Buy Now Pay Later credit cards are a great option if you’re not going for a loan in the next couple of years. However, if you are going for a loan, then you need to be strategic about using these types of credit cards. Although you are purchasing something now, and don’t have to pay until a later date you still have that debt on your credit report. Therefore, when applying for a loan it will show that you are a high-risk borrower because of the debt from the buy now pay later credit card. We recommend keeping your credit balance to credit limit ratio no more than 10%, this will ensure your credit score won’t drop if you apply for a loan.