The 5 Best Buy Now Pay Later Services For Saving Money On Big Purchases

A buy now pay later (BNPL) service is exactly what it sounds like. It allows you to make a purchase on credit that you then pay off over a predetermined period of time.

While it’s not the right choice for every type of purchase, it’s worth your consideration if you don’t have the funds to make a purchase in full.

The Best Buy Now Pay Later Services

Finding the best buy now pay later services is easier said than done. There are two reasons for this:

• There is a large selection of BNPL products and services to choose from
• The terms and conditions of the agreement vary from one service to the next

Fortunately, we’re here to help you compare BNPL apps that let you pay off medium-sized purchases in quick installments with no interest.

Here is our list of the five best buy now pay later services:

1. Affirm

When compared to other buy now pay later services, Affirm is best for financing large purchases, such as those that are $1,000 or greater.

It’s also a top choice thanks to its expansive vendor network.

Fees: No service fee, prepayment fee, or late fees.

Terms: 3, 6, 12, 24, or 36 months.

Vendor acceptance: Adidas, Expedia, Good American, Goodyear, and Motorola (among many others).

Usability and design: Affirm provides a straightforward, streamlined experience that helps you clearly understand the terms and conditions of your offer. Also, from a design perspective — either on a computer or smartphone — Affirm is simple to navigate.

Customer ratings and reviews: Affirm is consistently ranked as one of the best buy now pay later services.

Interest rates: 0% – 30% depending on the vendor.

Prepayment and late payment penalties: No prepayment and late payment penalties.

Minimum and maximum loan amounts: Borrow up to $17,500.

Credit requirement: Good credit rating required.

Credit reporting: Soft credit check and reporting to Experian.

2. QuadPay

QuadPay is unique in the way that it’s available for use both online and when making in-store purchases.

Rather than use an app, QuadPay takes a different approach. You simply tell the service where you are and how much you need to pay. From there, you gain immediate access to a virtual Visa card.

Fees: Late fees are the only QuadPay fees.

Terms: Four equal payments over six weeks (25% upfront).

Vendor acceptance: Shop anywhere, but also use the app to find vendors such as New Republic, Costco, and Hello Fresh.

Usability and design: It doesn’t matter if you’re using the website or QuadPay app, it’s easy to navigate in a short period of time. The design allows you to quickly move through the process without any distractions.

Customer ratings and reviews: QuadPay is a popular choice among consumers, with ratings and reviews among the best in the industry.

Interest rates: Quadpay offers interest-free installment payment plans.

Prepayment and late payment penalties: $5, $7, or $10 depending on your state of residence.

Minimum and maximum loan amounts: Quadpay charges 25% at the time of purchase, with the maximum based on your credit rating, payment history, and how long you have been a user.

Credit requirement: Good credit rating required.

Credit reporting: Soft credit check and no reporting directly to credit bureaus.

3. AfterPay

AfterPay is a traditional service designed for a variety of buy now pay later products. With a pay in four model, you pay 25% upfront and the remaining three quarters every two weeks.

One of the primary differences between AfterPay and other repayment plan services is that it’s generally geared toward luxury items.

Fees: There are no fees when you pay on time.

Terms: Four equal payments over six weeks (25% upfront).

Vendor acceptance: Tory Burch, Steve Madden, Flight Club, Native Shoes, and Jimmy Choo among others.

Usability and design: Using AfterPay is simple both online and via its app. A no-frills design allows you to search in a fast and efficient manner.

Customer ratings and reviews: AfterPay doesn’t have as many customer ratings and reviews as other services, but it’s still ranked among the best for consumers who want to make a purchase with a repayment plan.

Interest rates: No upfront fees or interest is accrued.

Prepayment and late payment penalties: Initial $10 late fee, and $7 if the payment remains unpaid 7 days after the due date.

Minimum and maximum loan amounts: Spending limit based on your credit rating, late payments, and how long you have been an AfterPay customer.

Credit requirement: No minimum credit score.

