Most consumers want to increase their credit rating and they cite several reasons for their interest in doing so.
According to The New Credit Model, a study by PYMNTS and Sezzle collaboration that surveyed 7,024 American consumers.
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Other reasons given by at least one in 10 consumers for wanting to improve their credit rating are emergency help, better credit products, and borrowing for large purchases.
Consumers are also taking several approaches to improving their credit rating. The main ones are opening a new credit card and using an installment credit product. Each of them is cited by around four in ten consumers.
Other ways to improve their credit score include taking out a personal loan and a car loan, approaches that about three in 10 consumers say will improve their credit score.
Forty-two percent of consumers who think taking on new debt will improve their credit rating believe that an installment credit product linked to their debit cards and used to make a purchase and pay it off in three or four monthly installments programs will improve their credit scores.
Such an installment plan is considered a more viable credit repair option than taking out a bank, car, or home loan.
These are several reasons why the popularity of Buy Now, Pay Later (BNPL) continues to grow.