World running on financial assets always requires an instant pay method complying with daily needs. The introduction of credit cards became an object of reliance and luxury in came you are doomed to a shopping spree. Several apps in the market are also working as full-time credit-based workhouses. 

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But the fresher of the era, or you can say the next trendiest way of getting monthly credits without making much effort. Let me introduce you to the world of BNPL (Buy Now Pay Later), where you can run around and buy as many stores as you like. Still, you will be backed up by these companies. And what’s the favor we have to return? 

Just pay the bills by either splitting into weeks or whatever feels convenient. The biggest pro of this system is you can withdraw based on your needs. So you can entirely rely on this financial service even with bad credit scores. 

Top 8 Best “Buy Now Pay Later” Apps in the US

Top 8 Best “Buy Now Pay Later” Apps in the US

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Below mentioned are some trendy ones currently running the whole financial system in the USA.

1. AFFIRM 

People looking for long-term loans with low installments paid over time have affirmed on their side. The overall best point on sale app is affirmed, with a loan given for 1 month to 2 years — quite a huge amount of time for just an app-based financial service.

Top 8 Best “Buy Now Pay Later” Apps in the US

But, as I mentioned, it is overall the best one compared with other market competitors. Interest to be given is a bit on the higher side, starting from 0 to 30%. 

The interest rate depends on how big the amount you have asked for in the loan, the duration of payment, etc. It has been the number one choice because of its easy availability in any store. In addition, affirm has scored a direct A+ Better Business Bureau scoring.

Although your history of credits and how well you are following returning policy are also checked superficially. Delay in all these factors can affect your loan amount next time you need some.

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Pros
  • More than 12000 sales are joined through this system in various portals like amazon

  • Late fine is not added to the current credits

  • Loans paid on weekly basis with 0% interest are not reported to Bureaus

Cons
  • Loans at 0% are the only wallet efficient kind if you don’t have to pay a big amount of interest

  • If loans are reported to Bureaus, credit scores might see a downfall irrespective of efforts.

2. SEZZLE 

Are you looking for a short-term deal with BNPL with no reporting, drama, and installments made as per the customer’s convenience? Then, Sezzle is the choice for you. This BNPL has its origin in Minneapolis. Sezzle is certainly a big advantage for those in constant uncertainty regarding their payment dates. Also, it provides a reschedule option after every installment is paid.

Short-term loans are quite affordable and easily payable, ranging from approximately 2500$. Or you can opt for a longer scheme of approx 5 years where you can be provided with a loan of a minimum of $30000. Quite fascinating, right ! one app has dual benefits.

The amount of retailers already is pretty humongous, making it pretty reliable. Online or personal services are both available in Sezzle, covering every sector. Although no fine is charged on the late arrival of installments, it will disqualify the payment.

Pros
  • Payments can be delayed by up to 2 weeks

  • Zero % interest on the amount

  • Option to reschedule available for free under some conditions

Cons
  • It does not provide full financing and needs a 25% Down Payment

  • Additional rescheduling of payments is done at a fee

3. AFTERPAY

Afterpay is an Australian corporation that operates in Australia, New Zealand, the United Kingdom, the European Union, Canada, and the United States. It presently has 16 million international subscribers. In addition, it collaborates with 100,000 companies, giving clients a wide range of options.

You can shop at participating retailers online or in-store and incur no charges or interest as long as you’ve got up with your payments. Furthermore, every purchase you make is subject to a fast approval decision based on sensible credit restrictions, making it ideal for students with restricted financial resources.

The complete process for the same is that you get a wallet and a virtual card number once you download the app. Then you make a purchase, and if it is approved, it will be divided into 4 equal installments. The installments will be two weeks away, and you do not have to pay anything extra if you pay on time.

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Pros
  • It has a system called smart credit which protects you from overspending.

  • Zero extra charges if repaid in time.

  • Option for Reminders for payments so you don’t miss any.

Cons
  • Payments and purchases are approved by the app and it may decline your payment.

  • Heavy Late payment charges.

4. SPLITIT

Top 8 Best “Buy Now Pay Later” Apps in the US

Splitit was created in 2012 and is a listed company situated in New York City. To increase its offerings, the company has worked with many big e-commerce companies.

Customers can keep using their Visa, Mastercard, and Union Pay bank cards to collect rewards and repay in time with Zero interest with Splitit. Splitit does not impose interest or fees on its customers, including late fees. But the owner companies of your credit cards can still charge you interest.

When you make a purchase, the complete purchase amount is deducted from your available credit as a pending charge on the credit card. When a bill is due, it will be billed to the cards, and the outstanding balance will be lowered by the same sum. The process is repeated until all payments have been received.

Pros
  • Split it uses your own credit card limits instead of creating new limits

  • No new paperwork is required to register on the app

  • Easy payments and no approval required for purchases.

Cons
  • Not available for people without existing credit cards as it works on the existing cards’ credit limit

  • Cannot go further than own cards credit limit.

