Buy now, pay later apps enable shoppers to make purchases they may not be able to afford otherwise.
Buy Now, Pay Later Services Compared
What Is a Buy Now, Pay Later App?
Sometimes significant expenses occur andyou may not have planned for them.
Other times, you may want to reward yourself with a purchase you cant afford all at once.
While most services support only select retailers, some options enable purchases nearly anywhere.
We examined features of five apps to help you find the best choice for your purchasing needs.
No Interest Til Almost 2027?
However, not every option is interest-free, so it is vital to know the differences between payment plans.
Any service that offers monthly payment installments will force you to pay interest on your purchase.
Monthly payment installments are available via Affirm, Klarna and PayPal.
The services we examined charge interest ranging from0% to 30% APR depending on your approval.
Klarna potentially offers the best interest rate, capping itself at 25%.
Did you know?
After that, you will owe an additional three charges every two weeks via your bank account.
Affirm, Klarna and PayPal also offer more traditional monthly payments, but they will charge interest.
PayPal offers the most extended financing option, with monthly payments split up to 24 months.
More typical offerings span from six months to a year.
Klarna charges the highest late fees for monthly payments at a whopping $35.
If youre worried about late fees, stick with Affirm or PayPal.
AfterPay, Sezzle and PayPal require you to shop with retail partners if you want to use their services.
Affirm and Klarna break that mold, allowing you to shop at any online store.
Alternatively, it’s possible for you to visit the websites of the buy now, pay later services.
Which Buy Now, Pay Later Service Is Best for You?
Our favorite buy now, pay later app for most shoppers is Affirm.
The financial service offers monthly and interest-free Pay in 4 financing.
The monthly interest rate with Affirm is competitive with other services but is higher than potential offerings from Klarna.
Additionally, Affirm has no late fees.
All buy now, pay later services offer Pay in 4 financing options to pay over six weeks.
Do keep in mind that Affirm may report payment history to Experian.
Out of the buy now, pay later apps weve researched, only three options provide monthly purchase payments.
Amazon does not partner with any specific buy now, pay later service.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…