42% of Consumers Believe Using an Installment Credit Product Will Boost Their Credit Score

Most consumers want to increase their credit scores, and they cite several reasons for their interest in doing so.

Thirty-four percent of consumers cite a lower interest rate as the most important reason for being interested in improving their credit scores, according to The New Credit Model, a PYMNTS and Sezzle collaboration that surveyed 7,024 American consumers.

Get the report: The New Credit Model

Other reasons that at least one in 10 consumers cite for wanting to improve their credit scores are emergency support, better credit products and borrowing for big purchases.

Consumers also take several approaches to improving their credit scores. Chief among them are opening a new credit card and using an installment credit product. Each of these are cited by about four in 10 consumers.

Other ways to boost credit scores include taking out a personal loan and taking out an auto loan, approaches that about three in 10 consumers said they believe will improve their credit scores.

Forty-two percent of consumers who think taking on new debt will improve their credit scores believe that an installment plan credit product linked to their debit cards that is used to make a purchase and pay it off in three to four scheduled monthly payments will improve their credit scores.

Such an installment plan is seen as a more viable credit-repair option than taking out a bank, auto or home loan.

Those are several reasons that the popularity of buy now, pay later (BNPL) keeps growing.