MoneyLife

Best Buy Now Pay Later Apps (No Fees!)

By Grace Kilander
best buy now pay later apps

Are you considering downloading a buy now pay later app? A host of retailers have been partnering up with pay later apps and it might seem tempting to buy everything in your cart on “credit”. They can seem like a practical, budget-friendly way to get the products you want. Plus, many claim to be interest-free.

Since shop now pay later apps are relatively new, not many people understand how they work or even what they entail – especially when it comes to your credit score. Before you download a buy now pay later app, make sure you read our guide on all the ins and outs.

Plus, we’ll go over our safe, zero-interest buy now pay later alternative, Instacash!

What is a buy now pay later app?

A buy now pay later app allows you to make purchases while only paying a small portion of the bill upfront. You’ll receive your merchandise now and pay off your bill through regular installments – which can be weekly, bi-weekly, or monthly. 

A buy now pay later app makes it easier for consumers to make larger, more expensive purchases they wouldn’t normally be able to afford. When the bill is broken up between several installments, laid out over a set period of time, it becomes easier to manage. 

How does a buy now pay later app work?

Essentially, many buy now pay later apps work similarly to a credit card. The main difference is that most buy now pay later apps offer interest-free periods. If you make all your installment payments on time, you won’t be charged interest. 

However, if you miss payments or if you’re unable to pay off what you owe, you will end up being charged interest on your remaining balance. The interest rates on buy now pay later apps can be very high. Plus, you’ll risk hurting your credit score

Does a buy now pay later app impact my credit score?

The specifics vary according to each buy now pay later app, but most will pull your credit. However, most buy now pay later apps won’t report your on-time payments to credit bureaus, but some will report late payments. As a result, buy now pay later apps won’t improve your credit score, but they can bring it down.  

Are buy now pay later apps interest-free?

It depends. Most offer interest-free periods during your installment payment terms. During this period, if you make your installment payments on time, you won’t be charged interest. However, if you forget to make a payment or don’t have enough funds, you risk being charged interest rates and late fees. 

Are there late fees with a buy now pay later app?

Almost every buy now, pay later app charges late fees or deferred promotion fees for missed payments. These are oftentimes flat fees that can add up and become increasingly expensive.  

We hope this article helps you pick the right buy now pay later app.

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