SaskWatch Newsletter
Consumer Association of Saskatchewan Inc.
SaskWatch Newsletter Fall 2025
Should You “Buy Now, Pay Later”?
by Billie Sarcauga
Buy Now, Pay Later (BNPL) services are becoming an increasingly popular way for consumers to manage purchases, particularly larger or unexpected expenses. When online shopping, you may see a logo of a BNPL company, such as Klarna or AfterPay, showing how much you can pay per installment. This payment option allows shoppers to buy items immediately and pay for them over time, typically in a series of smaller, interest-free payments. As more retailers adopt these plans both online and in-store, it’s important to understand how BNPL works, its benefits, its potential drawbacks, and how to use it responsibly.
What are “Buy Now, Pay Later (BNPL)” Services?
BNPL is a form of short-term financing that allows consumers to make purchases and pay for them in installments rather than in full at the time of sale. Often, the total amount is divided into four equal payments spread over several weeks, with no interest if payments are made on time. This financing option may also be referred to as installment payment plans, retail financing plans, installment loans, credit card installment plans, or retail credit services.
There are two main types of BNPL payment plans: Equal payment plans require fixed, regular payments (bi-weekly or monthly) until the item is fully paid off. Deferred payment plans allow consumers to pay the full balance by a specific due date without a set payment schedule. If paid on time, these plans typically don’t carry additional fees. (1)
How does “Buy Now, Pay Later” Work?
Buy Now, Pay Later services vary on the service terms and conditions. At checkout,
whether online or in-store, customers can choose BNPL as their payment method. If approved, which often happens instantly, the purchase is divided into installments. Most BNPL plans deduct payments every two weeks, though some providers may follow a monthly schedule. While many plans don’t require a credit check, some may conduct a soft inquiry that doesn’t impact your credit score.
Your BNPL provider could be a bank, credit union, financing company, or a fintech business. Payments are made directly to this provider, not the retailer. These plans function much like short-term loans, a borrowed amount of money to be repaid over a set period of time and are interest-free if repaid on time. BNPL payments are also tied to the specific product purchased. Some BNPL services allow you to set up a payment plan at the point of sale, while others offer post-purchase setup options. Some providers even integrate payments into your credit card billing cycle. (2)
Popular BNPL Providers
Several BNPL services dominate the market, each with its own features and policies. It is important to read the terms and conditions to consider what is best for you ensure you are safe from possible hidden fees.
Below is a comparison of the most popular services in 2025 in Canada – Afterpay and Klarna (3):
| Klarna | Afterpay | |
| Payment Options | 4 payments in 6 weeks. Pay the full amount in 30 days. Or monthly financing with payments over 3-36 months. | 4 payments in 6 weeks. Or monthly financing with payments over 3-60 months. |
| Payment in 4 Interest | No interest |
No interest
|
| Monthly Financing Interest |
7.99-33.99% annual percentage rate
|
6.99-35.99% APR
|
| Late Fee | Up to $7 |
Up to $8
|
| Service Fee | $1-$3 (waived for KlarnaPlus) | N/A |
| Credit Check | Soft (doesn’t affect credit score) | Soft (doesn’t affect credit score) |
Pros of BNPL
BNPL can be a convenient financial tool, especially for short-term budgeting:
- No interest charges if payments are made on time.
- Easy and quick approval process, often with no hard credit check.
- Flexible budgeting, allowing consumers to spread payments over time.
- Digital convenience with app-based management and alerts.
- Straightforward repayment structure, helping to avoid confusion over terms and due dates. (4)
Cons of BNPL
Despite its benefits, BNPL isn’t without risks:
- Overspending is common, as breaking a payment into smaller amounts can create a false sense of affordability.
- Late fees apply if payments are missed, which can increase the overall cost.
- Debt accumulation can occur when multiple BNPL plans are used at once, making them hard to track and manage.
