Key Points

• Every purchase you put on a BNPL service instead of a travel credit card is points, miles, and valuable travel protections you'll never get back.
• Buy now, pay later works best for large, one-time purchases when you have no 0% intro APR card available and genuinely need to spread payments, not as a replacement for everyday spending.
• Credit cards come with purchase protections, trip cancellation coverage, and dispute resolution rights that BNPL services simply don't offer, making them the stronger default for most travel-related purchases.

Buy now, pay later services are everywhere. Klarna, Affirm, and Afterpay now pop up at the checkout of just about every major retailer, and more than 91 million Americans are expected to use them in 2025. If you've noticed these options appearing when you book flights or hotels, you're not imagining it — BNPL has moved into travel in a big way. But if you're building a points and miles strategy, reaching for a BNPL service instead of your travel credit card carries a real and often invisible cost. This guide breaks down exactly what you're giving up, when BNPL actually makes sense, and how to make the right call every time you're at checkout. If you're still weighing whether travel cards are right for you at all, start with our piece on whether travel credit cards are worth it.

What is buy now, pay later, exactly?

BNPL is a short-term financing product that lets you split a purchase into equal installments, typically four payments spread over six weeks, with no interest charged as long as you pay on time. The most popular "pay-in-4" plans from Klarna, Afterpay, and PayPal Pay Later follow this structure. Some providers also offer longer-term monthly payment plans for bigger purchases, and those often do carry interest charges.

The mechanics are simple: you select BNPL at checkout, the provider pays the merchant immediately, and you repay the provider directly. The retailer pays a fee per transaction, which is how BNPL companies make money on the interest-free plans. For longer installment plans — think 12 to 24 months through Klarna or Affirm — interest rates can run as high as 36% APR depending on your credit profile.

Critically for points collectors, when you pay with a BNPL service, you are not paying with your credit card. The BNPL provider pays the merchant, and you pay the BNPL provider — so your credit card earns nothing on the transaction.

What you actually give up when you use BNPL

This is the part most personal finance sites won't tell you clearly, because they're writing for a general audience rather than for people building travel reward strategies. Let's walk through exactly what disappears from your financial life when you skip your travel card.

Points and miles on every dollar spent

If you're using a strong travel credit card, you're earning somewhere between 1.5x and 5x points per dollar on most purchases. Take the Chase Sapphire Preferred — on a $1,000 purchase, you'd earn at least 1,000 Ultimate Rewards points, worth roughly $10 to $20 in travel, or considerably more if you transfer to a partner airline like Hyatt or United. Run that same $1,000 through Klarna's pay-in-4 plan and you earn exactly zero.

Across a year of normal spending, the math compounds. Redirect $10,000 worth of annual purchases away from your credit card to BNPL services, and you could forfeit 10,000 to 30,000 points — enough for a domestic flight or a free hotel night, gone. If you've ever wondered what Chase points are actually worth in dollar terms, our Chase points value breakdown shows exactly how much you're leaving on the table.

Sign-up bonus minimum spend progress

If you've recently opened a new travel card with a minimum spending requirement to unlock a sign-up bonus, BNPL purchases don't count. A common scenario: you need to spend $4,000 in the first three months to earn 60,000 bonus points, but you're paying for several big purchases through Afterpay. Those payments go toward your Afterpay balance, not your card's minimum spend clock. Missing a sign-up bonus can cost you the equivalent of hundreds or even thousands of dollars in travel value, which is why we consistently call sign-up bonuses the fastest way to accelerate your rewards accumulation.

Purchase protection and extended warranty

Most premium travel credit cards include purchase protection that covers items you buy against damage or theft for a period after purchase, as well as extended warranty coverage that adds an additional year or more to manufacturer warranties. BNPL services offer none of this. If your new laptop arrives damaged or a gadget stops working just outside its standard warranty, your credit card would have been your backup. BNPL leaves you with just the standard merchant return policy, which offers far weaker recourse. Our guide to credit card benefits most people don't know about covers these protections in detail — and most cardholders never use them because they don't know they exist.

