Is Buy Now Pay Later putting you at risk?

By Sara Borman · · 2 min read
Fact Checked
Advertiser disclosure

Australians have been enthusiastic users of Frollo shows that a quarter of Buy Now Pay Later users make their repayments with credit cards, potentially further feeding into a cycle of debt or accruing interest on what were originally interest-free instalments. 

It is easy to spend your means on BNPL with the attraction of low fees and no interest, but spending outside of your capacity remains a problem no matter how you finance it. Not only can you do damage to your credit score by missing payments and net some serious late fees, but paying off your BNPL with a credit card or personal loan can feed the problem (and impact your credit score) further.

Avoiding the Ugly: Finding alternatives to Buy Now Pay Later

If you are an impulse spender and find yourself getting in over your head easily with Buy Now Pay Later services, there are options. 

Look to BNPL services with low credit limits to prevent yourself from getting outside of your depth. 

Avoid linking BNPL to a credit card in order to keep free from ever paying debt with more debt.

If you need an incentive to keep your balance paid, or are looking to build back your credit score, you may want to consider a low rate credit card. You’ll avoid interest charges if you keep your balance paid in full, and making regularly scheduled payments can go a long way to repairing your credit. 

Some credit cards even have payment plan options which echo the BNPL structure, allowing you to select a number of purchases to pay back in instalments over time.

Buy Now Pay Later might be an option that works for you, but it’s important to be aware of the potential it has to get overwhelming – and fast.

Compare some of Mozo’s Best Buy Now Pay Later and Best Credit Card providers to find some of our top picks. In the meantime, start comparing low rate credit cards below.

Compare low rate credit cards

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 194 credit cards.
Last updated 9 March 2025 Important disclosures
  • Citi Rewards - Balance Transfer and Purchases offer

    Enjoy 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate. Earn up to 1 Citi reward Point per $1 on eligible transactions. Apply for a credit limit from $2,000 up to $100,000. Balance transfer fee applies. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.

    Purchase rate
    0% p.a. for 15 months then 22.49% p.a.
    Balance transfer rate
    0% p.a. for 15 months and then 22.99% p.a. (2.00% balance transfer fee)
    Annual fee
    $199
    Compare
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    Details
  • NAB Low Rate Card - Balance Transfer Offer

    Spend with confidence with a low variable purchase rate and 0% p.a. interest on balance transfers for the first 24 months. Unpaid balance transfer reverts to variable cash advance rate. 3% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget when you pay your account in full by the due date. Minimum credit limit $1,000. Low annual fee. T&Cs, fees, charges and eligibility criteria apply.

    Purchase rate
    13.49% p.a.
    Balance transfer rate
    0% p.a. for 24 months and then 21.74% p.a. (3.00% balance transfer fee)
    Annual fee
    $59
    Compare
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    Details
  • HSBC Low Rate Credit Card

    Purchase rate
    12.99% p.a.
    Balance transfer rate
    0% p.a. for 12 months and then 25.99% p.a. (2.00% balance transfer fee)
    Annual fee
    $99
    Compare
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    Details
  • Australian Unity Low Rate Visa Credit Card

    Purchase rate
    9.90% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $59
    Compare
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    Details
  • MOVE Bank Low Rate Credit Card

    Purchase rate
    8.99% p.a.
    Balance transfer rate
    0% p.a. for 6 months and then 8.99% p.a.
    Annual fee
    $59 $0 in the first year
    Compare
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    Details

^See information about the Mozo Experts Choice Credit Card Awards

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