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New Wave: Buy Now, Pay Later

In the last year or so, a lot of sites are popping up where you can purchase various items now versus later. This concept is far from new. For decades info commercials and HSN has been selling us items for $19.89 for 6 months for some cheesy jewelry or house item. The concept behind the newer versions is mostly targeted towards 18-35-year-olds shopping primarily out stores like Urban Outfitters, NastyGirl, and Forever 21.

I prefer the “Pay in 4” method because I may not have room in my budget for something. I started using Afterpay because it was easier to pay $25 than $100 at once. $100 is a big deal when most of my check goes to bills. If you are good with budgeting out your income for the next few weeks this may be useful. There have been times where I tried saving toward something I wanted but end up using that money for something else.

Afterpay

Hailing from Australia, Afterpay is the best app for me. You can pay in installments for almost anything. Do you want a new duvet set for Fall? You can do that. Need a new dress for that upcoming wedding? You can head over to Anthropology to get that whimsy dress you were eyeing for the last two weeks.  The number one reason I like this app is that there isn’t a fee for what you buy or no interest unless your card declines. The $8 fee will be charged to your account 11 pm EST the day after its due. Failure to pay will end up on your credit report. The only other issue is that not a lot of retailers sign up for Afterpay and places like Target and Best Buy are ones you cannot do. Afterpay doesn’t do electronics which sucks but I understand losing thousands of dollars of unpaid debts for $2000 Apple computer. The maximum amount you can do on most sites is $1000. You will need to be over 18 to be able to use this service. Looking into Afterpay, I found an article that goes into massive detail about the pitfalls of the app.

Affirm

The first time I used Affirm I needed to go to Philadelphia. I had two book two trips within a month of each other. I paid one in cash and the other with Affirm. I wasn’t going to but when it came up, I pulled the trigger. I’ve used it a few times since then for things I wanted. My credit sucked and the interest rate was high. Affirm will approve you on a score of 550 or higher. The highest APR interest rate is 30% and the highest amount you can get approved for is $17,500. You will have to provide your cell phone number. Using Affirm helped me get new clothes for my new job. Since my interest rate was pretty high, I made sure to pay things off fairly quickly. They give you the option to pay off loans in increments of 3, 6, and 12. I was able to use Affirm with ApplePay and made it easier to use stores that didn’t have Affirm as a payment option. They do have a lot of popular stores like Target and Apple. Since my credit isn’t good, I have been turned down for this but knowing the interest is way too high for purchase, I will not be returning to this app even when my credit raises.

Klarna & Quadpay

Klarna is similar to Afterpay but you can shop through the app with any brand via the in app browser. They use the Pay-in-4 method, which I like but the downside for me is I can’t pay when I want. That doesn’t seem like a big deal but I like paying things I owe when I get paid event if its not due for a few days. I really do think its great you can use it on any site.

Quadpay is very unique but still offers you a Pay-in-4 method. You can go grocery shopping, buy the new Apple product or grab running shoes from Nike. I don’t plan on trying this anytime soon. I didn’t read much into it but like the other sites.

Links: Vox, Finder (Linked the specific readings per paragraph)

By Sequoia Bey

Self Proclaimed ice cream kween, Sequoia Bey is living it up in Los Angeles with her cat, Edgar. When she's not working or writing , she's either online window shopping or catching up on her shows.

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