- Credit score impact is possible if your payment history is reported due to missed or late payments. (5)
Using BNPL irresponsibly can lead to financial stress, especially if you’re already managing other debts. In severe cases, it could contribute to a worsening financial situation, potentially leading to bankruptcy or the need for a consumer proposal.
Does BNPL Affect Your Credit?
Generally, BNPL services do not require a hard credit check to get started, and many use only soft pulls that do not impact your score. However, certain providers or larger purchases might require a full credit check. (6) More importantly, failing to make payments on time could result in your provider reporting delinquent activity to credit bureaus, which can negatively affect your credit score. (7)
Tips For Using BNPL Services
To avoid falling into financial trouble with Buy Now, Pay Later (BNPL) services, it’s important to follow a few key guidelines. Only purchase items you can afford to repay within the set timeline, and make sure to track your payment schedule carefully to prevent missed payments and late fees. Use BNPL sparingly and only for specific needs, rather than relying on it for everyday expenses. Additionally, always read the fine print and ensure you understand the terms, including any fees, due dates, and how payments are processed. (8)
In conclusion, Buy Now, Pay Later plans can be a helpful way to manage costs, particularly for large or unexpected purchases, if used wisely. However, it’s important to remember that BNPL is not free money. It’s a form of short-term debt that should be treated with the same seriousness as any other loan. Before signing up, ask yourself: Do I really need this item? Can I afford the payments? Am I prepared for possible fees or interest if something goes wrong? (9) When used responsibly, BNPL can be a flexible and interest-free alternative to traditional credit, helping you stay within your budget and make important purchases manageable.
Sources:
1.Financial Consumer Agency of Canada. “Government of Canada.” Canada.ca, January 1, 2025. https:// www.canada.ca/en/financial-consumer-agency/services/loans/buy-now-pay-later.html.
2.BMO. “What Is a Buy Now, Pay Later Plan?” BMO, November 3, 2023. https://www.bmo.com/en-ca/main/personal/credit-cards/what-is-buy-now-pay-later/.
3.Garza, Laurie Masera. “Klarna vs Afterpay vs Affirm: In-Depth 2025 Comparison: Primeway Federal Credit Union.” Klarna vs Afterpay vs Affirm: In-Depth 2025 Comparison, April 10, 2025. https://www.primewayfcu.com/blog/buy-now-pay-later-comparison.
4.Udavant, Sakshi. “Buy Now, Pay Later (BNPL): What It Is, How It Works, Pros and Cons.” Investopedia, March 5, 2025. https://www.investopedia.com/buy-now-pay-later-5182291.
5.“Buy Now, Pay Later: A Double-Edged Sword.” MNPDebt.ca, February 8, 2024. https://mnpdebt.ca/en/resources/mnp-debt-blog/buy-now-pay-later-double-edged-sword.
6.BMO. “What Is a Buy Now, Pay Later Plan?” BMO, November 3, 2023. https://www.bmo.com/en-ca/main/personal/credit-cards/what-is-buy-now-pay-later/.
7.Financial Consumer Agency of Canada. “Buy Now, Pay Later Plans.” Canada.ca, January 1, 2025. https://www.canada.ca/en/financial-consumer-agency/services/loans/buy-now-pay-later.html.
8.Financial Consumer Agency of Canada. “Buy Now, Pay Later Plans.” Canada.ca, January 1, 2025. https://www.canada.ca/en/financial-consumer-agency/services/loans/buy-now-pay-later.html.
9.Financial Consumer Agency of Canada. “Buy Now, Pay Later Plans.” Canada.ca, January 1, 2025. https://www.canada.ca/en/financial-consumer-agency/services/loans/buy-now-pay-later.html.
