Buy Now Pay Later Loans

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Buy now pay later no credit check instant approval Australia

What does buy now pay later mean?

Loads of Australians are apparently cutting up their credit cards and converting to interest free buy now pay later models. These are offered by the likes of  zipPay and  Afterpay. Basically, this works as an interest free model because the fintechs have agreements with the retailers where they take a commission on the sales value. As a consumer you don’t see this, you are just able to pay over instalments for the goods bought. Kind of like a layby but you get the goods straightaway.

Are there Costs ?

Well yes, of course there is no such thing as a free lunch. But these costs are borne by the retailer unless there is a problem with repayments. Then these default charges are passed onto you, the consumer. This can still work out as much cheaper credit as long as you meet your repayment commitments on time.

Which retailers can buy now pay later be used?

The list of retailers that have signed up with the likes of Afterpay is increasing all the time as they realise what the benefits to their monthly sales figures can be. Here are a few examples

Big W  Officeworks
Mimco David Jones
Country Road Myer
Foot Locker Mecca
Witchery Webjet
Camera House  

How to use buy now pay later

The process is really simple but may get harder as this industry gets regulated. All you need to do is sign up online or in store, often you can get on the spot approval although with some services this may vary. Make your purchase and then make sure you are ready to pay back your purchases, which are normally direct debited from your nominated bank account.

Downside and pitfalls of buy now pay later services

Like with most things in life, be careful and make sure you understand what you are getting into. One of the biggest we see with these services offered by the likes of Afterpay is overspending or spending money you just don’t have or can afford. We understand what it can be like, you see that dress and know it was made for you, that new bike is on sale and just to good to pass up on, however you should never purchase items, no matter how good you look in them, if you cannot afford it.

Also watch out for those hidden fees and late repayment fees and interest charges as these can be much higher than expected. Another issue could be that the service is not offered in stores where you are shopping.

One of the other downsides are refunds and returns. Because you have effectively bought the goods through a third party, the refund will go to your service provider and they will refund you … at some stage. This can end up being quite complicated.