BNPL and POS apps let you buy products today and pay for them over a few months or more. The apps on our list partner with some of the most popular brands in the marketplace, making it easier to shop at your favorite stores when you’re in between paychecks. In addition, BNPL apps typically require repayment over six weeks, and there is usually no interest or credit check. Conversely, POS apps have terms that range from a few months to a few years, and some companies charge interest. As a result, POS loans are more like personal loans, while BNPL loans are more like no-fee, no-interest payday loans.
BNPL loans are ideal for small purchases that you pay back over short durations. However, since you can’t use the funds to cover expenses, our guide on the best cash advance apps can help when you confront an emergency. Likewise, POS loans are great for large purchases like refrigerators and furniture that require longer repayment terms.
However, some personal loans offer better APRs. Also, our marketplace has options for borrowers of all credit scores, and applying doesn’t require a commitment and won’t impact your credit profile. As a result, you should shop around to obtain the cheapest rate.
BNPL and POS apps offer affordable financing. Instead of waiting for your paycheck to arrive, you can receive an item today and pay for it at a later date. Many of the apps on our list also don’t charge any interest or fees, and most don’t have a minimum credit score requirement.
Like Klarna, Affirm Pay in 4 lets you Buy Now, Pay Later with no credit check. There are no fees, and you repay the balance with four interest-free payments every two weeks. Moreover, Affirm partners with companies like Target, Walmart, Samsung, Lowe’s, Neiman Marcus, and Adidas. As a result, plenty of great brands are available on Affirm’s platform, and like Klarna, there is no minimum credit score requirement. However, if you want to borrow upwards of $17,500, with terms of three to 12 months, APRs of 10% to 30% typically apply.
Pros:
Like Klarna, Affirm provides BNPL and POS loans.
There is no interest when you Pay in 4.
There is no credit check.
There are no prepayment or late payment fees.
Affirm partners with some of the most popular stores and brands.
Cons:
Not all applicants are approved.
Affirm may or may not provide a high spending limit.
Who is the app best suited for?
If your credit score is less than stellar, Affirm may be more willing to give you an opportunity than other lenders.
The impact of COVID-19:
Affirm’s hardship program enabled users to stop purchases and defer payments. To learn more about the options available, you can call Affirm at 1-855-423-3729 or fill out the contact form through Affirm’s help center.
Klarna Pay in 4 provides no-interest POS financing, and, like Affirm, there is no minimum credit score requirement. The platform is home to brands like Nike, Sephora, Wayfair, Harley-Davidson, MLBShop.com, and NHLShop.com. There is a $10 minimum for all transactions. However, you receive a $5 sign-up bonus when you make your first purchase.
Pros:
Like Affirm, Klarna provides BNPL and POS loans.
There is no interest when you Pay in 4.
There is no credit check.
There are no prepayment or late payment fees.
Klarna partners with some of the most popular stores and brands.
Cons:
Not all applicants are approved.
Klarna may or may not provide a high spending limit.
Who is the app best suited for?
Klarna is great if you frequently shop at partner stores and want to spread your payments out over time.
The impact of COVID-19:
For members whose jobs were lost or suffered financial hardship during the outbreak, Klarna offered payment holidays. Moreover, while the Shop Now, Pay Later app’s ‘snooze’ feature offers no-fee and no-interest 10-day payment delays, pandemic-specific options were also available. To learn more, you can call Klarna at 1-844-552-7621 or use the app/website’s chat function.
Like Affirm and Klarna, Splitit is an excellent Buy Now, Pay Later lender. However, you need a credit card to participate. Splitit places a hold on your credit card for the purchase amount and then decreases the hold as you make your payments. There is no minimum credit score requirement, and like Affirm and Klarna, you don’t have to worry about interest or fees. Splitit accepts Visa, Mastercard, Discover, and UnionPay. But American Express and Capital One are not on its partner list. But notable brands like James Allen, GlassesUSA, Echelon Fitness, and REST are available on the platform, and Splitit’s business model allows you to earn credit card rewards while you shop.
Pros:
Like Afterpay, Splitit provides BNPL loans.
There is no interest.
There is no credit check.
There are no prepayment or late payment fees.
You can keep earning credit card rewards.
Cons:
Like American Express, you need a credit card to use Splitit.
Not all credit cards work.
Who is the app best suited for?
If you already have a credit card, Splitit makes shopping easy, and approval is a breeze.
The impact of COVID-19:
While Splitit doesn’t list any COVID-19 policies, you can inquire about its hardship policies. For example, you can call the company at 1-844-775-4848 or email support@splitit.com.
You can Buy Now, Pay Later at brands like Ray-Ban, Shiseido, and Aldo, with Afterpay. You repay the interest-free loans over six weeks, and Afterpay’s virtual card uses digital wallets like Apple Pay and Google Pay to let you process in-store transactions. However, like Zebit, Afterpay requires 25% money down. Also, late payment fees range from up to $8 to 25% of the total purchase, depending on your location.