PSA: Scams Targeting Wildfire Evacuees in Saskatchewan
The Financial and Consumer Affairs Authority (FCAA) of Saskatchewan is alerting residents about scams
targeting wildfire evacuees. These fraudulent messages, posing as communications from the Canadian
Red Cross, ask for personal and banking details under the pretense of processing payments. In response, the Canadian Red Cross has issued a fraud alert related to the Manitoba and Saskatchewan wildfires, emphasizing that individuals eligible for financial assistance will not be asked to provide their social insurance number, bank account details, or credit card information during the registration process. Given the rise in such scams, the FCAA urges all Saskatchewan residents to exercise caution when contacted by organizations requesting personal or financial information, especially those claiming to offer aid.
To protect yourself from scams, avoid answering or engaging with unsolicited messages, and never
click on any links or attachments they may contain. It’s important to never share personal information—such as your Social Insurance Number, bank account details, or credit card information—through email, phone, or text. If you suspect you’ve received a scam message, phone call, or email, report it immediately to your local police or the Canadian Anti-Fraud Centre.
Your Voice Matters – Help Us Advocate for Saskatchewan Consumers
At Consumer Association of Saskatchewan, we believe that meaningful change starts with listening. That’s why we truly value your input. Whether you’ve had a positive or negative experience as a consumer in Saskatchewan, your stories and concerns help us identify the issues that matter most—and take action where it counts.
Your feedback plays a vital role in shaping our efforts to promote fairness, transparency, and accountability in the marketplace. By sharing your experiences or asking questions, you’re contributing to a stronger, more informed consumer community.
If you’ve faced challenges with a product or service, have concerns about your rights, or simply want to know more about how to protect yourself as a consumer, we want to hear from you. Every message
helps us better understand what’s happening on the ground and how we can support change that benefits everyone.
Visit ConsumersAsk.com to connect with us, share your feedback, or ask a question.
Together, we can make Saskatchewan’s marketplace fairer, more transparent, and more responsive to the needs of its people.
Credit Scores 101: What Every Consumer Should Know
By Billie Sarcauga
As a young adult, building good credit might not feel like a priority, but it can have a major impact on your future. Oftentimes, it is not information regularly taught in a classroom or at home. Whether you’re trying to rent an apartment, finance a car, open a credit card, or eventually buy a home, your credit score plays a big role in whether you’re approved and how much interest you’ll pay. Understanding how credit scores work now can save you money and stress later. This article will be discussing the basics and breaking down the importance of credit scores.
A credit score is a three-digit number, usually ranging from 300 to 850, that reflects how reliable you are when it comes to borrowing and repaying money. The higher your score, the more trustworthy you appear to lenders and other institutions. Credit scores are used by banks, landlords, utility companies, and even some employers to decide whether they can trust you to make payments on time. (1)
How to Start Building Credit
If you are just starting out, there are several ways to begin building your credit score:
- Open a Starter Credit Card: A student card or secured credit card can be a good first step. Using your card for day-to-day purchases and repaying at your due date shows repayment history. Student cards are ideal for teaching financial responsibility, since these cards have lower credit limits and lower introductory interest rates. (2)
- Always Pay on Time: Even one missed payment can negatively impact your score. Familiarize yourself with the statement period, closing date, and due date on your credit card statement. This will help you build a solid credit history and avoid high interest charges. (3)
- Use Only What You Need: Keep your balances low – ideally below 30% of your credit limit. Maintaining low credit utilization shows that you can borrow modestly and repay on time, rather than frequently maxing out your credit limits and risking missed payments. (4)
- Avoid Opening Too Many Accounts at Once: Every time you apply for credit, your score may take a slight hit. Submitting multiple applications at once, such as several credit cards, can hurt your credit early on. Whether you’re applying for a credit card, a bank loan, or even a new mobile phone plan, these actions trigger hard inquiries on your report. Too many hard inquiries can signal to lenders that you’re taking on excessive debt and could struggle with repayment. To avoid this, it’s better to start with just one credit card that you can manage responsibly. (5)
What affects your credit score?
As you start building credit through a few purchases, several key factors begin shaping your credit history. Credit scores are based on the information in your credit report. There are five main factors that should be managed effectively.
