Buy Now, Pay Later (BNPL) plans are a popular way to make purchases online. But like all forms of credit, BNPL comes with its share of risks. Before your next big purchase, make sure you are adequately informed about BNPL, so you don’t end up owing more than you bargained for.

Buy Now, Pay Later plans are a type of credit that allows customers to fully purchase products and spread payment over installments. These are often advertised as “pay in four” plans that bill equal amounts every few weeks. While BNPL options are now common at major stores, BNPL is not a simple installment agreement with a store itself. Rather, BNPL is a line of credit from an outside company.