Typically, when using Buy Now, Pay Later loans, consumers pay for a given purchase in four installments over six weeks, in a model more similar to layaway than to a traditional credit card. The loans are marketed as zero-interest, and most require no credit check or only a soft credit check.

By now, pay later loans have helped many people stretch their budgets by paying off purchases through installments. But soon, you'll see those loans on your credit report.