Pros:
Like Splitit, Afterpay provides BNPL loans.
There is no interest.
There is no credit check.
Cons:
Like Zebit, you have to make a down payment.
Late payment fees vary by state.
Who is the app best suited for?
If you’re sure that you can avoid late payments, Afterpay is one of the best BNPL sites.
The impact of COVID-19:
Afterpay’s hardship program provided a financial lifeline for members struggling throughout COVID-19. The Buy Now, Pay Later company partnered with A Common Thread and Baby2Baby to support fashion businesses and children affected by the outbreak. Likewise, Afterpay’s top-up program allowed users to donate $1 to charitable organizations with each purchase, and the company’s more than $200,000 in corporate disbursements provided extra funds for COVID-19 relief. To find out how Afterpay can help you, the BNPL company recommends that you submit a request through its help center.
Like Splitit, you need a credit card to use American Express’ BNPL service. However, if you’re already an American Express cardholder, you can Buy Now, Pay Later with no credit check. In addition, its “Plan It” service allows you to make purchases of $100 or more and repay the balance in three to 24 months. But a fixed monthly fee of up to 1.33% applies per transaction, and you can’t use it on items that incur foreign transaction fees. Therefore, Plan It is excellent for virtually everything else.
Pros:
Like Affirm, American Express provides BNPL and POS loans.
There is no interest.
There is no credit check.
Cons:
Like Splitit, you need a credit card to use Plan It.
American Express charges a fixed monthly fee.
You can’t make purchases that incur foreign transaction fees.
Who is the app best suited for?
If you value BNPL capabilities and credit card rewards, American Express offers the best of both worlds.
The impact of COVID-19:
American Express helped struggling Americans by offering forbearance plans to those most affected by COVID-19. Moreover, with help from Deliveroo, the two companies joined forces to provide more than 500,000 free meals to healthcare workers. In addition, American Express also donated more than $6 million to help health organizations combat COVID-19. To learn more about American Express’ hardship programs, you can call the company at 1-800-528-4800 or use the app/website’s chat function.
Amazon lets you Buy Now, Pay Later with no interest or credit check on select items. When the option is present on the main page or during the checkout process, you can select the monthly installment method and finance the purchase over four to 24 months. A $50 minimum applies to all purchases, and a down payment of approximately 4% to 25% of the transaction often applies. Like American Express, you need a credit card to Buy Now, Pay Later on Amazon, but its extensive product catalog makes it an attractive retailer.
Pros:
Like Affirm, Amazon provides BNPL and POS loans.
There is no interest.
There is no credit check.
Terms of up to 24 months are available.
Cons:
You have to make a down payment.
Financing is not available for all products.
Like American Express, you need a credit card to use the service.
Who is the app best suited for?
With many items available, you can Buy Now, Pay Later on Amazon for everything from furniture to electronics.
The impact of COVID-19:
While Amazon doesn’t list any COVID-19 policies, you can inquire about loan deferrals by calling 1-888-280-4331 or using the app/website’s chat function.
While Best Buy’s BNPL service is costly for items financed over long periods, it’s a worthwhile program if you repay the balance within 90 days. For example, you can borrow anywhere from $149.99 to $4,000, and residents in states like New York and California incur APRs of 0% to 5.9%. As a result, if you’re confident that you can repay the funds within three months, Best Buy’s BNPL service is a great short-term financing tool for electronics. Also, service is not available in Minnesota, New Jersey, Vermont, Wisconsin, Wyoming, or Puerto Rico.
Pros:
Like Affirm, Best Buy provides BNPL and POS loans.
You can obtain APRs of 0% to 5.9% if you repay the loan within 90 days.
Financing is available for hundreds of products.
Cons:
The program is not available in all states
Terms of more than 90 days are costly.
Like Amazon, you need a credit card to use the service.
Who is the app best suited for?
If you want BNPL electronics, Best Buy is a great option as long as you can pay off the balance within 90 days.
The impact of COVID-19:
Doing its part to help struggling Americans, Best Buy offered hardship exceptions to borrowers financially impacted by the pandemic. In addition, the company extended the grace periods on several of its monthly payment plans. To find out if help is still available, you can call Best Buy at 1-888-237-8289 or use the app/website’s chat function.
Zebit is helpful if you have poor credit. The company’s product catalog has everything from Apple iPhones to Microsoft Surface laptops to Samsung TVs. However, items are often overpriced, and like Afterpay, you need to put 25% money down. In addition, there is an 18% handling fee for electronic gift cards. As a result, it’s cheaper to use other BNPL lenders like Affirm and Klarna if you can qualify. If not, you may consider Zebit a practical alternative. For your reference, Zebit lets you borrow anywhere from $1,000 to $2,500, and like many of the other companies on our list, there are no fees, interest, or minimum credit score requirements. However, the service is not available in Washington, D.C.
