Amazon Financing: Pay Off Your Purchase Over Time
Need some time to pay off an upcoming Amazon order, but don’t want to pay more in fees or interest? You may be able to stretch out your payments as far as 24 months without paying a cent of interest or additional fees.
How Amazon financing works
There are five Amazon financing options worth considering, including some from Amazon directly. The best choice for you depends on a few factors:
Time
Most of these options will work for you if you only need a few months to pay off your purchase. If you need more time, you’ll likely be limited to credit card financing options.
Cost
When you finance a purchase, you’re usually subject to fees and interest charges. Fortunately, most of these Amazon financing options allow you to pay off your purchase interest- and fee-free as long as you: 1) make your payments on time and in full, and 2) pay off your entire balance by the end of the offer period.
That said, buy now, pay later platforms typically charge fees or interest, so avoid them if you don’t want to pay more than the purchase price.
Eligibility
In general, the better your credit, the more financing options you’ll qualify for. Some of the best Amazon financing offers are available through Amazon’s credit cards, which require a hard credit check in order to qualify.
| Financing | Term length(s) | Payments | Interest/fees | Eligibility |
|---|---|---|---|---|
| Amazon Monthly Payments | 4 months | One down payment (shipping, tax) due at time of shipping, then four equal monthly payments | No interest or fees if you pay on time | - Limited to certain products and Amazon customers - No credit check - No Amazon credit card required |
| Amazon credit cards – special financing | 6, 12 or 24 months | Flexible payment schedule — pay in full by end of term | No interest or fees if you: 1) make minimum monthly payments, and 2) pay your balance in full by the end of the term | Must have Amazon Store Card or Amazon Prime Store Card |
| Amazon credit cards – equal monthly payments | 6, 12 or 24 months | Equal monthly payments across term length | No interest or fees if you make monthly payments on time and in full | Must have an eligible Amazon credit card |
| 0% APR credit cards | Up to 21 months | Flexible payment schedule — pay in full by end of intro APR period | No interest or fees if you: 1) make minimum monthly payments, and 2) pay your balance in full by the end of the term | Must qualify for 0% APR credit card, which typically requires good to excellent credit |
| Buy now, pay later | 6 weeks to 48 months | Equal installments across term length | Typically charge fees or interest | Soft credit check, which doesn’t impact your credit score |
Amazon Monthly Payments
Amazon Monthly Payments is essentially an Amazon pay-in-four offer. When your Amazon order ships, you’ll make an initial down payment of taxes and shipping charges. Then, you’ll pay off your purchase in four equal monthly payments.
You don’t need a special credit card to qualify for this Amazon payment plan, and you won’t pay interest or fees on an order you finance through Amazon Monthly Payments. That said, you can’t use Monthly Payments for every purchase — Amazon only offers this financing option on “qualifying products.”
To determine if your item is eligible for Amazon Monthly Payments, look at the payment options on the page of the item you’re purchasing and again at checkout. If the purchase is eligible, you’ll see “Amazon Monthly Payments” as a payment option.
Amazon special financing
If you have (or get) an Amazon Store Card or Amazon Prime Store Card, you can qualify for special interest-free financing through Amazon. You’ll have until the end of the promotional financing period — six, 12 or 24 months — to pay off your purchase in full.
This is a fairly flexible financing option, as it doesn’t require equal payments, just minimum monthly payments. But if you don’t pay off your entire balance before the end of the promotional period, you’ll pay deferred interest. That means you’ll have to pay any interest that Amazon didn’t charge over the promotional financing period, plus interest on the remaining balance — yikes. Since the Amazon Prime Store Card has an ongoing annual percentage rate (APR) of 29.99% variable, you could be on the hook for a large deferred interest payment if you aren’t able to pay off your entire balance on time.
Amazon equal monthly payments
Amazon’s equal monthly payments financing is significantly more rigid than their special financing offer, but it’s available with all Amazon cards, including the Amazon Secured Card, Amazon Prime Secured Card, Amazon Store Card, Amazon Prime Store Card, Amazon Visa or Amazon Prime Visa.
You’ll select “equal monthly payments” at checkout, and your purchase total will be divided into equal monthly payments across a financing period of six, 12 or 24 months. As long as you make your equal monthly payments on time and in full, you won’t be charged interest or fees.
If you have an Amazon Store card or an Amazon Secured card and you make a late payment, you’ll be charged a late payment fee that will be assessed interest until you pay it. Similarly, if you have an Amazon Visa card from Chase and don’t pay off your balance in full by the end of the promotional period, whatever balance you have remaining will be charged interest until you pay it in full.
0% APR credit cards
0% APR credit cards offer a promotional interest-free period of up to 21 months to new cardholders. These cards are best if you need a long period of time to pay off your Amazon purchase. Plus, many 0% APR cards come with rewards, meaning you could get cash back, points or miles on your Amazon purchase, which could effectively lower the cost of your order.
When the promotional period ends, you’ll pay interest on any remaining balance. This could cost you quite a bit, as the average credit card interest rate as of the writing of this article is 24.59%. Another downside? Once your 0% APR credit card’s introductory offer ends, you won’t be eligible for additional interest-free financing with that card. The promotional financing options through Amazon’s credit cards are ongoing, meaning that you can take advantage of equal monthly payments through your Amazon credit card as long as Amazon continues to offer this financing.
Buy now, pay later
Several third-party buy now, pay later (BNPL) platforms allow you to pay off your Amazon purchase over time. Each of these lenders runs a soft credit check to check your eligibility, which won’t impact your credit score.
Most BNPL lenders offer a pay-in-four plan that allows you to pay off your Amazon purchase in four installments. Some of them, like Sezzle and Klarna, don’t charge interest or fees if you make your payments on time and in full. BNPL could be a good option for you if you’re confident that you can make your payments on time and in full but want to avoid the hard credit check that comes with applying for one of the Amazon or 0% APR credit cards listed above.
| Company | Term length(s) | Payments | Interest/fees |
|---|---|---|---|
| Affirm | 3 to 60 months | Equal monthly payments; down payment can be due at checkout | 0.00% to 36.00% APR, depending on creditworthiness; sometimes offer promotional 0% APR |
| Sezzle | 6 weeks | Four payments over the course of 6 weeks; down payment of 25% or more required | 0% APR for four payments over 6 weeks |
| Zip | 6 weeks | Four payments over 6 weeks | Installment fees of up to $7.50 and late fees |
| Klarna | 6 weeks | Four payments over 6 weeks; 25% down payment required | Late fees |
Paying in cash
The only way to guarantee that your Amazon purchase won’t cost you more than the list price is to pay using money you already have available in a checking account. If you’re not sure you can afford the monthly payments to finance your Amazon purchase, saving up and paying in cash will ensure you don’t rack up late fees and interest charges that will make your purchase more expensive over time. Budgeting for a big purchase means you’ll have to wait until you’ve saved up enough to place that Amazon order, but avoiding high-interest debt is worth the wait.
Frequently asked questions
Amazon does not directly offer BNPL through Afterpay on its website. However, you can use the Afterpay app to make purchases on Amazon.
Several other buy now, pay later platforms like Affirm, Sezzle, Zip and Klarna currently allow you to finance your Amazon purchase through their apps.
Yes, Amazon currently offers several ways to pay off your purchase over time. When you’re shopping, you may notice that certain items are eligible for Amazon Monthly Payments, which will allow you to pay off your purchase interest-free over four months. If you have (or get) an eligible Amazon credit card, you may be able to stretch out your payments with special financing or equal monthly payments.