Tempted to use buy-now-pay-later to split your rent payments? Watch out for these fees.

MarketWatch

by Genna Contino

February 13, 2026

AI-Generated Deep Dive Summary

Splitting your rent payments with buy-now-pay-later (BNPL) services may seem like a convenient financial workaround, but it’s essential to carefully consider the hidden costs and fees. While these services often market themselves as “0% interest” options, they can end up being more expensive than expected due to additional charges like transaction fees or penalties for late payments. Many BNPL providers now offer features tailored to renters, allowing them to split their rent into installments throughout the month. However, this convenience comes at a price: users could face unexpected fees that make the overall cost of renting higher than paying in full. The trend of using BNPL services for housing expenses is growing, with nearly one-quarter of users reporting they’ve used pay-in-four loans to cover rent or other housing-related costs, according to recent survey data. These programs allow tenants to spread out their payments over time, which can be tempting for those struggling to come up with the full amount at the start of the month. However, renters should be cautious: while some services may claim to offer “0% interest,” they often include hidden fees or charges that erode the savings promised by the 0% rate. For example, many BNPL providers charge a processing fee for each installment, which can add up over time. Additionally, late payments or missed deadlines can result in extra penalties, further increasing the total cost of using these services. Tenants should also be aware that splitting rent payments through BNPL services may impact their credit score if they fail to make timely payments, potentially harming their financial health. From a broader perspective, the rise of BNPL options for rent reflects a growing trend among fintech companies to offer flexible payment solutions for everyday expenses. While these tools can provide short-term relief for cash-strapped renters, they are not without risks. Experts advise consumers to thoroughly review the terms

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Originally published on MarketWatch on 2/13/2026