This article was reprinted with permission from NerdWallet.BNPL, or Buy Now, Pay Later is catching on. Klarna, Afterpay, and Affirm are popular providers that allow customers to split up purchases into predetermined installments. Many consumers are now opting in.Collin Czarnecki says that the pandemic has accelerated the use buy now, buy later services. He was the author of a C+R Research report on buy now and pay later, which found that 51% consumers used these services during the COVID-19 crisis. People became more aware of the convenience factor and increased online shopping.Credit cards can be used as a convenient way to finance your purchases. They can be used anywhere, unlike BNPL. Credit card balances accumulate until cardholders pay them off. This means there is less predictability. BNPLs predictability seems to be a popular choice for many consumers. Czarneckis' report showed that 38% of BNPL users said it would eventually replace their credit card.Credit cards still offer benefits that BNPL options cannot match such as rewards or reporting positive payments history to credit bureaus. Many card issuers offer their own version of BNPL.These are some questions to ask when you weigh buy now, pay it later options against credit card debt.Which type of financing flexibility are you looking for?C+R Research found that 45% thought it was simpler to pay BNPL than credit cards and 44% thought it offered greater flexibility.Also, see: Are ecofriendly credit cards good for the environment?Credit card holders must pay the minimum monthly payment. However, if you choose buy now, pay later you may be able to make a three, five, or 12-month payment. There are many options for how to set up your payment.Casey Merolla is a managing director of Accentures' payments group. He says this type of mental accounting is more accessible to some customers.People feel that they have more control over the payments. She says that it is a fixed purchase, and not revolving. After you have paid it off, it is over. This allows people to control their spending and gives them a new financing option.Flexibility is all in the eyes of the beholder.BNPL options are limited to a particular purchase made by a merchant. Credit cards can be used to make all types of purchases.BNPL offers more flexibility, while credit cards offer greater acceptance.Do not miss this: Banks offer credit cards to consumers without credit scores. This will really help consumers.What is the cost and accessibility of financing?The fees and interest rates for BNPL vary greatly. Some options do not have any interest or fees, making it free financing. (BNPL providers still make money from merchant fees, which are baked into the product's price. This is similar to how payment networks make money from interchange fees for credit card cards.They can either have a fixed or no cost, and they will be very upfront about how much it will cost you, according to Ginger Schmeltzer (a senior analyst at Aite Groups retail banking practice and payments). She says that people like the predictability.She says that longer-term loans through BNPL, which can last for up to 48 months, typically have an interest rate similar to a personal loan. BNPL providers don't check credit for approval, so accessing financing is easier than a loan.Credit card issuers will almost always check your credit history when you apply for a credit card. This could mean that it might not be an option depending on your credit score. Credit card interest rates can be very high if you have one already and want to use it to finance a purchase.It is important to remember that the annual percentage rate of your credit card will not apply if you pay the bill on time. You won't owe any interest.Nerdy tip - Some credit cards offer 0% intro APR on purchases. However, most promotional periods last around 18 months. To qualify, you will need to have good to excellent credit scores of 690 and higher. The promo APR will still be available if you make the minimum monthly payments or you risk losing it.Are you looking for convenience or incentives?You can earn points, cash back and miles by using a credit card for purchases. You can get at least 2% back for every purchase if you have excellent credit. This can help you save a lot. Other benefits that credit cards offer include purchase protection and insurance.BNPL providers do not offer these types of protections or rewards, nor the credit-reporting benefits that credit cards offer.Schmeltzer says that most [BNPL providers] don't report back to credit bureaus so consumers cant build that history. However, she does add that some providers are beginning to do so.However, BNPL has an intuitive side that many consumers and experts prefer to credit cards. Czarnecki purchased furniture recently after moving. He opted for buy now, pay later financing.He says that it seemed very user-friendly. It was easy to click on the cart, and I knew that the approval process would be instant.It was also easier for him to budget. He says that it is easier to know how much I have left to pay than a credit card where I may have to pay for gas or groceries.He was willing to give up rewards in exchange for convenience.Check out these 8 tips to maximize your credit card rewardsIs your credit card issuer offering a buy now, pay later version?You might want to review your current balance before you jump on a BNPL deal. The rise of BNPL is being closely monitored by credit card issuers who are offering their own predictable payment plans for certain purchases.The availability of features varies from issuer to issuer. Fixed monthly fees and terms may also apply. Some examples are:American Express' Plan It feature. AXP, +0.60%Chase Chase My Chase Plan JPM, +0.91%Citi Flex Pay, available from Citi CITCredit cards for startups from Upgrade.These plans, unlike BNPL are post-purchase. Schmeltzer states that although each plan is different, it's worth looking at what options are available as they might provide more flexibility.NerdWallet: MoreKimberly Palmer writes about NerdWallet. Email: kpalmer@nerdwallet.com Twitter: @kimberlypalmer
