The Buy Now, Pay Later apps are incredibly helpful, especially if you run out of cash during the month. They are ideal for urgent purchases, which you can pay in smaller installments later.
Best of all, unlike “buy now, pay later” credit cards, apps generally don’t ask for interest. Which buy now pay later apps are worth trying? Here are our top 13 picks just for you.
What are Buy Now Pay Later apps?
Today, we have numerous Best Buy Now, and Pay Later apps that can do just about anything for us, including managing our finances. Money transfer apps or cash advance apps like Dave supplement our finances and ease some of the burdens. Similarly, buy now pay later apps to play an important role for people struggling with cash flow.
Buy now, pay later, the apps do exactly what they imply. These are apps you can use to buy items right now without having to pay upfront, like a credit card. You can pay them in installments over a set period (usually in four separate payments) at a later time.
What makes them attractive is that they generally do not charge interest, unlike credit cards. Their approval systems are also less strict, so you can apply for them more easily. Of course, making late or missed payments still results in penalties, so you’ll still need to be careful.
Buy now, pay later applications are different from loan and cash advance applications. The latter usually requires you to deposit earned income into a checking account before your paycheck arrives. As the name suggests, they are apps that lend you cash in advance before your next payday. On the other hand, buy now, pay later apps to let you shell out money you don’t have. You’ll have to take care of financing and payments later, without the app changing your paycheck at all.
Cash advance apps are useful for emergencies, especially if the buy now, pay later apps are not associated with your chosen retailer. However, each has its unique pros and cons and will be useful in different circumstances.
Apps Best Buy Now, Pay Later
What is the best buy now, pay later apps that you can use in 2022? Here are our top picks in alphabetical order.
1.Affirm
One of the most convenient apps to buy now, and pay later is, without a doubt, Affirm. The reason for this is simple: Affirm, unlike many credit-based apps, doesn’t charge fees even if you pay off your loan late on the due date. So you won’t have to worry about paying more than the amount you borrowed if you ever miss a payment.
When it comes to interest, Affirm is great because its charges on certain transactions are simple. Therefore, you do not need to worry about the exponential growth of interest. Of course, the downside to this is that Affirm charges interest, unlike another buy now, pay later apps. These can range from 0% to 10% or even 30%, depending on the store. As a result, it’s not exactly ideal if you want an app that doesn’t charge any interest at all.
However, Affirm is great if you like long-term, flexible payment plans. That’s because the app lets you pay over three to 36 months (again, no fees). Also, it is one of the most excellent apps to buy now, pay later if you need to make large purchases due to its $17,500 transaction limit.
Affirm is widely used, which means you can shop at many physical and online stores with it. If a store is not associated with Affirm, they can generate a virtual card number instead. Best of all, the application doesn’t have a minimum credit history, so you won’t have a problem getting approved.
A favor
- No late payment fees
- Flexible payment schedule
- Large maximum limit
- Physical or online purchases are available
Against
- Interest in some transactions
- You need a credit check
- no physical card
2. Afterpay
We couldn’t leave out Afterpay when it comes to the best buy now, pay later apps. For those who want a loan but stay on a budget, this app has a handy smart credit limit feature that prevents you from going overboard with your credit-based purchases.
In addition, Afterpay also cares about helping you meet payment deadlines by sending reminders of your payment schedule. However, it is a bit punishing if you fall behind on your payments. This is because while there are no fees for paying on time, late fees can be very high.
Also, Afterpay is a bit picky when it comes to the orders you place. The app has to approve each purchase you make and can even reject one if it deems necessary. Still, it’s nice if you need an outside force to keep your expenses in check, regardless.
Afterpay lets you spread your payments over four interest-free installments if your purchase is under $100. It has over 85,000 partner brands, so you’ll have tons of retailers to choose from. You can also shop offline via Afterpay’s virtual card number, so you’re not limited to online shopping.
A favor
- Helps you budget through smart credit limits
- Send payment reminders
- No commissions for punctual payments
Against
- The app may decline your purchase.
- High charges for late payments (up to 25% of the order amount)
- Purchase Approval
3.Thimble
Fingerhut is one of the best shopping apps now pay later for those who need credit without a good score. For starters, it doesn’t check your credit history to get approved. Therefore, even those with a bad credit history can apply and get approved. The good news, however, is that Fingerhut is a good place to start improving your credit score. Good payment behavior on the app is reflected in your account with all three major credit bureaus. It also does not provide annual fees of any kind that could further burden your payment.
However, Fingerhut has tons of cons that you will have to put up with just to improve your credit score. For one thing, they only allow you to shop on their website or partner retailers. Also, the prices on their website are through the roof, with an annual percentage rate of 29.99%. There is also a $38 fee for returned or late payments.
With that in mind, Fingerhut isn’t the best of the buy now, pay later apps on this list. Still, it’s decent if you’ve been denied elsewhere and want credit regardless of your score.
A favor
- No checks for credit history
- Zero annual fee
- Good payment behavior helps your credit score
- Payments divided into 6 or 8 installments
Against
- The highest prices
- It only allows you to buy from Fingerhut or its partners
- Great interest rates and fees
4. Four
Number four on our list is four. It’s not exactly the most popular service out there, but it’s certainly worth considering given its benefits. This is because Four not only divides your payments into 4 equal installments but also offers no fees or interest.