Pros:
Like Splitit, Zebit provides BNPL loans.
You can borrow $1,000 to $2,500.
There is no interest.
There are no fees.
There is no credit check.
Cons:
There is a handling fee for gift card purchases.
Like Afterpay, You need to put money down.
Products in Zebit’s catalog are often overpriced.
You can’t apply if you live in Washington, D.C.
Who is the app best suited for?
If you can’t obtain approval elsewhere, Zebit is a solid fallback option.
The impact of COVID-19:
COVID-19 didn’t change Zebit’s policies. However, to inquire about potential hardship programs, Zebit recommends that you submit a request through its help center.
HSN is a shopping network that lets you Buy Now, Pay Later with no fees, interest, or credit check, and terms of two to five months are available depending on the item. Like QVC, you pay your taxes and shipping upfront, and you need a credit card to participate. Most phone purchases are capped at $500, while gaming items have a $1,000 maximum, computers (desktops, laptops, tablets) are $1,500, and TVs are $2,500. Moreover, jewelry purchases often have a $1,000 limit, while coins are $500. However, if you sign up through email, you can receive 15% off your first purchase.
Pros:
Like QVC, HSN provides BNPL loans.
There is no interest.
There are no fees.
There is no credit check.
HSN has daily specials on various products.
Cons:
Like QVC, you need a credit card to use the service.
Some items have price limits for BNPL financing.
You must pay taxes and shipping upfront.
Who is the app best suited for?
If you already have a credit card and enjoy watching product demonstrations, HSN may be the Buy Now, Pay Later site for you.
The impact of COVID-19:
COVID-19 didn’t change HSN’s policies. However, if you’ve run into financial trouble, you can call HSN at 1-800-284-5757 or use the app/website’s chat function to learn about the hardship options available.
Like HSN, QVC is another shopping network that lets you Buy Now, Pay Later with no fees, interest, or credit check. Terms of up to five months are available, but you have to pay your taxes and shipping upfront. QVC has thousands of available products, and on-air demonstrations let you see the product before you buy it. Moreover, QVC and HSN have one-day specials that offer plenty of value.
Pros:
Like HSN, QVC provides BNPL loans.
There is no interest.
There are no fees.
There is no credit check.
QVC has daily specials on various products.
Cons:
Like QVC, you need a credit card to use the service.
You must pay taxes and shipping upfront.
Who is the app best suited for?
Nearly interchangeable, you may prefer QVC’s Buy Now, Pay Later service over HSN due to the lower amount of money down.
The impact of COVID-19:
COVID-19 didn’t change QVC’s policies. However, to learn more about potential forbearance options, you can call QVC at 1-888-345-5788 or submit an inquiry through the app/website’s chat function.
Like Amazon, Microsoft has longer-term financing options that don’t incur interest. Desktop, laptop, tablet, video game console, Office, and smartphone purchases of at least $900 qualify for monthly financing. Most transactions range from $1,700 to $6,700 with terms from 12 to 18 months, and Citizens Financial Group is Microsoft’s partner lender. However, you may need good or excellent credit to qualify. But unlike most BNPL companies, Microsoft lets you spread your payments out over more than six weeks without charging any interest. As a result, it’s a great tool to help make electronics purchases fit within your budget.
Pros:
Microsoft provides POS loans.
You can borrow $1,700 to $6,700.
There is no interest.
Cons:
Like Amazon, you need a credit card to use the service.
You will incur late payment and other potential administrative fees.
You may need good or excellent credit to qualify.
Who is the app best suited for?
Microsoft has everything you need if you’re a college student or a professional working from home.
The impact of COVID-19:
Doing its part during the pandemic, more than 1,300 Microsoft employees helped run a mass-vaccination site in Seattle, Washington. Moreover, the firm committed more than $110 million to support workers, schools, and nonprofits in the state while awarding more than 150 grants to global projects fighting COVID-19. To learn more about how Microsoft can help, you can call the company at 1-800-642 7676 or submit a request through its help center.
Perpay partners with more than 1,000 brands like Apple, Samsung, Beats by Dre, Nintendo, Michael Kors, and KitchenAid. Your spending limit depends on Perpay’s algorithm and your cash flow. However, loans are interest-free, and you can repay the funds over one to four months. But you need to provide your direct deposit information to qualify, and your item won’t ship until Perpay receives the first payment. As a result, you have to wait until payday if you don’t have the funds in your bank account.
Perpay’s credit builder program is also helpful if you want to repair your credit. The BNPL company sends your repayment history to Experian, Equifax, and TransUnion when you enroll. When analyzing more than 5,000 members, Perpay found that participants’ credit scores increased by an average of 39 points. Therefore, Perpay can help you rebuild your credit while you shop.
