Have you ever needed something in the moment but didn’t have enough cash to buy it immediately? Did you know that you can pay for purchases like these with installments?
There are many different sites that offer this kind of installment-based service, one of which is MoneyLion’s Overtime. As a growing marketplace with many companies competing for everyone’s business, installments are a great alternative.
We want everyone to make the best decision possible when looking for ways to buy now and pay later. Let’s take a closer look at the concept of sites like afterpay and introduce you to the best buy-now-pay-later solution!
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Understanding the concept of buy-now-pay-later services
Buy-now-pay-later services are similar to loans from a bank, a business, or a person. With loans, a lender provides money to someone who must then pay that money back within a predetermined period of time.
Loans are often paid back in the form of regular installments, which are most often planned out monthly. The borrower is also charged interest on the money that they initially borrowed.
Buy-now-pay-later sites are growing rapidly in terms of popularity. They operate in a similar manner to loans from lenders except some come without the high-interest aspect. However, if you miss a payment or fail to pay your installments, then you will accrue additional charges.
The sign-up process generally starts with approval, which is required by the buy-now-pay-later company to ensure that the borrower is trustworthy and will pay them back, just like banks do prior to approving you for a mortgage, an auto loan, or a personal loan. This process is what’s known as a credit check.
The company offering the loan will only accept a debit card as a method of payment from the borrower once the approval has been granted. The customer can swipe their card at the desired store and boom! Just like that, you’ll pay later.
It is not like a credit card because your first payment might not be due until a month or so after the purchase is made. But let’s look more closely at credit checks because there are two different types and it’s important that you understand the difference.
What is a hard credit check?
When you apply for a loan, your credit report will be checked, meaning your credit score will be obtained and analyzed by the lender. A credit check can possibly leave a negative impact on your score depending on the information gathered and the intensity of the check. Hard credit checks are the type of credit check that lowers your credit score. They are conducted when you apply for new loans, apartment rental applications, and credit limit increases.
What is a soft credit check?
Soft credit checks will not be reflected on credit scores as it generally is not analyzed quite like a hard credit check. These kinds of credit checks should never impact a credit score. Soft credit checks are often used for pre-approvals and account reviews by current creditors.
What to look out for with buy-now-pay-later services
Make sure to check out which retailers the company is partnered with because some of these buy-now-pay-later services are only available at a minimal number of stores.
Be sure to understand the penalties if you happen to miss a payment, too. Many of these sites inflict major consequences if a payment is late or goes unpaid.
Overtime: MoneyLion’s buy-now-pay-later alternative
MoneyLion’s Overtime service is the best alternative to Afterpay. It has yet to officially launch, but when it does, it is going to take the world by fire.
What is Overtime?
Overtime provides a 0% APR installment loan of up to $600. Overtime is designed to help you pay for eligible purchases with your MoneyLion Debit Mastercard® over a period of four installments. The service will come without any interest, and there are no monthly fees required to use Overtime!
Overtime loans are set to have an annual percentage rate (APR) of 0%. It will require a soft credit check, but soft credit checks do not negatively impact your credit score.
How do I get Overtime?
Overtime is currently available to customers on an invite-only basis. People who are invited to try out Overtime will receive an email that gives them the opportunity to try out the new product.
If you received an invite, start by going to the Loans tab. In the Marketplace section, tap on Overtime. Go to the Accounts tab, click on RoarMoney, and scroll until you see the section for Overtime.
Press on the push notification that appears after you use your MoneyLion Debit Mastercard® or RoarMoney virtual card to make an eligible purchase. And there you go! Your first purchase with Overtime is complete!
To qualify for Overtime, you will need a RoarMoney account with a positive balance. You’ll also have to have made eligible purchases using your MoneyLion Debit Mastercard as well as pass our underwriting and identity verification checks.
How much does Overtime cost?
At this time, Overtime is available to our customers on an invite-only basis. Overtime is free of cost, meaning it comes with no monthly fees and no interest.
You might have the option of deferring the scheduled due date for one or two installment payments, but it will depend on the frequency of your scheduled payments. You will incur a fee per deferred payment, which will be added to your next scheduled installment payment. Also, late fees will be applied to your next installment if a payment is missed.
Does Overtime have hidden fees?
No. Overtime does not have any hidden fees. It is a zero-fee installment loan.
How soon will I receive my Overtime funds?
If you have been approved for Overtime, you will receive funds in less than 30 minutes after completing the application. MoneyLion also offers Early Payday, which provides you with the opportunity to get paid up to two days early when you set up direct deposits and have the money deposited into your RoarMoney account.
Why work overtime when you can use Overtime?
There is nothing quite like an easy $200 loan and with MoneyLion’s Overtime, securing loans like this on a regular basis is simple! Buy-now-pay-later sites are going to continue to grow immensely over time. Why not be part of the surge by signing up for the waiting list and start using Overtime.
Frequently Asked Questions
Which pay later app is best?
MoneyLion’s Overtime will be the premier buy now pay later service once it launches. It is set to provide far more benefits than the more expensive competitors. Some of these benefits include 0% APR and no hard credit checks.
How long do hard checks stay on your credit report?
Hard checks will stay on your credit report for two years before they disappear.