It’s also great for users looking for no-load apps to buy now and pay later. None of your payment behavior within the service will be reflected in your credit score. So you don’t have to worry about late payments affecting your score at all.
The only downside to Four is that it requires you to pay 25% upfront. Therefore, you will need to pay the advance and shell out some cash. However, it is a great option as you can pay off the balance over 6 weeks. All you need to do is sign up, link your card (or Apple Pay or Google Pay), and you’re good to go.
A favor
- No hidden fees
- no interest
- Divided into four equal payments
- No reflection on credit score
Against
- Advance payment of 25%
5.Klarna
Many buy now, pay later apps provide a good short-term solution to financing your purchases. However, it is not always practical to finance larger purchases in short-term installments. That’s why Klarna is one of the best checkout apps later if you’re shopping for more expensive items.
With Klarna, you can have up to three years of financing for your transactions. So you can pay in smaller, more manageable installments over a longer period. That said, you can also choose shorter payment periods (as short as 30 days) if you’d like.
Apart from this, Klarna is accepted almost everywhere. Not only does it have 250,000 partner retailers internationally, but it’s also accepted anywhere credit cards are available. Furthermore, it is also incredibly secure as it provides fake credit card numbers for every transaction to ensure security.
However, Klarna is not perfect. This is because each transaction requires the company’s approval (which is understandable given that they accept larger purchases). Also requires a credit check for certain financing options.
A favor
- Accepted wherever credit cards are
- Single-use card numbers for security
- No interest or commissions for punctual payments
- rewards program
Against
- Purchase Approval
- Requires credit check
6.PayPal Credit
One of the most prominent applications to buy now and pay later is none other than PayPal credit. As the name implies, the service is accepted anywhere PayPal payments are made. So you can use it almost anywhere internationally.
PayPal Credit offers flexible financing that does not have monthly payment terms. This is because the service simply asks you to pay the balance in full within six months of the transaction. You don’t need to worry about shelling out some money every couple of weeks or so. PayPal credit also arrives instantly, which is great as other cards take over a week to arrive.
Unfortunately, it’s a bit tricky to get credit from PayPal. For example, the minimum credit line is $250. You can only have 0% interest on your transaction if it is over $99. Also, the way your system works means that poor performance only hurts your credit score. Thus, good payment behavior is not rewarded, but bad payment behavior is punished.
A favor
- arrive instantly
- No quota presets, just a deadline
- PayPal Accepted Anywhere
Against
- Reflects only the negative behavior of the credit bureaus
- Minimum purchase required for 0% interest
7.PayPal Pay in 4
If you need a small credit-based solution, then PayPal’s “Pay in 4” service is one of the best options. It not only provides the security of PayPal but also offers interest-free purchases. Therefore, you will not have to worry about the reliability of the application or pay a higher amount just for financing.
One of the best parts is that it is accepted by millions of online stores and you don’t need to consider compatibility most of the time. The only problem is that it’s not available in all US states, so you’ll need to check availability first.
Unfortunately, PayPal Pay in 4 cannot handle larger transactions. Unlike another buy now pay later apps, Pay in 4 has a maximum limit of $600 (and a minimum of $30). Therefore, you will have to resort to other options if you want to make a larger purchase. The app also requires approval per purchase, so you can’t spend as freely.
However, it is a good option if all you want to finance are small transactions. With Pay in 4, all you need to pay upfront is a down payment. Then you can pay in three installments at intervals of 15 days. You can access this payment method in the Paypal app along with PayPal credit.
A favor
- trusted brand
- no interest
- Accepted by millions of online retailers
Against
- $600 limit per purchase
- Not available in all North American states
- Purchase Approval
8.Perpay
The world isn’t exactly kind to people with poor credit. However, there is some buy now, pay later apps that ease the burden and make financing easier. One of them is Perpay. How kind are you to people with bad credit? Simple: The app doesn’t screen users based on credit history, so it’s quite acceptable to everyone, regardless of financial history.
Perpay isn’t exactly reckless with its services, either. It enacts some checks and balances to make sure you don’t lose money. One of the ways it does this is by limiting a user’s spending budget based on their income level.
Other than this, Perpay acts as another buy now, pay later app. It provides a fairly long financing period of up to six months, enough to pay off most transactions. If you can pay on time, you can even boost your credit score through the app.
However, what the app lacks is the number of partner merchants it has. This is because it only allows you to buy from the company’s exclusive marketplace. Also, items will not be shipped until your first payment. If that wasn’t enough, the app also requires you to pay via payroll direct deposit.
Nonetheless, the app is worth considering, as others buy now, pay later apps typically check your credit score. If you desperately need to improve your position, this is a decent way to do it.
A favor
- No credit check
- Income-Based Limit
- 6 month financing period
- Increase credit score for on-time payments
Against
- limited market
- Shipping only after the first payment
- Scheduled payments via payroll direct deposit only
9.Sezzle
If you have a bad habit of not making payments, perhaps Sezzle is a good option. This is because the app not only finances your payments for six weeks but also allows payment rescheduling. Therefore, you can delay your payment for up to two weeks if you cannot make it on time.