Credit reporting: No credit check (not even a soft pull). AfterPay does not report activity to credit bureaus.

4. FuturePay

Fees: At the end of a billing period, you can pay your balance in full or make a minimum payment and carry the rest of the balance. Doing so results in a charge of $1.50/month for every $50 of carried balance. Also, late payment fees can reach as high as $38.

Terms: There is a monthly minimum payment until your balance is paid in full.

Vendor acceptance: FuturePay has a smaller vendor network than many competitors, but its list still includes the likes of Unlimited Cellular, Crave Mattress, and MAX Watches.

Usability and design: FuturePay is slightly more difficult to use than its top competitors. Fortunately, once you experiment with it a few times, you’ll catch on.

Customer ratings and reviews: FuturePay ratings and reviews are not as strong as the three services detailed above, but they’re far from the bottom of the industry. FuturePay is a step below the top tier, but still a sound choice.

Interest rates: $1.50 for every $50 in unpaid balance.

Prepayment and late payment penalties: No prepayment penalty, but a late payment can result in a fee of up to $38.

Minimum and maximum loan amounts: NA

Credit requirement: Good credit rating required.

Credit reporting: FuturePay does report activity to credit bureaus.

5. Klarna

Klarna has its own take on buy now pay later repayments. In addition to the typical pay in four payments schedule used by many services, Klarna also has a “pay in 30” option.

With this, you owe nothing upfront and then have 30 days to pay your balance in full. Making the full payment allows you to avoid interest charges.

Fees: No service fee, prepayment fee, or late fees.

Terms: Pay 25% upfront and the remaining three quarters every two weeks.

Vendor acceptance: Klarna has a large vendor list with the likes of Nike, Sephora, and Macy’s on board. Also, Klarna offers exclusive deals through vendor partners.

Usability and design: Klarna’s usability and design is industry-leading, especially when it comes to its app. It was designed from the ground up for consumers on the go.

Customer ratings and reviews: Klarna ratings and reviews are competitive with every other buy now pay later service.

Interest rates: The Annual Percentage Rate (APR) for standard purchases is 19.99%. However, you always have the “pay in 30” option to avoid interest charges.

Prepayment and late payment penalties: No prepayment penalty, but late fees can reach $7 per installment.

Minimum and maximum loan amounts: Klarna does not allow you to see what your credit limit is.

Credit requirement: No minimum score required.

Credit reporting: Klarna does not report activity to the credit bureaus, but there are times when the company may pull your credit.

Frequently Asked Questions (FAQs)

With the above information, you now have what you need to compare buy now pay later services. Even so, you may have some questions. Here is a handful of the most common:

Is this the same thing as a personal loan or payday loan?

No. Not only is this a shorter term, but finance charges are not nearly as high as with a personal loan. And when compared to a payday loan, the fees and finance charges are much lower.

Are these services reputable?

The services above are reputable, but that doesn’t mean that every other company in this space is worth your consideration. Be careful not to fall prey to a BNPL scheme.

For instance, a BNPL scheme may draw you in just to charge you a high rate of interest on your purchase.

If you want to avoid a buy now pay later scheme, stick with the five services in this review. Don’t take the risk of a buy now pay later scheme taking a toll on your finances.

How much is your monthly payment?

This varies based primarily on the amount of your purchase. For example, your monthly Installments payment will be lower with a $500 purchase than a $1,000 purchase.

Can you change your buy now pay later repayments?

This depends on the service you’re using and the terms and conditions you agreed to. If you’re unable to keep up with payments for any reason, contact your provider for more information.

They may allow you to change your monthly installment to a fortnightly payment. Or perhaps you need to change your fortnightly payment to something slightly longer.

As you compare services, consider which one has the most flexible payment option. This can help you make a more informed decision.

Final Thoughts

If you want to pay for a purchase in monthly installments, a BNPL service may be just what you’re looking for.

From flexible payment options to low interest rates and no fees, there are many good reasons to give a buy now pay later service your full attention.