click on ‘Your Account’ and scroll down till you see ‘Payment Options.’
- On the screen’s left side, select ‘Add Payment Methods’ and click on the ‘Add a Credit/Debit Card.’
- Input all the necessary details required in the form. There will be fields for the card name, number, expiry date, and CVV code.
- Once done with inputting the data, press ‘Next’ to proceed to the next screen.
- After confirming the details, click on ‘Add your Card’. A pop-up will appear asking for the OTP sent to your mobile number.
- On the last screen, enter the OTP received, and all done, your card would have successfully been added to your Amazon account, and you can now use it for purchases.
BNPL schemes are an excellent way for consumers to manage their finances and spread the cost of their purchases over a period. Still, it’s essential to read and understand the terms and conditions before proceeding. It’s also essential to consider your credit rating before opting for a BNPL agreement. Once you understand what you’re signing up for, BNPL can be an effective way to purchase high-value items without breaking the bank. Furthermore, adding your Bajaj Finserv Card to Amazon allows you to take advantage of BNPL agreements while shopping on the popular online platform.