Of course, this comes with some conditions. The first rescheduling per order is free. However, subsequent rescheduled payments will cost you $5. That’s not too bad considering how little it is compared to your delivery. However, this fee may add up if you are a serial reprogrammer.
Alternatively, you can choose to reschedule multiple payments at the same time. Therefore, you can delay all subsequent payments through your first free rescheduling. Through this, you can avoid the $5 fee as long as you reschedule only once.
Reprogramming aside, Sezzle acts like most another buy now, pay later apps. It requires a 25% down payment at the time of purchase, which can be onerous if you don’t have cash. However, it doesn’t charge any interest on your purchases, so at least there are no additional costs. On the other hand, Sezzle doesn’t have many partner merchants compared to another buy now pay later app. Therefore, you will have to limit yourself to its 34,000 merchants to take advantage of its benefits.
A favor
- Flexible payment plans
- Payment rescheduling up to 2 weeks
- No interest in purchases
Against
- 25% down payment
- Additional Payment Rescheduling Fee
- $5 additional rescheduling fee
10.Split
Split purchases with your Visa or Mastercard credit card and earn rewards for yourself. However, unlike a normal credit card, Splitit divides your payment into installments and does not charge fees or interest. That is unless, of course, you make late payments.
The app does not check your credit or require you to apply or register for anything before you can use it. The only requirement is that you already have a credit card. It also uses your current credit card limit as its own; so you don’t have to stick to a smaller credit limit like another buy now, pay later apps.
The only downside to Splitit is that it’s not compatible with all types of other credit cards, particularly Amex and Discover. Also, a good payment performance on Splitit will not affect your credit score at all.
A favor
- No registration, application, or credit check
- Spending limit based on your credit card limit
- High transaction approval rate
- No interest or commissions
Against
- Requires a credit card before you can access it
- Doesn’t help your credit score
- Not available with certain cards like Discover or Amex
11.ViaBill
Another great credit-based app is ViaBill. Since most buy now, pay later apps, ViaBill allows you to pay in four equal installments, with the first one up front. However, the remaining three will be divided equally and paid monthly.
One of the best parts of ViaBill is that it does not charge any interest or hidden fees on any transaction. Plus, there are also no late fees, as your payment method on file will be automatically charged on each due date.
However, you’ll have to deal with the fact that you’ll get an initial credit limit of $300. That’s not much for big spenders, but it’s a decent option if you want financing that isn’t as onerous as another buy new apps. and pay later.
A favor
- No credit checks required
- no interest
- Monthly installment payments instead of bi-monthly
Against
- Advance payment of 25%
- Small initial limit ($300
12.Zebit
Zebit is another buy now, pay later app that doesn’t put too much pressure on the user. That’s because it doesn’t require a good credit score and it charges 0% interest. Therefore, you can simply apply for the service and wait until you are approved without worrying about your financial history.
In addition, the application also provides a fairly large limit and allows you to pay off the balance for six months. You can have up to $2,500 in credit, enough for almost any type of purchase you can make.
The disadvantage of Zebit is that it only has more than 1500 brands associated with it. Also, you can only make purchases using Zebit from their proprietary online marketplace. Therefore, it is not the best option if you want to access other retailers. Zebit also bases your ZebitLine on your current employer, so leaving your job will also lower your ZebitLine.
A favor
- 0% interest
- No credit score check
- $2,500 in interest-free credit
- 6-month financing
Against
- A small number of associated brands
- It only allows you to shop at Zebit Market
- Employer-Based Line of Credit
13.Zip (Quadpay)
Lastly, one of the best buys now pays later apps is none other than zipping (formerly Quadpay). With Zip, you get easy access to the right financing without worrying about your credit history. That’s because the app doesn’t check your credit score before approving your application. Plus, Zip also doesn’t report your activity to any credit bureaus in the US, so you don’t have to worry about poor performance reflecting on your credit score.
Zip’s only drawback is the number of fees it charges. For example, you have a transaction fee of $4 per purchase (or a fee of $1 per payment). The platform also charges a $7 late payment fee. With all of these combined, you can easily incur tons of expenses just from the fees.
Also, the app is not ideal if you are looking for long-term financing. It only provides a financing period of six weeks and no more. The app might make it up to you with its 51,000 international partner merchants and a handy browser extension. However, it is up to you whether the trade-offs are worth it or not.
A favor
- 0% interest
- No credit check
- Does not report to credit bureaus
- 51,000 global merchants
- Browser extension available for non-partner retailers
Against
- 6 week pay period
- $ 4 fee per transaction or $ 1 fee per payment
- A $7 late payment fee
Conclusions
If you’re living paycheck to paycheck, it’s easy to succumb to the allure of buy-now-pay-later apps. After all, sometimes you need something urgently, but you don’t always have the money at hand. While we’re not saying buy now, pay later, apps are bad, we recommend that you spend your money wisely. These paid apps are convenient, but they can easily ruin your finances instead of helping them if you’re not careful.