Trip cancellation and interruption insurance

Book a flight or hotel with a travel credit card like the Chase Sapphire Preferred or Capital One Venture X, and you may be covered for trip cancellation and interruption up to a capped amount per person if you need to cancel or cut short a trip for a covered reason. Book that same trip via a BNPL service and you're on your own — or you'd need to purchase a standalone travel insurance policy. When you factor in the cost of a standalone policy, the "free" BNPL installments can end up more expensive. Our partner Faye Travel Insurance is a strong option if you ever do need supplemental coverage, but ideally your card handles this for you.

Dispute resolution and chargeback rights

Credit cards come with robust federal consumer protections. If a merchant doesn't deliver what you paid for, you can dispute the charge and your bank is required to investigate under the Fair Credit Billing Act, and card networks like Visa and Mastercard add their own protections on top. BNPL services have their own dispute processes, but the regulatory framework is thinner and consumers have reported more friction with returns and refunds. For large travel purchases especially, this matters.

The credit score dimension

For years, the conventional wisdom was that BNPL didn't affect your credit score because most providers didn't report to the major bureaus. That's changing. FICO announced it would begin incorporating BNPL data into credit scoring models starting in late 2025, though several major providers including Klarna and Afterpay have indicated they won't send data to the bureaus. Affirm has been reporting to Experian, Equifax, and TransUnion and is working with FICO on model development.

What this means practically: the credit landscape for BNPL users is shifting. If a provider eventually does report your BNPL activity, late payments could hurt your credit score just like a missed credit card payment would. Credit cards, paid in full and on time, actively build your credit history, credit mix, and utilization ratio — all factors that matter when you apply for your next premium travel card. Our complete guide to your FICO score is a useful resource if you want to understand exactly what moves the needle. And if you're wondering whether you're ready to apply for a travel card, see what credit score you need for a travel credit card.

When BNPL actually makes sense (even for points travelers)

BNPL isn't always the wrong answer. There are specific situations where it can serve a genuine financial purpose, even for people building a travel rewards strategy.

• You don't have a 0% intro APR card available and you need to spread payments. If you have a large, necessary purchase and no interest-free period on any current card, a pay-in-4 BNPL plan effectively gives you six weeks of free financing. The opportunity cost in lost points is real, but it's lower than carrying a balance at 22% APR.
• You're buying from a merchant that doesn't accept credit cards. Some smaller vendors or online marketplaces charge credit card processing surcharges. If that surcharge exceeds what you'd earn in rewards, a BNPL option can make sense.
• You're booking flights through Alternative Airlines. Our partner Alternative Airlines offers BNPL payment options specifically designed for travel bookings. If you're in a cash-flow crunch on a high-ticket international flight, spreading the purchase can be a practical bridge.
• You've already hit your sign-up bonus spend and hold no active earning card. If you're between travel cards and don't have an active rewards card in your wallet, BNPL at least isn't costing you points you were going to earn anyway.

A better alternative to BNPL: 0% intro APR credit cards

If your goal is to spread out a large purchase without paying interest, a credit card with a 0% introductory APR period is almost always a better choice than BNPL. You still earn points on the purchase, you still build credit, you still have access to purchase protections, and you have more flexibility in how you structure repayments over a much longer window — sometimes 15 to 21 months.

The Capital One VentureOne Rewards Credit Card is a strong example: it carries a 0% intro APR period for eligible new cardholders, earns miles on every purchase, and lets you spread payments without interest during that window. You get the core benefit of BNPL while keeping rewards earning and credit protections intact. For a broader look at cards in this category, our list of the best no annual fee credit cards includes several with introductory APR offers worth considering.

One important note: credit cards charge interest on any balance remaining after the intro APR period ends. BNPL's pay-in-4 plans are structured so you're done in six weeks. If you know you won't pay off a balance in time, that discipline gap matters and BNPL's shorter repayment window can prevent you from carrying a balance long-term. Be honest with yourself about which tool fits your situation.

What about large purchases specifically?

Large purchases are where the BNPL temptation is strongest, and also where the trade-off with rewards cards is clearest. Before reaching for BNPL on a big-ticket item, check our guide to the best credit cards for large purchases — there are cards designed specifically to maximize value on exactly this type of spending, whether that's through elevated earning rates, purchase protections, or intro APR windows.

If you're financing something like home renovations or a major appliance and need 12-plus months to pay it off, a balance transfer card or a dedicated 0% APR card almost always beats BNPL on total financial value.

