Buy now pay later (BNPL) is making its space in millennial world, as a tool to buy goods like expensive phones, clothes, accessories and even home appliances. We all have things on our list to buy. We want to be up-to-date, be it a new phone or a new appliance in the kitchen, but on a budget. How perfect it would be to buy them, without pushing ourselves?
There are several companies here to the rescue. Some corporates have come up with an idea to let people buy things with their money and let them pay in installments and with an interest next to nothing. Some of these companies are PayBright, Zip, AfterPay and more. We will be discussing them in this article further about how they work. But first, let us see what is so special about buy now pay later?
Buy Now Pay Later Is Interest-Free!
I bought the latest model of iPhone 13 Pro Max last month. It was like holding a dream in my hands. If you are a tech buff then you know how it feels to hold the latest piece of technology in your hands. I paid the taxes up front and everything else was by default set on a monthly payment for 24 months. I just had to add my card details and forget about it. And it is all interest-free! Awesome, Isn’t it? Now I have a Phone I wanted and I don’t have to pay all at once or get into a contract with the sim card provider, which would have haunted me all the time otherwise.
Buy Now Pay Later Is An Open Loan.
When you are buying anything with a BNPL (Buy Now Pay Later) plan, then you have an option of paying a part of the outstanding amount you owe. You do not have the obligation to keep paying the fixed monthly payment. You can just start with monthly payments and whenever you feel comfortable with the amount of your choosing, Just pay it. It is good to pay off debts sooner than later.
You Can Buy Almost Anything Using Buy Now Pay Later.
There are lots of companies that facilitate their customers with BNPL. From fashion to electronics almost all the major commodities we use in our daily life can be bought using BNPL. You can buy gym equipment and decide how many payments you want to make ranging from 4 to 60 months. Some BNPL partners allow 4-6 months and some allow more than that. It is just a matter of who you wish to create a payments plan with.
Your Credit Score Is Not Affected.
When you are buying a car or when you buy anything that may involve a bank or a money lending company, they usually make a hard credit enquiry on your account and that affects your credit score severely. Whenever there is a hard credit check, your credit score drops approximately 5 points. But When BNPL companies make a credit enquiry they don’t affect the credit score, it is usually a soft credit check . Sometimes they don’t even go looking for your credit report. So keep in mind to pay back and buy away!
Which Are Some Of The Buy Now Pay Later Companies.
There are different companies which allow us to avail buy now pay later in Canada. You can choose any one or you can use all of them. It doesn’t make any difference which one you choose as long as you are able to pay it off. Let us have a look at some examples of Buy now pay later web apps.
- PayBright By Affirm.
Paybright is one of the most prominent companies that offer BNPL to its customers and their merchant partners are of a stronger presence. You can buy almost anything using PayBright. From Endy Mattress to Hudsons Bay Clothes, Browns Shoes and Mobile phones by Samsung and Apple. Ample choices to make.
2. Sezzle
Sezzle is an E-commerce website in itself. There is a women’s section, a men’s section, they even have a kids’ section, and lots of stores to choose from. You can add filters to the website with a lot of categories and choose to buy from any specific suppliers. You can choose from small businesses and you can choose from the businesses with a specific ethnicity if you wish to do so. You have the option of paying back in installments up to 10 months.
3. AfterPay.
Want to buy a valentines day gift? Need some assistance financially? AfterPay may be the answer to your questions. They have a dedicated section for valentines day. They even allow users to buy stuff for their pets and pay afterwards.
4. Klarna.
This is a multinational platform that operates in many countries like Canada, the USA, Austria, Australia, Belgium, Ireland and many more. You Can choose from different fashion brands and set up a simple and easy payments plan.
Things To Avoid With Buy Now Pay Later.
All that glitters is not gold. You must keep certain things in mind before going for buy now pay later:
- The motive of these companies is to make stuff affordable. Now if by that you assume that you can afford things which are not affordable even on monthly payment basis, avoid opting out for these payment plans.
- Do not miss payments in order to avoid paying hefty fees. Missed payments can lead to high interest or even a dent in your credit history.
- If you are not going to pay your outstanding balance you might end up getting banned from these sights Permanently and then, bye-bye convenience.
- Do not get too comfortable with the payments. When you are going to get a payments plan, make sure that you pay back before your plan ends. This may better your chances on getting a bigger credit limit on these websites.
We personally like the convenience of BNPL. But we would like to hear from you about your own experiences too. Feel free to connect with us on social media, Instagram and Facebook, or drop a comment below.