Compare our top 5 picks for personal loans
- Best flexible terms: Sezzle
- Best interest-free plan: Klarna
- Best credit card financing: Splitit
- Best marketplace shopping portal: Perpay
- Best retailer integration: Afterpay Personal Loans
| Company | Customer rating | Our pick for | Terms | Interest rates | Service fee | Late fees | Credit check? | |
|---|---|---|---|---|---|---|---|---|
 Sezzle | Learn More | 1.0 | Flexible terms | 4 payments over 6 weeks | 0% | $0 to $7.49 | Up to $15 or 25% of purchase | Soft inquiry |
 Klarna | Learn More | 1.0 | Interest-free plan | 4 payments over 6 weeks | 0% | $0.75 to $3 | Up to $7 or 25% of purchase per installment | Soft inquiry |
 Splitit | Learn More | No ratingView profile | Credit card financing | Vary by retailer and customer | 0% | None from Splitit | None from Splitit; credit card fees apply |  |
 Perpay | Learn More | 1.0 | Marketplace | Payments each payday | 0% | | | |
 Afterpay Personal Loans | Learn More | 1.3 | Retailer integration | 6, 12 or 24 months | 6.99% to 35.99% | | | Soft inquiry |
Compare buy now, pay later apps
You want to choose wisely when selecting a buy now, pay later option. Look at the most current terms and conditions so you know exactly what to expect (these may change over time).
A good BNPL company has strong reviews, transparent terms and wide availability.
- Spending limit
- Based on credit, order history and time on app
- Interest rate
- 0%
- Installments/terms
- 4 payments over 6 weeks
- Late fees
- Up to $15 or 25% of purchase
- Spending limit
- Based on credit, payment history and balance
- Interest rate
- 0%
- Installments/terms
- 4 payments over 6 weeks
- Late fees
- Up to $7 or 25% of purchase per installment
- Spending limit
- Depends on credit card limit
- Interest rate
- 0%
- Installments/terms
- Vary by retailer and customer
- Late fees
- None from Splitit; credit card fees apply
- Spending limit
- Based on net income and repayment history
- Interest rate
- 0%
- Installments/terms
- Payments each payday
- Late fees
- None
- Spending limit
- $10,000
- Interest rate
- 6.99% to 35.99%
- Installments/terms
- 6, 12 or 24 months
- Late fees
- None
Buy now, pay later apps buyers guide
You may see offers to buy now, pay later (BNPL) financing when checking out your online shopping orders. Maybe you’ve seen these offers at the payment terminal in retailers stores. BNPL apps provide short-term retail financing to shoppers almost anywhere.
Here’s how these apps work, their pros and cons and alternatives if you determine they’re not right for you.
BNPL offers interest-free payment plans but charges for late payments. While you can spread out your costs without penalty in the short term, missed or rejected payments incur fees.
Jump to insightBNPL can boost your credit if you pay on time, but late payments can hurt it.
Jump to insightThere are several alternatives to BNPL. Consider a credit card (if you can get a 0% introductory APR), a personal loan or a credit union loan — or you can use your savings.
Jump to insightHow buy now, pay later apps work
Buy now, pay later apps are most commonly used for online purchases, although you may be able to use them in-store in some cases.
In general, BNPL apps let you make a purchase without paying in full at checkout. Instead, you pay for it in smaller, equal installments over time. It’s typical to see BNPL options on online retailers’ checkout pages.
Using buy now, pay later could help increase your credit score; some companies report payments to the credit bureaus.
Many BNPL apps offer interest-free options, meaning that the total amount you pay for a purchase will not exceed the original purchase price — as long as your payments are made on time and in full.
However, be aware that late payments or having a payment rejected can result in additional fees or charges, which could increase the cost beyond the original purchase price. Payments might be biweekly or monthly, depending on the company.
» COMPARE: Best personal loans
Are BNPL apps safe?
In general, BNPL apps and platforms use industry-standard encryption and security measures to protect customer information. These apps may also use fraud alerts and account monitoring tools to identify any suspicious activity.
