Afterpay Buy Now, Pay Later Review

Afterpay, a buy now, pay later (BNPL) company, can help you split up retail purchases and pay for them over time. Primarily, Afterpay is geared toward online shopping, both through your web browser and via mobile app. You can also use Afterpay in-store as long as the retailer you’re buying from accepts Afterpay as a payment method.

Here’s what you should know:

• No interest for Pay-in-4: Afterpay’s popular Pay-in-4 plan doesn’t charge interest. You’ll make your first payment up front, and your final three payments are due every two weeks.
• Offers longer-term financing: For purchases over $400, you can opt to pay over six or 12 months. These plans come with interest rates between 6.99% and 35.99%.
• Can still qualify with so-so credit: Afterpay determines your eligibility with a soft credit pull. This can make it easier to qualify for than a credit card.
• Access to exclusive deals: Afterpay offers discounts and deals on brands like Finish Line, Skechers, Urban Outfitters and more.
• No hard credit checks, ever: Some BNPL apps (such as Affirm) require a hard credit check if you opt for monthly financing. No matter how you want to split up your payments, Afterpay only runs a soft credit check.
• Not as easy to use in-store: You have to create a digital credit card and add it to your Apple Pay or Google Wallet to use Afterpay in a store. Also, not all stores accept Afterpay (very few, depending on where you live).
• Best for disciplined online shoppers: If you’re shopping online and want to finance retail items like clothes, shoes and home goods, consider Afterpay. You won’t pay any interest on Pay-in-4. But beware — BNPL apps can lead to overspending because they’re easy to use and may encourage impulse buys.

Afterpay pros and cons

There are tons of BNPL sites and apps to choose from, so it can take some time to find the one that’s best for you. Reviewing the pros and cons might help you decide.

Afterpay’s Pay-in-4 plan can be a great way to make retail purchases more manageable. You won’t pay any interest, and you only have to put 25% down. If you’re new to Afterpay, you’ll have a $600 spending limit. Using Afterpay responsibly and making your payments on time can unlock higher amounts.

Afterpay also has a monthly financing option called Pay Monthly (which does come with interest). You must spend more than $400, and you’ll have six or 12 months to pay what you owe.

Not all Afterpay retailers participate in Pay Monthly, and a down payment might be required. Additionally, Pay Monthly is not available if you live in Hawaii, Nevada, New Mexico or West Virginia.

One of Afterpay’s biggest pros — and biggest cons — is how easy it is to use. Using any BNPL app can lead you to spend more than you think. You’ll only have to put a small portion down, and the instant gratification of BNPL can lead to impulse buys.

Afterpay requirements

Unlike most personal loans, many BNPL apps use a soft credit hit to determine your eligibility. As a result, it doesn’t have a minimum credit score requirement.

That said, if you’ve been a customer for less than six weeks, Afterpay might only let you make one order at a time, and at a lower limit. After you’ve shown that you can use the app responsibly, it may allow you to finance more often, and in larger amounts.

You must also meet the below requirements to finance with Afterpay online and in stores.

If you meet the benchmarks listed above, your purchase must also meet additional requirements. While Afterpay does allow borrowers to use its funding for a variety of purposes, there are certain expenses it will not finance. Also, to use Afterpay, the retailer you’re shopping with must accept it as a payment method.

As a BNPL company, Afterpay’s options might not work for your borrowing needs. If you think a personal loan is a better fit, shop around for a lender that can offer you the best-fitting rates, terms and amounts.

How to shop with Afterpay

There are three ways to use Afterpay: via mobile app, online through your web browser and in-store.

How to use Afterpay online via mobile app

1. Download the mobile app.
2. Create an account.
3. Start shopping.
4. Complete your purchase with your desired Afterpay financing option.

How to use Afterpay online through your web browser

1. Check out Afterpay’s shop directory to find a participating retailer.
2. When you’re ready to check out, choose Afterpay as your payment method.
3. If Afterpay approves your order, enter in the card you would like to use to make your down payment. When that payment is processed, Afterpay will create an account for you.
4. Set up your account password on Afterpay’s website or its mobile app so you can make future purchases.

How to use Afterpay in-store

1. Download Afterpay’s app and create an account.
2. Click on the “in-store” tab, follow the prompts to create an Afterpay Card and add it to your digital wallet.
3. Check the app to find brick-and-mortar locations near you that accept Afterpay.
4. Use your digital wallet to pay with your Afterpay Card when you’re checking out.

How Afterpay compares to other BNPL companies

Even if you believe Afterpay aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Afterpay stacks up against similar personal loan lenders.

How we rated Afterpay

To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:

• Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls and whether they were transparent about eligibility criteria other than credit scores.
• Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent but also competitive.
• Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.

The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.

The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.

LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.