Large purchases can be a brutal hit to your wallet.
But what if you could split a single purchase into multiple small payments?
But is Afterpay as good as it sounds, or is it too good to be true?
What Is Afterpay?
Afterpay is a buy now, pay later service.
If you have a large purchase, Afterpay can likely split it into smaller, more manageable payments.
you might shop online or at supported in-store locations.
Somein-store Afterpay partnersinclude PetSmart, Bed Bath & Beyond, Sephora, Urban Outfitters, DSW and Nordstrom Rack.
Check Afterpays website to find supported retailers near you.
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This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you might easily return later.
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How Does Afterpay Work?
Afterpay makes the purchasing process easy.
We recommend beginning your purchase bydownloading the Afterpay app.
The app will let you view your approved purchase limit and shopping discounts.
From here, nudge the Create an Account button.
You will need to provide personal information to complete the process.
Once signed up, you might navigate the My Afterpay tab to view your preapproved spending limit.
Unlike some of our favorite services, Afterpay limits your purchases to approved shopping partners.
it’s possible for you to discover supported stores and websites by checking the Shop tab.
you’re free to search out your favorite retailers using the search bar.
Did you know?
You may need to verify your account information and add a bank account or debit card.
Afterpay will not have any effect on your credit score or report to credit bureaus.
Additionally, no minimumcredit scoreis required.
Begin by tapping the Set up the Afterpay Card button and following the instructions.
you might then use the virtual card viaApple PayorGoogle Payto make your in-store purchase.
Afterpay Financing and Fees
Afterpay purchases are split into four payments, payable every two weeks.
At checkout, you will be responsible for the first payment (consider this the down payment).
There is no service fee to use Afterpay, and purchases are financed interest-free.
The only fee we could discover with Afterpay is a late fee if you miss a scheduled payment.
Within the United States, late fees are capped at 25% of the order value.
Once you miss installment payments, Afterpay will stop approving purchases to avoid you plunging further into debt.
Additionally, Afterpay may prevent people from purchasing too much by denying purchases.
you’re able to reschedule Afterpay payments if needed.
However, it may not be the right choice for everyone as its not available at every retailer.
Here are a few other services you may want to consider.
Different options have popped up to offer a short-term, no-interest payment method.
Those options includeAffirm,Klarna,PayPalandSezzle.
Another option for large purchases is a zero-interest credit card.
The Pros and Cons of Afterpay
There are several pros and cons to Afterpay.
Here are some of the biggest ones.
Frequently Asked Questions (FAQs)
No, using Afterpay will not affect your credit.
Afterpay does not affect your credit score or credit rating, as the company does not report late payments.
Afterpay also will not perform a credit check with credit bureaus when you sign up.
Afterpay is a free-to-use service.
The only fees we found associated with Afterpay are late fees.
Afterpay does not charge interest.
The maximum limit for each individual using Afterpay may be different.
The maximum approval limit that anyone may receive on Afterpay is $2,000.
Afterpay can be used only with partnered retailers across the United States.
For a complete list of approved retailers, visit theAfterpay website.
Michael Archambault is a senior writer for The Penny Hoarder specializing in technology.
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