Travellers warned ‘don’t do it’ over popular pay method at airlines – you’ll see negative effect months later Getty AIRLINE travelers are being warned that ‘buy now, pay later’ deals could see them paying significantly more for their flights in the long run. Point-of-sale finance deals offered by all major airlines are increasingly popular as cash-strapped customers seek to spread the cost of their travel over time. These offers, while convenient at the point of purchase, present a hidden financial risk that can impact travelers for months after their flights have concluded. The core issue lies in the interest charged on these loans, which travelers must repay in addition to the original flight cost. Experts strongly advise against relying on these short-term loans, as the cumulative effect of debt can have a detrimental impact on credit scores and financial well-being. The concern isn't just about the immediate cost; it's about the long-term consequences of accumulating debt. These deals appear as loans on your credit record, and taking on multiple short-term loans or maintaining a high level of debt are significant warning signs for lenders. Airlines are capitalizing on consumer demand, offering ‘buy now, pay later’ options to increase revenue. Understanding how these deals work is crucial for travelers. At checkout, you’ll typically be presented with several payment options, including using a credit or debit card or spreading the total flight cost over a fixed number of months. Airlines often advertise ‘no credit checks,’ making these deals accessible to a wider range of customers. However, it’s essential to remember that the debt still needs to be repaid, and excessive borrowing can negatively impact your credit rating. Far from being a free solution, these high-cost personal loans can result in substantial repayments, frequently exceeding those charged by traditional credit card providers.

‘The short answer is don’t do it,’ stated Clint Henderson, a travel expert at The Points Guy, during an interview with NBC Boston. ‘All the airlines offer some form of ‘buy now, pay later’ now, so they’re all getting in on the act. You know, this is free money for them.’

Generally, paying with a debit card is the most cost-effective option, provided you have sufficient funds available in your bank account. However, if you need to utilize credit to cover your flight expenses, it’s crucial to carefully review the fine print to ensure you’re securing the best possible deal. Frequent fliers may find that opening a travel credit card can unlock attractive rewards, such as statement credits and substantial signup bonuses. These cards can offer valuable benefits, particularly for those who frequently travel. ‘You’re much better off opening a credit card that’s going to give you a statement credit and a big signup bonus,’ said Henderson.

Ultimately, customers are encouraged to shop around for low-cost flights to find the most competitive prices. Flight prices fluctuate considerably, meaning the same flights can vary in cost depending on the day or time of year. Experts recommend setting up travel alerts to monitor price changes and secure the best possible deals. Airlines often promote summer deals, which can significantly reduce the cost of flights, even to popular destinations across the US and internationally. These promotional offers can be a fantastic opportunity for holidaymakers to slash their travel expenses.