Your payment history makes up for 35%, and it is the most important factor in determining your credit score. It shows whether you’ve made your payments on time for things like credit cards, loans, and other bills. Late or missed payments have the biggest negative impact on your score, while consistent on-time payments help it grow. If you miss a payment on a credit card, that one late payment can hurt your score for months. But if you make every payment on time, it will gradually boost your score.
Amounts owed refers to how much of your available credit you are using, and it affects your credit history by 30%. Lenders like to see that you’re not overextending yourself, so it’s best to keep your credit utilization ratio under 30%. This means if you have a credit limit of $1,000, it is recommended to avoid carrying a balance of more than $300. If you’re using 80% of your available credit, it can signal that you’re relying too much on credit, which can lower your score. Try to keep your balances low, even if you pay them off in full each month.
The length of your credit history affects your score by 15%. The longer you’ve had credit, the better it is for your score. Lenders want to see that you’ve been able to manage your credit over time. This doesn’t mean you should rush into opening a bunch of credit cards, but keeping accounts open (even if you don’t use them) can be helpful. If you open a credit card today, it will take a few years before your credit history grows long enough to have a significant impact on your score.
Each time you apply for new credit, a “hard inquiry” is made on your report – this takes up 10%. Multiple inquiries in a short period can temporarily lower your score because it signals that you may be taking on more debt than you can handle. Try to space out your applications for credit, especially when you’re just starting out. Applying for five credit cards in one month can drop your score, even though you may only be approved for one or two. Space out your credit applications to avoid this.
A mix of credit accounts make up for the remaining 10% of your score. Lenders like to see a healthy mix of credit accounts, such as credit cards, installment loans, and other types of credit. However, this factor is less important when you’re just starting to build your credit. You don’t need to open multiple types of credit just for the sake of your score. As you build your credit, you can diversify your credit mix if needed. (6)
Why Your Credit Score Matters
A strong credit score gives you access to better financial opportunities. It can help you qualify for higher-quality credit cards and loans, get lower interest rates, and even make it easier to rent an apartment or avoid deposits on utilities and phone plans. On the flip side, a poor credit score can lead to higher borrowing costs, loan rejections, and limited housing options. Essentially, good credit makes life more affordable and flexible.
Your credit score is like a financial report card. The earlier you learn how to manage it well, the more doors you’ll open for your future. Be wise, consistent, and cautious. Start with small, manageable steps: pay on time, stay under your limit, and monitor your progress. Remember, building credit is a marathon, not a sprint, and every smart move you make now adds up over time.
Sources:
1.“What Is a Credit Score & Why Is It Important?” Equifax. Accessed August 21, 2025. https://www.equifax.com/personal/education/credit/score/articles/-/learn/what-is-a-credit-score/.
2.“5 Ways to Build Your Credit from Scratch | Transunion Canada.” TransUnion. Accessed August 17, 2025. https://www.transunion.ca/build-credit.
3.“How to Build Credit History in Canada.” Scotiabank Canada. Accessed September 2, 2025. https://www.scotiabank.com/ca/en/personal/loans-lines/borrowing-basics/building-a-good-credit-history.html.
4.“What Is Credit Utilization and How Does It Impact Your Credit Scores?” Equifax. Accessed August 31, 2025. https://www.equifax.ca/personal/education/credit-score/articles/-/learn/what-is-credit-utilization/.
5.“5 Ways to Build Your Credit from Scratch | Transunion Canada.” TransUnion. Accessed August 17, 2025. https://www.transunion.ca/build-credit.
6.“How Are Credit Scores Calculated?” Equifax . Accessed August 18, 2025. https://www.equifax.ca/personal/education/credit-
score/articles/-/learn/how-are-credit-scores-calculated/.
