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. For example, MoneyLion Overtime only requires a soft credit pull, which won’t hurt your credit score dramatically. 

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 buy now pay later apps, like MoneyLion’s Overtime, 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.  

Buy now, pay later with Overtime by MoneyLion

Our newest financial feature is our interest and monthly fee-free buy now pay later feature Overtime. When you make eligible purchases of up to $600 when using your MoneyLion Debit Mastercard, you’ll be able to pay back in 4 equal installments with no interest. 

At this time, Overtime is on an invite-only basis. Once you receive an invite, you can access Overtime through the MoneyLion app. Can’t wait to use Overtime? Join our waitlist and get in the inside scoop on when Overtime is available to all! 

In the meantime, If you’re looking for another zero-interest alternative to pay later apps – Try Instacash! It’s an affordable and credit-friendly solution for getting extra cash in your wallet. 

What is Instacash?

Instacash is a cash advance from MoneyLion that lets you access extra funds. You simply connect your bank account with direct deposits or set up direct deposits into your RoarMoney bank account. From there, you’ll see how much Instacash you’re qualified to use. 

Instacash features a host of benefits over leading buy now pay later apps, including:

  •  0% interest 
  •  No credit check
  •  Zero impact on credit score
  •  Secure, easy, fast
  •  No monthly fee 
  •  Up to $250 in minutes

Get your paycheck up to 2 days earlier with RoarMoney

Anytime you borrow money, like using a buy now pay later app, make sure to exercise caution about how much you can afford to pay back and stay on top of payments. 

In the meantime, use MoneyLion for top-banking tools that help you get the most out of your finances. From investing, borrowing, credit help, and cash advances, there’s something for everyone. Plus, when you set up direct deposits to your RoarMoney bank account, you could receive your paycheck up to 2 days earlier!

Sign Up For Instcash and Get Up to $250 in Your Account Today!

Sign Up
Sign Up

Get cash fast, pay no interest

Enjoy Instacash advances up to $250. No credit check, no monthly fee, no interest. Just cash.

Sign Up