Using BNPL for travel purchases specifically

Some travelers use BNPL to book flights, hotels, or vacation packages, and the appeal is obvious. A $2,000 international flight spread across four payments feels less painful than one charge. But the math deserves a closer look.

Booking that $2,000 flight with the Amex Platinum — which earns 5x Membership Rewards points on flights booked directly with airlines — would net you 10,000 points. Depending on how you redeem, that's anywhere from $100 to $200+ in travel value from a single transaction. Put the same booking through Klarna and you earn nothing, plus you forfeit trip cancellation insurance and other protections. It's not a close call.

If affordability is the concern, charge the flight to your travel card and pay the full balance before interest accrues. Most travel cards have a grace period meaning you pay zero interest as long as you clear your statement balance monthly. That's the interest-free option that also earns you points. For a deeper look at how to choose the right card for flights, see our guide on the best credit card for your first international trip.

The annual fee offset angle

One argument in favor of BNPL is that it carries no annual fee. But if you hold a travel credit card with an annual fee, every purchase you redirect to BNPL makes that fee harder to justify. The value of your travel card comes from using it — earning points, unlocking benefits, working toward status. A $95 or $550 annual fee is much easier to offset when your card is your primary payment method. Divert significant spend to BNPL and you may find yourself wondering whether the card still makes sense. Our piece on how to evaluate credit card annual fees walks through exactly how to run those numbers.

The bottom line

Buy now, pay later services are a legitimate financial tool. For some shoppers — those without access to credit, managing tight cash flow, or buying from merchants that don't accept cards — they fill a real gap. But for points and miles enthusiasts who hold travel credit cards, BNPL represents a silent value drain. Every purchase diverted away from your travel card is points you didn't earn, protections you didn't have, and credit history you didn't build.

The exceptions are narrow: large purchases when you have no intro APR card, merchant surcharges that exceed your earning rate, or genuine cash-flow emergencies. Outside those situations, your travel credit card is almost always the better tool. Use it, pay it in full, and let the points compound. If you're not sure your current card lineup is earning everything it should, check our guide to the best overall travel credit cards — or apply for the Chase Sapphire Preferred, the card we most often recommend as the ideal starting point for a serious points strategy.

Frequently asked questions

Does using BNPL hurt your credit score?

It depends on the provider and whether they report to credit bureaus. FICO started incorporating BNPL data into its models in late 2025, but many major providers like Klarna and Afterpay say they won't report to the bureaus. Affirm does report to Experian, Equifax, and TransUnion. Late payments on any BNPL service can trigger collections, which would hurt your score regardless of reporting policies.

Can I earn credit card points on BNPL purchases?

No. When you use a BNPL service, the provider pays the merchant directly and you repay the BNPL company. Your credit card is not involved in the transaction, so you earn no points or miles. Some BNPL services offer their own limited rewards, but these aren't comparable to travel credit card earning rates.

Is BNPL or a credit card better for booking flights?

A travel credit card is almost always better for booking flights. You earn points or miles on the purchase, you may be covered by trip cancellation and interruption insurance, and you have stronger dispute resolution rights. If affordability is the concern, charge the flight to your card and pay it off before interest accrues using your card's grace period.

What's the difference between BNPL and a 0% APR credit card?

Both let you spread payments without interest, but a 0% APR credit card lets you earn rewards on the purchase, builds your credit history, and typically offers a much longer interest-free period (12 to 21 months vs. BNPL's typical six weeks). After the intro period, your card's standard APR applies to any remaining balance. BNPL is fully interest-free within a fixed window but offers no rewards or credit-building benefits.

Are there fees for using buy now, pay later?

The standard pay-in-4 plans are interest-free with no fee if you pay on time. Late payments can trigger fees (Afterpay charges $8 or 25% of the transaction, whichever is less). Longer-term installment plans from providers like Affirm or Klarna can carry interest rates up to 36% APR. Always read the specific plan terms before committing.

What happens if I need to return something I bought with BNPL?

Returns can be more complicated with BNPL. You typically process the return through the merchant first, then the BNPL provider adjusts your payment schedule. Getting money back for payments already made can take time. Credit card chargebacks are generally faster and more consumer-friendly for disputed purchases.

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