Report from the President
By Lou Hammond Ketilson
Lou Hammond Ketilson welcomed a small but enthusiastic group to the 2025 Consumer Association of Saskatchewan Annual General Meeting. Our key note speaker was Dr. Lisa Jewell, Research Associate at the Centre for Forensic Behavioural Science and Justice Studies, University of Saskatchewan. Her topic “Responding to Consumer Needs More Effectively to Further Access to Justice: Findings from the Saskatchewan Legal Needs Survey” was timely and important. The research was carried out under the auspices of the Centre for Research, Evaluation, and Action Towards Equal Justice (CREATE Justice), College of Law, University of Saskatchewan. We look forward to more opportunities to work with this Centre.
The past year has been a year of success as well as change for the Consumer Association of Saskatchewan (CASK). We have made advances toward implementing our strategic plan, but due to unexpected Board and staff changes, have experienced a few setbacks. Overall we are making steady progress toward strengthening CASK, extending its presence and increasing its ability to support positive outcomes for Saskatchewan consumers.
We were saddened to know that Donna Slusar would be leaving the CASK board. Donna’s important contributions to our organizations were many and played a significant role in implementing our strategic plan. We would like to express our appreciation for the time she was able to give to CASK. During the process of our search to replace departing staff person, Monica Gordon, we determined that two positions were warranted to fully achieve our strategic plan.
We were extremely pleased to have Anna Olatunbosun join us in the office administrative position and Billie Sarcauga fill our communications position. We continue to look for new board members as well as individuals interested in working on shorter term specific topics of focus.
Our new and much improved website was launched in March. It has a new look and great information, providing consumer resources, updates on our activities, as well as the latest version of our newsletter SaskWatch. SaskWatch is now available in a fully accessible format, as well as PDF for those who wish to download their own copy. We continue to make improvements to the website, adding new or updated consumer information.
In December we were pleased to provide input to the Regulations Amending the Financial Consumer Protection Framework Regulations (SOR/2025-96 Canada Gazette, Part II, Volume 159). This federal legislation had already been published in the Canada Gazette, but revisions were made in response to several public comments received. The amended Regulations will protect financial consumers by reducing the circumstances in which NSF fees are charged and putting a limit on the cost of an NSF fee when one is received. While we cannot take credit for these changes, the amendments were consistent with our input.
Our focus for the upcoming year will be to improve the capacity of CASK to better understand and represent the opinions and needs of Saskatchewan Consumers; and, to identify topics of importance to Saskatchewan consumers on which to focus related research, communication and/or advocacy. We encourage readers to respond to any queries or surveys related to these topics coming from our
organization.
Photo by the Saskatoon Council On Aging
Spotlight on Seniors is an annual event hosted by the Saskatoon Council on Aging and TCU Place. This event happens during Seniors Week in Saskatchewan and is the province’s largest event for older adults.
Spotlight on Seniors is an event designed to to both educate and entertain older adults in Saskatoon and the surrounding area. Explore more than 80 trade show booths and exhibits covering a wide range of topics, from consumer issues and investments to retirement and vacations. Anything that has an impact on the lives of older adults is included in this showcase.
Consumer Association of Saskatchewan staff and board members will be available to answer your questions, and provide a variety of handouts including our newsletters. We find Spotlight on Seniors an excellent means for gathering information regarding current consumer issues of concern.
SaskWatch Fall 2025
Published by:
Consumer Association of Saskatchewan
Contributors:
- Billie Sarcauga
- Lou Hammond Ketilson
CASK Board of Directors
President: Lou Hammond Ketilson
Vice-President: Patricia Lewis
Secretary: Courtney Pickard
Treasurer: Koby Kelln
Check us out on Facebook:
facebook.com/ConsumerSask/
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@consumerassociationsask
Phone
(306) 242-4909
For inquiries and complaints, please call us.
Feel free to email us with any questions or concerns
Mailing Address
Consumer Association of Saskatchewan Inc. (CASK)
P.O. Box 7344
Saskatoon, SK
S7K 4J3
Send us mail at the address above for assistance.
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