Half of shoppers are relying on BNPL this holiday season, but here are 3 alternatives

If you're planning on using buy now, pay later (BNPL) to cover your holiday shopping this year — and half of shoppers are, per PayPal — know that there are alternative financing options out there offering similar flexibility.

While BNPL helps you pay for things over time, it can encourage overspending and it doesn't offer the same protections or perks as credit cards. Here's what else you can use to make your holiday spending easier.

Do you like the idea of breaking up payments the way BNPL offers? If so, a 0% APR credit card can be a smarter alternative — especially if you're disciplined about paying on time.

With BNPL, your payments are split typically over a short period, like six weeks, but you don't get the same consumer protections and perks you would with a credit card. A 0% APR credit card, on the other hand, gives you the flexibility to spread out your holiday purchases interest-free for a much longer period — often 12 to 18 months — while also offering their usual benefits like purchase protection and the ability to earn rewards.

For example, the no-annual-fee Wells Fargo Active Cash® Card offers an intro APR for 12 months on new purchases and qualifying balance transfers (then 18.49%, 24.49%, or 28.49% variable APR), plus cardholders earn an unlimited 2% cash rewards on their spending. There's also a welcome bonus of $200 cash rewards after spending $500 in purchases in the first three months.

Another no-annual-fee card, the Chase Freedom Unlimited® (see rates and fees) has an intro APR for a little over a year, 15 months, on new purchases and then a variable APR of 18.24% - 27.74%. There's a welcome bonus, earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. Cardholders earn 5% cash back on travel purchased through Chase Travel^SM, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 1.5% on all other purchases.

With a 0% APR card, you'll get a single monthly statement, and as long as you pay at least the minimum on time each month and set yourself up to pay off the full balance before the 0% period ends, you'll avoid interest entirely.

Many credit card issuers have their own built-in, pay-over-time programs, which allow you to split eligible purchases into smaller payments directly through your credit card account. Opting to do this sort of similar BNPL format through your credit card ensures you still earn rewards and keep your spending organized all in one place. Just make sure you read the terms and conditions regarding any interest or fixed monthly fees. This may only be allowed on eligible purchases, too.

Chase, for example, offers Chase Pay Over Time® to eligible cardholders, giving them the option to break up eligible credit card purchases into fixed monthly payments, and they still earn their normal spending rewards. For past purchases, there's no interest but a fixed monthly fee. When used at checkout at participating merchants, there's a fixed interest rate that applies.

While this is essentially another "form" of BNPL, your payments are instead in one place and you're still earning credit card rewards and perks. There's a Chase shopping portal, for instance, that you can take advantage of to earn extra rewards when doing your holiday shopping online, and score special offers.

Of course, there's the good old-fashioned way of saving up for your holiday purchases to avoid BNPL altogether.

We know it's already mid-November, so it's important to pinpoint what actually you want to buy, the total cost and your timeline. Divide that total by how many weeks you have left and you have your weekly savings goal. Deposit that cash into a high-yield savings account, where you earn more interest than in a traditional savings account. Both the EverBank Performance Savings and UFB Portfolio Savings offer competitive rates and no monthly fees.

And since you don't have a long savings runway, you can also free up some cash by canceling subscriptions for a few months (think streaming, apps, gym, etc.), cooking at home and delaying any outside big purchases.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every BNPL article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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