5. PREPAY

Perpay is based in Philadelphia, Pennsylvania, and was launched in 2014. Perpay was rated the fifth-fastest-growing private firm in 2019 by Inc. Magazine, with over three million subscribers. 3 Through the Perpay marketplace, customers may shop from over 1,000 top brands.

In addition, on-time payments raise a customer’s credit rating by 39 points, giving it an advantage over consumers with terrible credit who are striving to fix it.

Perpay is the best available app for people with terrible credit since it does not examine credit records and instead sets spending limitations based on your verifiable income. Clients can find their credit limit and begin purchasing within 1 min of completing their Perpay profile. Your things will not dispatch until you have paid your first payment, usually your next payday.

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Pros
  • Perpay does not give credit based on previous credit history or ratings

  • The credit limit is based on the present earnings of an individual

  • Flexible repayment options are divided into a number of payments in multiples of 4 from 4 to 16.

Cons
  • Can only shop at the app’s own e-commerce store. So the choices are limited

  • Shipping of the product ordered only happens after the first payment.

6. PAYPAL “PAY IN 4”

PayPal was one of the first online payment services for person-to-person transactions. For years, it has been spreading to the physical market and e-shopping, and it is currently among the most widely accepted payment methods.

Pay in 4 is accepted at millions of online businesses, including Coach, Best Buy, and Target,  establishing it as the preferred method for minor purchases.

A PayPal account is a must that is connected to your savings account, bank card, or credit card to use Pay in 4. Then, when you check out with PayPal, choose Pay in 4 to obtain a confirmation approval in moments.

The system works in four installments as given in the name. The first one is the down payment, and the other 3 are installments to be made every two weeks from the date of purchase.

Pros
  • One of the most trusted brands worldwide for payments

  • Like Most other BNPL apps, Paypal also provides Zero Interest repayments

  • The PayPal Pay in 4 can be used in more stores than any other app on the list and it counts in millions.

Cons
  • Paypal Pay in 4 is not even available in all the 50 states of the USA

  • Every purchase made has to be approved by the app in order to be shipped

  • A single credit limit for all people.

7. KLARNA 

Klarna was formed in Sweden in 2005. Since then, it has expanded throughout Europe and into the United States, with 147 million active clients and more than Four hundred thousand retailers spread across 45 countries.

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However, at any retailer that takes credit cards, you can use Klarna to break down any purchases into manageable installments. For example, your credit is unaffected when you pay in four installments with Klarna.

These apps work because you have to create a digital card on the app during checkout and then use that information to finish your transaction. One of the repayment options is to make four equal payments on your purchase.

One is due right away, and the others are due every two weeks. Klarna will not charge you any interest or fees if you complete all of your planned repayments.

Pros
  • You are almost sure to get what you want as the app works with any store that accepts credit cards. Which is like all of them

  • Again, In klarna also there is no penalty or interest when repayment is done on time

  • Unlike other BNPL apps, Klarna provides rewards and points for purchases made using the app.

Cons
  • Just like Paypal and some other apps, Each purchase made has to be approved by Klarna.

8. ZIP

Top 8 Best “Buy Now Pay Later” Apps in the US

Zip offers a similar service to Afterpay: customers can place an order and settle that off in 4 Zero interest installments spread out over six weeks. However, Zip has a price restriction on purchases, similar to PayPal’s ‘Pay in 4’, so a person can only purchase goods of up to $1,500. 

Like other BNPL companies, Zip does not disclose these advances to credit bureaus. It also doesn’t run credit checks on customers before authorizing them for a loan.

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One of the most significant advantages of zipping is its superb user-friendly interface and ease of use at any store. Customers may shop from over 51,000 merchants worldwide, like  Apple, Zara, and ASOS, using the Zip app or browser extension.

Pros
  • Zero interest payment option when paid back on time

  • Like Most other BNPL apps, ZIP does not provide the credit details to credit rating agencies so your credit score is safe while shopping with ZIP

  • Along with not providing any of your credit details to the agencies, they do not check your credit history either.

Cons
  • There is a fixed fee which is levied every time you buy something. And it is 1 dollar per installment. Totalling 4 Dollars

  • It is a short tern BNPL plan with 6 Weeks as its upper limit

  • Hefty late payment charges.

The Conclusion

When choosing your preferred BNPL app from the above list, you have to be careful about all the different Pros and Cons. Some cards may be the best for one person and a nightmare for others. Therefore it is important to know your requirement and budget well before going for them. But a basic rule would be to look out for these 3 key features-

  1. Interest Rate – Many BNPL providers provide a 0% Interest rate, an obvious requirement.
  2. Risk to Credit score – Make sure that your BNPL provider does not share your details with Credit rating agencies to avoid losing any credit points.
  3. Usability – A BNPL provider must have connections with large e-commerce companies and shops, so you do not get stuck. The one that covers the most retailers would be the best choice in this regard.

Great! Now you are ready to go for your First BNPL Purchase. Have Fun!

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