Pros:
Like Splitit, Perpay provides BNPL loans.
There is no interest.
There are no fees.
There is no credit check.
Using the app can help rebuild your credit.
Cons:
Not all applicants are approved.
Your item won’t ship until Perpay receives its first payment.
Who is the Buy Now, Pay Later app best suited for?
Perpay lets you enjoy all of the benefits of BNPL financing while also helping you rebuild your credit score.
The impact of COVID-19:
To help win new clients during the pandemic, Perpay unveiled a new referral bonus that pays you and the recipient $100 when the new member makes their first payment. For context, the recipient receives the $100 upfront, and you cash in once a purchase is in order. However, it’s a solid bonus offer if you’re already a proud member of the Buy Now, Pay Later firm. To inquire about forbearance policies, you can call Perpay at 1-215-834-4200, email hello@perpay.com, or use the app/website’s chat function.
How Do BNPL and POS Loans Differ?
While both products allow you to purchase an item immediately and repay the debt over time, most BNPL loans have six-week terms and don’t incur interest. Most POS installment loans have terms of a few months to a few years, and some incur interest. For example, Affirm lends up to $17,500, with typical APRs of 10% to 30% and terms of three to 12 months. Klarna has customer-specific loan maximums, with regular APRs of 10% to 24.99%, with terms up to 36 months. American Express lets you borrow up to $1,000, with a monthly finance charge of up to 1.33% per item and terms of three to 24 months.
BNPL and POS loans are similar since both let you finance items on your shopping list. However, the higher loan amounts and more flexible terms make POS loans more like personal loans. As a result, if you’re purchasing a big-ticket item, you may prefer POS financing. However, if it’s a small purchase of a few hundred dollars or less, BNPL financing should suffice.
Do POS Apps Guarantee Approval?
Unfortunately, no. It’s uncommon for lenders to guarantee approval since poor underwriting practices can lead lenders to bankruptcy. Most POS and BNPL apps require that you have employment or self-employment income or receive government benefits. That way, they have confidence that you can repay the loan.
In addition, it’s more challenging to qualify for POS than BNPL financing. The reason is that BNPL loans are smaller and repaid over shorter periods. Conversely, POS loans are larger and repaid over longer periods. As a result, POS lenders take more time to review your application and usually have stricter approval standards.
Is My Credit Score An Important Variable?
Under most circumstances, yes. Since POS loans are more like personal loans, borrowers with higher credit scores often obtain the lowest APRs and the best terms. If you have bad or fair credit, you can still qualify. However, your APR may be near the high-end of the range, and the terms may be less affordable. As a result, it’s prudent to think of a POS application as submitting a personal loan application.
What Are the Pros and Cons of POS Financing?
To help make the decision process a little easier, please consider POS loans’ good and bad qualities.
Pros:
Larger loan amounts make POS financing similar to personal loans.
APRs often max at 35.99%.
Some POS companies don’t charge interest.
Terms extend from a few months to a few years.
You receive the item right away.
BNPL apps approve borrowers with bad credit.
Applying won’t impact your credit score.
Cons:
POS financing can lead to overspending.
Applying for a personal loan may result in better terms.
If your APR exceeds 20%, a credit card may be cheaper.
You can’t borrow more than the purchase amount.
Missing payments can hurt your credit score.
If you default and your POS loan shifts to a debt collector, it can severely impact your credit score.
Can I Use POS Apps to Pay Bills?
You can’t use BNPL or POS apps to pay bills. These companies allow you to purchase products at their partner stores, and your loan amount should match the item’s price. Therefore, while BNPL and POS apps are great alternatives to payday loans, you can’t use the funds to buy groceries, pay your rent, or fix a broken window.
In contrast, loan apps like Dave, Brigit, Earnin, and MoneyLion provide cash advances up to $300 or more in some cases. Also, we reviewed more than 15 lenders and found that many have 0% APRs, and some don’t charge any fees. As a result, while BNPL and POS financing can fulfill all of your shopping needs, cash advance apps are great for when you need emergency financing.
Why Did We Select These Apps?
The lenders on our list offer the best assortment of products and provide BNPL or POS financing at little or no cost. Most companies don’t have a minimum credit score requirement, and they often approve your application without a credit check. They also partner with the most popular brands and make it affordable to finance items over a few months or more.
Conclusion
POS and BNPL loans let you purchase items today and repay the funds later. And they’re great for short-term purchases and offer a prudent pathway to participate in retailers’ flash sales when you’re in between paychecks. Moreover, the products also help you avoid payday loans with shorter loan durations and an average APR of 400%. As a result, BNPL and POS apps like Affirm, Klarna, Splitit, and Amazon are much more affordable than similar products.
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