The true danger of these apps lies in their ease of financing for products and merchandise. One in six people indicated that they would use BNPL apps to shop for holiday gifts in 2025, according to our Holiday Debt Survey.
Using buy now, pay later apps can entice consumers to overspend and they can quickly find that their small, monthly payment obligations snowball into crushing debt. You can use some BNPL services as a tool to help build credit, but you should only use them if you’re confident you’re making purchases with clear budgets to pay them off.
How to choose the right BNPL app
With so many BNPL apps available, it’s important to compare features to find the one that best fits your needs and financial habits.
- Check interest and fees: Look for apps that offer true 0% interest with minimal fees. Watch out for late payment penalties and other hidden charges.
- Review repayment terms: Some apps offer biweekly payments, while others allow monthly. Choose the one that matches your income schedule.
- Consider credit reporting: If building credit is a priority, pick a provider that reports to the major credit bureaus.
- Look at approval requirements: Some apps require more information or stronger credit history than others.
- Explore retailer partnerships: Not all BNPL apps work with all merchants. Choose one that supports your favorite stores.
- Read user reviews: Look at feedback from other customers for insight into how the app handles support, billing errors and other issues.
Doing a little research before signing up can help you avoid unnecessary fees and find the most flexible repayment plan.
Tips for using BNPL apps responsibly
Using BNPL apps responsibly can help you avoid debt, protect your credit and get the most value from your purchases. A thoughtful approach can ensure you enjoy the convenience of BNPL without facing unintended financial strain. Here are some tips to stay on track:
- Only buy what you can afford: Treat BNPL like any other loan. If you wouldn't pay full price today, think twice before financing.
- Set reminders for payments: Late or missed payments often come with fees and can hurt your credit score. Use calendar alerts or app notifications to stay current.
- Track your total obligations: It’s easy to overcommit when purchases are split into smaller payments. Keep a running total of all your BNPL obligations.
- Avoid stacking plans: Using multiple BNPL services at the same time can lead to confusion and overextension.
- Review terms before you agree: Know the repayment schedule, fees, and how the app handles disputes.
- Use it strategically: Consider using BNPL for larger, necessary purchases rather than everyday spending.
BNPL return and refund policies
Generally, for BNPL services that pay the merchant directly, you’ll initiate a return or refund with the merchant. Once the merchant refunds you, the BNPL lender will usually update your account with your new balance and work with you to refund the amount you’ve already paid. Keep in mind that you should follow the merchant’s returns and refunds policy.
For marketplace BNPL platforms like Perpay, contact the lender itself to initiate your return. You may have to take and send pictures that prove you didn’t open the shipping box or that the item is undamaged and unused, depending on the product. You may have to pay shipping and restocking fees. For example, Perpay charges a 5% restocking fee and a $10 return shipping fee.
Buy now, pay later pros and cons
Before you use any financial product, it’s always important to understand the benefits and risks. Buy now, pay later apps can help you finance a purchase, but there are some drawbacks to consider.
Pros
- Makes purchases more affordable by spreading out payments
- No interest charge if you pay on time
- No hard credit check to qualify
- Easy to use with fast approval before purchase
Cons
- Limits to how much you can spend
- Fees for late and rejected payments
- Can hurt credit if you don’t make payments on time
- Potential for spending more than you can afford to repay
Buy now, pay later alternatives
Buy now, pay later isn’t for everyone; some potential borrowers may struggle to gain approval based on income or repayment history. If you’re in need of alternatives, here are some to consider.
Credit cards
Credit cards can be a viable alternative to BNPL apps, especially those with a 0% introductory purchase APR. This makes them potentially interest-free, and, unlike some BNPL apps, credit cards help you build credit. They also have some benefits BNPL apps typically don’t offer, like cash rewards and luxury perks.
However, not everyone will qualify for all credit cards, and those with 0% introductory APR can be tough to get if your credit isn’t the best. There’s often a risk of high-interest debt.
