| BNPL app | Best for… | APR | Repayment terms | Fees |
|---|---|---|---|---|
 | Long-term financing |
| 3 to 48 months | None |
 | Zero interest |
|
| Up to $8 (cannot exceed 25% of purchase) late fee |
 | Variety of payment plans |
|
| Up to $7 per missed installment late fee |
 | No late fees |
|
| No sign-up or late fees |
 | Rescheduling payments |
|
|
|
 | No credit checks | 0% | Six weeks |
|
| APR |
|
| Terms | 3 to 48 months |
| Fee | None |
| Pros | Cons |
|---|---|
Can make purchases up to $17,500 Zero interest applied on the Pay in 4 plan No late fees | May have to pay interest Only two payment options May have to submit to a credit check |
There are two types of payment plans Affirm users can choose from: One is short term, while the other offers more time for consumers to pay off the loan, though this option may come with interest.
| APR |
|
| Terms |
|
| Fee | Up to $8 (cannot exceed 25% of purchase) late fee |
| Pros | Cons |
|---|---|
No interest on Pay in Four plans Lower credit limits may help prevent overspending Ability to change payment due date | Charges late fees Interest can be as high as 35.99% Purchases have to be approved by Afterpay |
Consumers can avoid paying interest by using BNPL through Afterpay. However, you will have to pay a late fee of Up to $8 (cannot exceed 25% of purchase) if you’re more than 10 days late on your payment.Like many BNPL sites, Afterpay uses the Pay in 4 method, where you’ll pay off the entirety of your purchase within six weeks. To make life easier, you can connect your credit or debit card to your Afterpay account so you can utilize their autopay services.
If your shopping cart exceeds the limit of your Afterpay account, you may have to offer an initial first payment that will be larger than your consecutive payments.
| APR |
|
| Terms |
|
| Fee | Up to $7 per missed installment late fee |
| Pros | Cons |
|---|---|
No interest on Pay in 4 and Pay in 30 Days plans Flexible payment plans Can be used in person | Charges late fees Klarna must approve purchases May be charged up to 33.99% on monthly financing plan |
However, Klarna has some of the most flexible payment plans on the BNPL market, which may work well for some consumers. You can choose from the following types of payment plans:
| APR |
|
| Terms |
|
| Fee | No sign-up or late fees |
| Pros | Cons |
|---|---|
Zero late fees Borrowers won’t have to pay interest on Pay in Four plans Pay in Four plans won’t impact your credit score | Charges up to 35.99% interest Not available in all 50 states Low borrowing amount |
PayPal does not charge late fees or interest. Purchase amounts are capped at $1,500, so this option may not be a good fit if you’re wanting to make a large purchase. Unfortunately, you won’t be able to use PayPal Pay in 4 if you live in Missouri or Nevada.
| APR |
|
| Terms |
|
| Fee |
|
| Pros | Cons |
|---|---|
Allows you to reschedule payments Does not charge interest to Pay in Four plans Pay in Four plan does not impact your credit score | Charges fees to reschedule payments Interest can go up to 34.99% for monthly financing |
One of the bonuses of using Sezzle is that you can reschedule your payments. You can do this up to three times, though you may have to pay a fee to do so. Sezzle also charges convenience fees.
| APR | 0% |
| Terms | Six weeks |
| Fee |
|
| Pros | Cons |
|---|---|
Does not impact your credit score Allows you to change your payment due date Offers physical cards | Charges a $1 convenience fee per installment Only offers one payment plan Charges late fee of $5 - $10 |
Zip does charge a $1 convenience fee for each payment installment you have ($4 total). However, Zip also allows users to change their payment due date, which may be a useful feature for some consumers.
Wondering what is buy now, pay later (BNPL)? BNPL financing options can make it easier for some consumers to afford their purchases by breaking them into smaller chunks that are repaid over a short term. You can find BNPL options at just about any online retailer — anywhere from Target to Amazon.
Traditional BNPL plans are paid over a total of six weeks with the first payment owed upfront. There is typically no interest charged on these types of plans. Lenders also tend not to perform credit checks with these plans.
In some cases, if you want to make a purchase but cannot afford to pay the entire balance upfront, some retailers offer buy now, pay later options that allow you to break up your payments, offering you more time to pay.
Here are a few common forms of BNPL you might encounter:
In some instances, you’ll have to weigh whether using your credit card may be a better option than using a BNPL service. Here are a few instances to consider.
The best buy now, pay later apps depend on the features you’re looking for. For instance, if you’re looking for a BNPL service that doesn’t charge fees, you may want to consider Affirm or PayPal. Other factors to consider include loan terms, interest and amounts.
While some BNPL sites can help you build your credit score, many may not. This will depend on whether the BNPL company reports your payments to the three credit bureaus — Equifax, Experian and Transunion. If they do not, your BNPL app probably will not help you build credit. If this is an important factor in your decision, consider a credit card or personal loan.
The credit score needed to qualify for a BNPL app will depend on the lender. Some BNPL companies, such as Zip, don’t look at your credit score at all, while some may perform a soft credit inquiry during the initial application process. Unfortunately, many BNPL sites are not clear about their specific credit qualifications.