![]() Zip has one product that's similar to Afterpay: consumers can make a purchase and pay it off in four interest‑free installment payments over six weeks. Zip is a good choice for consumers who want to use a BNPL option wherever they shop, and they don't want it to affect their credit score. Who's this for? Zip, formerly known as Quadpay, is a BNPL service available internationally. BBB gives Afterpay an A- rating based on its own ratings system. Many of the customer complaints focused on canceled orders from the merchant or failure to receive a refund from Afterpay. It had a 1.38/5 average rating based on 98 customer reviews at the time of writing. Much like the other POS providers in this round-up, Afterpay has poor customer service reviews on the Better Business Bureau website. Whenever you use the app, you'll be given a one-time virtual card. Afterpay also offers some consumers the ability to use the app to make purchases at select retailers such as Nike, Kroger, Amazon and Macy's. When it comes to availability, Afterpay can be used at more than 100,000 merchants around the world including American Eagle, Bed Bath and Beyond and lululemon. If you fail to make a payment, you won't have access to the platform to take out a new loan until you make a payment. You'll be hit with an $8 fee, or 25% of your transaction, whichever is less, for each late payment. One major advantage of using Afterpay, over other POS providers, is that it doesn't affect your credit score at all - the company doesn't check your credit score, and it doesn't report any loan information to the credit bureaus.Ī major drawback of using Afterpay are the late fees. A new user will likely have a lower limit than someone with a longer history, so if it's your first time using Afterpay, you might have to stick with purchasing smaller-ticket items. Your credit limit depends on how long you've been an Afterpay customer, and whether you're making your payments on time and in full. There isn't a limit on how much credit you can take out with Afterpay. You make one down payment at the time of purchase (typically 25% of the order) and then pay the rest over six weeks. The company offers one product: a financing option with four installment payments due every two weeks over a six-week term. Afterpay doesn't consider itself a POS loan provider because it doesn't charge interest on its loans, but it is commonly referred to as a BNPL provider so we've included them in this round-up.Īfterpay is best for people who can make their payments on time, need a short-term financing option with 0% interest and don't want the loan to affect their credit score. Who's this for? Afterpay is an Australia-based company that was recently acquired by Square, a digital payment company co-founded by Twitter CEO Jack Dorsey, for $29 billion. Your payment history, how much credit you've used, late payments and how long you've had the credit line open can affect your credit score. It doesn't report 0% four-biweekly payment loans or 0% loans with a three-month repayment period. It also reports some loans to the credit bureau Experian. Though if you're late with payments, you might not able to get a loan from Affirm in the future, and it could potentially affect your credit score.Īffirm uses a soft credit check when approving consumers for loans. Of the seven BNPL providers Select reviewed, Affirm was one of three providers that didn't charge any late fees. If you manage to secure a 0% loan, you also don't have to worry about late fees. However, the interest rate that you manage to secure on your loan depends on a variety of factors - including purchase amount, length of payment term and the merchant - so you could end up with an APR as high as 30%. Affirm is one of the few BNPL providers that offers consumers long-term financing options with a 0% APR. It offers POS loans ranging from 1 month to 48 months with a limit of $17,500 per loan. Who's this for? Affirm is a good choice if you need a longer-term financing option with a 0% APR and no late fees. ![]()
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