Personal loans
You can get personal loans from banks, credit unions and online lenders. These loans often have reasonable fixed interest rates with consistent monthly payments. They usually accrue interest, but they can also help build credit.
One thing to consider, though, is there is an application process for personal loans, and funding is rarely instantaneous. Their interest rates can also be high if your credit score is lower.
Savings
Using your personal savings is one of the most straightforward ways to make a big purchase and can help you avoid late fees and other costs. If you keep your money in a high-yield savings account, you can earn a small amount of interest to help you save up quickly.
Not everyone has enough in savings to fund a big purchase, though. You also might not want to spend the cash you have available for emergencies and other uses. It’s best to use savings only if you aren’t drawing from your emergency fund.
Credit union loans
Some credit unions offer low-interest loans. In some cases, these rates are lower than what you’d get with credit cards or loans from bigger banks.
Keep in mind that credit unions require membership, however, and that usually means meeting specific eligibility requirements or making a donation to join.
Buy now, pay later vs. credit cards
Buy now, pay later companies and credit cards both allow you to make a purchase and pay it off at a later date, but there are important differences.
With BNPL, you usually owe a small amount upfront (for example, 25% of the purchase amount) and then have six weeks or longer to pay the remaining balance in equal, interest-free installments. You may be able to shop in person, but BNPL companies tend to be more oriented toward online merchants. Qualifying for BNPL also doesn’t require a hard credit check.
With a credit card, you’ll have to go through a hard credit check. If you’re approved, you’ll get a physical card to use anywhere that accepts your provider. Credit cards have revolving limits that allow you to spend and borrow up to a limit, with an interest-free grace period that usually lasts around 21 to 25 days.
| Buy now, pay later | Credit card | |
|---|---|---|
| Credit check requirement | Soft | Hard |
| Where you can use it | Limited retailers (mainly online) | Anywhere in card network |
| Interest | 0% | Often 0% for grace period; interest and APR apply after |
| Other fees* | Late fee, rejected payment fee | Annual fee, late payment fee, foreign transaction fee, balance transfer fee, cash advance fee |
BNPL might be better if you’re making a larger purchase you know you can pay off over the repayment period. A credit card is probably better for everyday purchases.
BNPL gives you a longer time to pay off a purchase at 0% interest, but not all retailers accept it. A credit card can be used at a wider variety of places and lets you pay off a balance at your own pace, but you’ll run into fees more quickly. Credit cards also come with better rewards programs and other benefits, like access to your credit score.
FAQ
How much does it cost to buy now, pay later?
The cost of buying now and paying later depends on the offer. With many buy now, pay later services, you pay an initial amount upfront and then make regular payments for a specific period. As long as you make your payments in full and on time, there are no fees. You may incur a fee for a late payment or a rejected payment.
Can buy now, pay later apps help build credit?
Some buy now, pay later services, like Perpay, do help you build credit as long as you make payments in full and on time. However, paying late or not making your payment in full could hurt your credit.
Who is eligible for buy now, pay later programs?
Eligibility for buy now, pay later varies by company. Most companies have basic requirements, like being 18 and having a working email address and phone number. You may also be required to have a credit card, debit card or regular income. Most companies do a soft credit inquiry to check your credit.
How do buy now, pay later apps make money?
Buy now, pay later apps usually make money from the companies they work with rather than the customer. For example, they may charge the store a fee each time a customer shops online or in a store and uses the buy now, pay later option to finance a purchase. Some companies charge fees to the customer, like late fees.
What happens if you don’t pay a BNPL loan?
If you don’t pay a buy now, pay later loan, you’ll likely face fees for each payment you miss. The lender may also report your missed payments to the credit bureaus, affecting your credit score. Even more, your payment history will be affected and could hurt your approval odds and limits for other BNPL loans in the future.
Methodology
To select our top picks, we looked at top-rated buy now, pay later companies and compared their repayment terms and fees. Our picks may be Authorized Partners that compensate us, but this does not affect our recommendations or evaluations.
