What to know about shopping with payment plans

Buy now, pay later as a payment plan

It’s possible to use buy now, pay later (BNPL) as a type of payment plan. This type of plan allows customers to make a purchase with a partial payment and pay the remaining balance in instalments. Depending on the provider, BNPL options can sometimes come with no interest added, but it’s important to read and understand the terms and conditions before deciding to use one because interest and other fees may vary depending on the provider.

Examples of what can be purchased with payment plans

Payment plans can be used to complete various purchases, as long as the retailer offers it as a payment method.

Buy now, pay later payment plans are a form of credit, so it’s critical to consider any possible impact to your credit file and always spend responsibly.

Here are some examples of what could be purchased with a payment plan:

• Furniture
• Clothing
• Appliances
• Jewellery
• Electronics
• Holidays and travel
• Home improvement projects
• Wedding expenses
• Sporting goods
• Concert tickets

Where can payment plans be used to shop online?

Many online and in-person stores offer payment plans at checkout. That said, there are dedicated payment plan providers that partner with online stores to offer BNPL options.

When can a payment plan be used to shop online?

Shopping online with a payment plan can be a flexible way to divide the cost of a purchase into instalments, at millions of stores around the globe. There are also potential risks such as potential late fees for missed payments.

Buy now, pay later might be useful when paying for larger expenses, such as a replacement appliance, car insurance or a holiday.

Payment plan shopping can also be a good tool to help shoppers stay within their budget and manage cashflow by spreading out the payments. Before choosing to apply for a payment plan, it’s important to understand how it works, be confident that you can afford the purchase, and consider any terms and conditions.

Considerations when choosing a payment plan

There are different payment providers to choose from.

Things to keep in mind include:

• Carefully consider the terms and conditions, including any added fees or interest.
• Spend responsibly. This includes making sure a purchase fits comfortably in the budget.
• Compare options. There are many different payment plan providers available. Individuals should choose the right option for their needs.
• Read reviews. See what other shoppers have said about the payment plan provider before deciding to apply.

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