Buy Now, Pay Later Comes at a Price: Credit Score Risks You Need to Know (Plus: $124k Windfall Tips)

Understand how Buy Now, Pay Later financing options affect your credit and learn smart strategies for using a six-figure inheritance wisely. How does Buy Now, Pay Later (BNPL) affect your credit score? What’s the smartest way to invest or use an unexpected inheritance? Hosts Sean Pyles and Elizabeth Ayoola discuss the evolving credit implications of BNPL services and break down how to manage a money windfall responsibly. Joined by NerdWallet’s Anna Helhoski and Jackie Veling, they begin with a deep dive into BNPL, including how it works, why it’s becoming more prominent in credit reporting, and how it can either help or hurt your credit depending on your habits. Key takeaways include how new FICO scoring models treat BNPL loans, tips for avoiding pitfalls like loan stacking, and whether BNPL is a wise tool for building credit. Then, investing Nerd Alana Benson joins Sean and Elizabeth to help answer a listener’s question about what to do with a $124,000 inheritance. They walk through thoughtful allocation strategies across emergency savings, debt payoff, investing, and even making room for some guilt-free fun. Topics include how timelines impact where you park your money, differences between IRAs and taxable brokerage accounts, when to use a robo-advisor, and how fees can quietly erode returns. Use NerdWallet’s free expense ratio calculator to enter your initial investment, future contributions, time horizon and projected annual return in order to compare two expense ratios and find out how much you could lose by choosing the more expensive fund: https://www.nerdwallet.com/article/investing/mutual-fund-expense-ratios Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header In their conversation, the Nerds discuss: BNPL credit score, FICO 10 score, how to use BNPL responsibly, BNPL and credit bureaus, new FICO credit model, inheritance investing, what to do with a windfall, best way to invest $100k, pay off student loans or invest, CD vs high-yield savings, high-yield checking account, IRA contribution limits, Roth IRA or brokerage account, how to use a robo-advisor, best robo-advisors 2025, IRA vs brokerage, investing after inheritance, compound interest calculator, how to build credit, down payment savings tips, investing timelines, financial planning after inheritance, robo advisor fees, expense ratio impact, credit building strategies, high-yield CD rates, traditional vs Roth IRA, 457 plan investing, state employee retirement options, financial windfall tax strategy, 529 college savings plan, credit score and BNPL, and BNPL late payments impact. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices