Splitit Review: How It Works, Fees and Is It Worth It?

Splitit is a buy now, pay later (BNPL) platform that allows customers to divide purchases into installments using their existing credit cards. Instead of taking out new financing — such as personal loans — customers can choose a repayment timeframe that fits their budget while continuing to use their credit card. Find out if Splitit could be a good fit for you.

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Quick Take

• Splitit partners with major payment networks, including Visa, Mastercard and Discover, allowing shoppers to use their credit cards for installment payments.

• It encourages sound management of large expenses without irresponsibly taking on too much debt or falling into bad spending habits.

• If you're unfamiliar with short-term borrowing tools, it may help to understand what a cash advance is and how those products differ from BNPL services like Splitit.

What Is Splitit?

Splitit is a global BNPL company founded in 2012. The company operates internationally, with offices in the United States, Australia, the United Kingdom and Japan. Its platform allows shoppers to split purchases into installments using their existing credit cards, giving consumers flexible payment options without interest.

How Splitit Works

Here’s a look at how Splitit processes purchases and turns them into installment payments.

Installment Structure

Splitit works with your existing credit card. You choose how long you need to make the installment payments. No interest or late fees will be charged as long as you make your credit card payments on time.

Credit Hold

Splitit places an authorization hold on the full amount of your purchase. This credit card hold is temporary. Because of the hold, you must have enough available credit when you make the purchase.

For example, if you want to make a purchase of $700 and make seven installment payments, your credit card will have a hold of $700.

Funding and Approval

Splitit checks your available credit on your card to approve your transaction.

Splitit Costs and Fees

There are no costs or fees to use Splitit. While Splitit itself is interest-free, keep in mind that any balances carried on your credit card are still subject to your bank's standard annual percentage rate (APR) and fee schedule.

Splitit Eligibility Requirements

To be eligible to use Splitit, you’ll need to meet the following requirements:

• At least 18 years old

• Have a Visa, Mastercard or Discover credit card — debit cards not eligible

• Have enough available credit on your card

• Shop at a retailer that accept Splitit

Pros and Cons of Splitit

Before using Splitit, it’s helpful to understand both the benefits and potential drawbacks.

How To Use Splitit

Splitit is simple to set up and use. You can follow these steps:

1. Shop at a retailer that offers Splitit.

2. Add your items to the cart and select Splitit as your payment method at checkout.

3. Choose the number of monthly installments you want for your purchase.

4. Enter your credit card details. Splitit will put a hold on the full purchase amount.

5. Your first installment is charged immediately, and the remaining payments are billed each month.

Splitit vs. Other BNPL Apps

To see whether Splitit is the right fit, it helps to compare it with other BNPL services.

Afterpay

Splitit never charges interest or late fees, while Afterpay customers may face a fixed late-payment fee. Splitit also offers more flexible installment options, whereas Afterpay splits purchases into four payments and offers monthly financing.

In addition, Splitit is a smaller company compared with Afterpay, which has a broader merchant network and a stronger presence in markets such as the United States.

Sezzle

Sezzle is a BNPL platform that splits purchases into installments. Splitit, on the other hand, works more like a credit card management tool that allows shoppers to continue earning credit card rewards.

Sezzle may also help build credit because it reports on-time payments to all three credit bureaus, while Splitit does not offer the same credit-reporting feature.

Who Splitit Is Best For

Splitit may be a good option for people in the following situations:

• Those want to maximize their credit card rewards and points

• Those financing larger purchases

• Those who want to avoid a hard credit pull

• Those confident they can pay their credit card bill balance on time

Final Take

Consumers should try to avoid taking on too much debt in order to maintain healthy finances. However, Splitit can make larger purchases more manageable by allowing shoppers to divide them into installments. As long as purchases stay within available credit limits, Splitit may be a useful BNPL option for one-time purchases.

Shoppers who need smaller amounts of money quickly may also want to compare cash advance options with BNPL services.

Splitit FAQs

Here are answers to common questions about Splitit and how its installment payment platform works.

Is Splitit legitimate?

Splitit is a legitimate BNPL company that works with several reputable merchants. It has received an A+ with the Better Business Bureau.

Does Splitit check your credit?

Splitit doesn’t check your credit.

Does Splitit charge interest?

Splitit doesn’t charge interest or fees. However, Splitit charges your credit card and you may have to pay interest or fees on that account.

How does the credit hold work?

When you make a purchase, Splitit puts a hold on your credit card for the total amount. As you pay each month, the hold amount will become smaller.

Can Splitit hurt my credit score?

Splitit doesn’t report your late payments to credit bureaus. However, because Splitit places a credit hold on your credit card, your debt utilization may appear high. Your score may drop temporarily until you pay off the balance.

What credit cards work with Splitit?

Visa, Discover and Mastercard all work with Splitit.

David Granahan contributed to the reporting for this article.

Photo credit: mediaphotos / iStock