Buy now, pay later services are often marketed as harmless—an easy way to split payments without the pressure of traditional credit cards. For many Filipinos, especially first-time borrowers, BNPL feels like a low-risk entry point into credit.
But according to Registered Financial Planner Rosemarie Gases, the long-term consequences of BNPL are often misunderstood—and underestimated.
“People think BNPL exists outside the credit system,” Gases says. “But your behavior today can shape your financial opportunities years from now.”
BNPL and Your Financial Reputation
Gases explains that whether or not BNPL activity appears directly on a credit report, it still influences a person’s financial profile.
“Payment behavior always leaves a trail,” she says. “Missed payments, defaults, or patterns of overborrowing affect how lenders assess risk—even if consumers don’t see it immediately.”
She adds that many users treat BNPL casually because it doesn’t feel like a loan.
“That’s where the danger is,” Gases explains. “When people don’t take a loan seriously, they’re more likely to miss payments or stack multiple obligations.”
When Easy Credit Blocks Bigger Goals
One of Gases’ biggest concerns is how BNPL affects future borrowing.
“People don’t realize that lenders look at your overall financial behavior,” she says. “If your cash flow is already tied up in multiple installments, that reduces your capacity to qualify for larger loans.”
This matters when applying for major financial milestones.
“Home loans, car loans, and business loans require clean cash flow and discipline,” Gases explains. “BNPL commitments—even small ones—can weaken your profile.”
She warns that many people discover this only when it’s too late.
“They apply for a loan and wonder why they were denied or offered higher interest. They don’t connect it to years of casual borrowing.”
The Problem of Normalized Borrowing
Gases says BNPL also changes how people relate to credit itself.
“When borrowing becomes normal for everyday purchases, people stop distinguishing between needs and wants,” she says. “Credit gets used for convenience, not necessity.”
Over time, this weakens financial judgment.
“If every purchase is financed, people lose the habit of asking whether they can afford something without borrowing.”
Why First-Time Borrowers Are Most at Risk
Younger consumers are particularly vulnerable, Gases says.
“Many millennials and Gen Z users experience credit for the first time through BNPL,” she explains. “If their first experience with borrowing lacks discipline, that behavior often carries forward.”
Instead of building a strong financial track record, they build a fragile one.
“They don’t learn repayment discipline gradually. They learn it under pressure.”
Small Misses, Big Consequences
Gases emphasizes that the damage often comes from small lapses.
“People think missing one installment is harmless,” she says. “But repeated small misses signal risk to lenders.”
She adds that financial systems are designed to reward consistency.
“Reliability matters more than income in many cases. BNPL makes it easy to be inconsistent.”
A Tool That Requires Maturity
Gases is careful not to demonize BNPL.
“BNPL is not evil,” she says. “But it assumes a level of discipline that many users haven’t developed yet.”
She believes education must come before access.
“Giving easy credit without financial education sets people up to fail quietly.”
What Financial Progress Really Requires
According to Gases, real financial progress is about building credibility.
“Your financial future depends on trust—trust from lenders, institutions, and even partners,” she says. “That trust is built through consistent, responsible behavior over time.”
Before using BNPL, she suggests asking a different question than most people do.
“Instead of asking, ‘Can I afford the monthly payment?’ ask, ‘What does this say about how I manage money?’”
The Long-Term View
Ultimately, Gases believes BNPL should be treated as a serious financial decision.
“Every financial action sends a signal,” she says. “BNPL sends one too—whether people realize it or not.”
Her message is simple.
“If you want better opportunities in the future, you have to protect your financial reputation today.”
