Many retailers partner with buy now, giving consumers 0% interest instead of paying the option to pay later providers at once to repay the cost of the product in equal installments (often 0%). With these apps, you can apply at the point of sale and, if approved, select a repayment option to complete your purchase.
A BNPL plan can be a great financial tool to help you budget large expenses that you don’t have enough cash to pay. But they make it easier to buy things you don’t need.
Pay for Best Buy Now, Later App
| App | It’s perfect for | Bankrate score |
|---|---|---|
| positive | Quick on-the-spot decision | 4.8 |
| afterpay | There is no minimum purchase amount | 4.4 |
| PayPal | Payment for the widest range of products | 4.7 |
| Sezul | A profitless plan for small purchases | 5.0 |
| Zip | Buy straight and pay for later plans this time | 4.5 |
Affirmation: Best quick and easy purchase now, pay for later options
Buy Affirm now. You will pay for the later options. Accepted by thousands of retailers across the country, four installed payment plans are interest-free. Larger ticket items have longer repayment periods available, but depending on the credit, interest rates can reach 36%.
AfterPay: There is no minimum loan amount
Buy Afterpay now. Pay the app after which there is no minimum advertised. This is useful if you need a little extra time to pay off a small purchase. You can pay in 4 interest-free installments over four weeks. This plan can be used for online purchases and retailers participating using virtual cards.
AfterPay also offers a 24-month repayment schedule for purchases over $100. However, based on your credit profile, you will pay an annual rate (APR) of up to 35.99%.
PayPal Pay in 4: Perfect for a wide range of merchants and products
PayPay Pay can be used with 4 to split up purchases between $30 and $1,500, making them even more affordable. Sellers who offer PayPal can offer this option and have access to more products that can pay for payments in the four programs.
The initial payment is made at the point of sale, with the remaining three being paid every other week. This payment option does not include sign-up fees or interest fees and does not qualify for the customer for late fines. You need more time and don’t worry about paying interest rates between 9.99% and 35.99%. The monthly payment option offers between 3-24 months to spread payments.
Sezul: Best Profit Plan for Small Purchases
Sezzle is the only purchase now. Pay after reviewing apps that offer a two-week repayment period with a low purchase price of $10. If that doesn’t fit your budget, you can choose the standard 4 pay 6 week option offered by other BNPL apps. If you need more time, you can choose a 48-month period, assuming you are eligible for the APR offered based on your credit score.
zip: Perfect for simple purchases now, pay later plans
Zip only offers four payment plans that allow you to spread your payment plans over six weeks. If you’re underpaid, but need to fill up your gas tank or buy groceries, Zip’s maximum fee of $7.50 is much cheaper than Sky-High’s APR you pay for your payday loan. There are no other options that will help you avoid the temptation to spread small costs over a longer period of time.
Pros and cons of buying now, pay later app
According to Bankrate’s Buy Now, a later survey shows that almost a third (30%) of US adults use at least one BNPL service. Unfortunately, the same survey showed that about half of users (49%) experienced at least one problem with the BNPL service.
Evaluating the benefits and drawbacks can help you determine if this type of payment plan is best suited to your current budget and long-term financial goals.
Strong Points
Consumers primarily choose to buy, but pay for later plans for two reasons.
- It helps them manage their monthly cash flow: Because inflation exceeds wages, Americans may be wary of paying cash at once for purchases. By spreading your purchases over six weeks, you can keep more money in your account in between payrolls.
- There is no interest: Unlike credit cards, if you are unable to repay your balance immediately, you will not risk a decline in your interest or credit score. Given that credit scores are not a factor in most cases, approval may be easier than credit cards or personal loans.
Cons
Despite the streamlined application process and simple payment plans, these apps have their drawbacks.
- Easily overexpenses: Buy now and later plans can blur the line between needs and desires. You may make purchases that will put a strain on your budget and will likely regret items you don’t need.
- Returning items is more complicated: If you decide to send back items you purchased with your BNPL plan, you will need to jump over more hoops and get back your money as you didn’t pay directly to the retailer. To make the problem more complicated, each BNPL company has a different process and timeline for returning money.
How to compare apps
When evaluating a purchase now, consider the following factors to find the best option for your later app:
- availability: Check if the app is available online and in stores, and whether it is restricted to either. Also, look into whether it can be used with retailers who shop.
- Delivery output: Check if the BNPL company you are considering has set expenditure limits. If so, check if your expenditure can increase over time.
- Subscription and transaction fees: Some apps require a subscription fee to shop for a specific brand. Question whether your app is worth the extra cost. Also, look for late payment fees.
- Credit Report: Find out if late or on-time payments are reported to the main credit department.
- interest rate: If you choose a longer repayment period, check out the fees for similar apps and other funding options.
- Repayment terms: Some BNPL plans have multiple plans. Look at your budget and make sure you’re doing your best for your budget.
- Refund Policy: The amount of time it takes to return, how quickly the spending power is returned, and the process of returning items can affect whether or not you use a particular BNPL company.
When using Buy Now, pay later app
The best time to use Buy Now is whether you need to pay later and cover the costs of your needs without cleaning your checking account. This includes going back to school for growing kids, new sets of winter tires, or new microwaves when the current ones start to move away from so many uses.
- You don’t have cash to pay the full cost now: If your emergency funds are low, or if you need a few extra weeks to buy before your next paycheck, BNPL can help.
- You can avoid using credit cards. The average credit card fee is above 20%, and maximizing them can have a negative impact on your credit score. Most BNPL plans are interest-free and you will repay your purchase in 6 weeks.
- I do not qualify for low credit cards or personal loan fees: Eligibility is much easier than a personal loan or credit card, as these plans are generally for the purchase of dollars.
Instead of buying now, pay for later apps
Always explore other ways to borrow money before you buy now and pay for the later app.
- Personal loan: This installment debt product offers extended repayment periods and affordable monthly payments. The highest personal loan interest rates are sent to people with strong credit scores, and are as low as 8%. However, if you need a credit, you can pay as much as 36%.
- 0% Interest Credit Card: You can purchase with a 0% APR credit card for interest-free purchases during the promotional APR period (usually 12 to 24 months). However, make sure you pay your balance fully before it expires. Alternatively, you can pay interest on the remaining balance.
Conclusion
Buy now and pay later to reduce financial stress if you need to buy, but don’t get cash to pay everything at once. In many cases, the application process is seamless and if approved, you can start purchasing immediately.
For the best deal, compare options before deciding which app to use. Consider whether a purchase is something you want, but if a funding alternative, such as a personal loan or a 0% interest credit card, has a better fit, or if you can do so.
