Buy now pay later is exactly what it says, it gives you the option to purchase a product straight away and pay it off later. Have you ever wondered what that could mean for you at a later date when wanting to obtain finance. At Funding Force, we believe in giving our clients all the most up to date information and share our knowledge with all of you.
What is Buy Now Pay Later?
As the years have progressed so has technology and the way we buy. The buy now pay later option is essentially a layby that you’re able to take on the day without having to wait for the product. The buy now pay later option has become an incredibly popular option around Australia as it’s an interest free option available from many large retailers which makes shopping more attractive.
What companies use the buy now pay later?
There are many companies who now offer the buy now pay later option as over the years this option has been more appealing to the customer rather than pay large amounts upfront. Some of these options don’t require a credit check either but that doesn’t mean that it won’t affect you when wanting to obtain finance.
- Zip Pay
- Latitude Pay
What should you consider?
These options are appealing to many Australians when using one of the buy now pay later options but there are also a few things that you should consider first. As mentioned earlier some of the companies we mentioned don’t do a credit check but they all are essentially a line of credit which can still effect you and here are the reasons why:
- Fees – Whilst some companies are interest free, there are some that also charge you monthly fees / admin fees / late fees
- Overspend – It may sound obviously but it’s easy to do. You may think I just have $20 here and $30 dollars there but they can quickly add up over time and you have overspent.
- Loan Application – Some companies don’t require a credit check but when wanting to obtain finance lenders now take into concideration if the applicant uses the buy now pay later.
- Late Repayments – A mistake some people make when using the buy now pay later that they don’t think it can affect there credit score. Unfortunately using this as a way of spending definitely can because if you over spend and can no longer afford repayments it can be listed on your credit file.