“Buy now, pay later” sites are becoming increasingly popular. During the recession, many people closed their credit cards accounts to protect their credit or to avoid default. This led much of the population looking for other options for payment. Buy now pay later sites are an alternative to credit cards that allow customers to immediately have access to their merchandise, while paying on the bill monthly. These sites basically offer a line of credit that rewards the customer with more credit as they prove they are responsible payers.
What are the Benefits of Buy Now Pay Later Sites?
Consumers on a budget need to save money. However, the merchandise is not always on sale when the consumer has the money. Alternatively, the consumer may have the money, but they need to retain their cash in the event of an emergency.
“Buy Now, Pay Later” sites allow the customer to establish a monthly payment plan and obtain their merchandise immediately. For those that are on a “cash only” budget, these sites can be lifesavers, especially if you need a product that you cannot afford at the time you need it.
“Buy Now, Pay Later” sites are also known as “Bill Me Later” shopping or “Credit” shopping. They allow customers to buy items when they have no money in their bank account. The process is convenient and fast.
Typically, the sites will ask for basic information to determine whether the customer is approved or not. If the customer is approved, they will have a specified period of time to pay.
Review of Buy Now Pay Later Sites
GrandPointe is “Buy Now, Pay Later” site that offers all types of merchandise that the client can choose from. Clients will start off with a $100 credit line. If the customer successfully pays off that amount, they will be increased to a higher credit limit. Consumers can reach a $500 credit limit or higher, depending on their payment history.
At GrandPointe clients may take advantage of purchasing products such as household goods, furniture, electronics, personal care, gifts, jewelry and other merchandise that you may need. All of the products are offered directly on the website.
Your monthly payment will vary based upon the amount you charge. For instance, a balance of $45 will require a minimum of $7.99 payment. The monthly minimum will vary based upon the balance due.
Seventh Avenue approves each purchase at the time of the transaction. This online website offers furniture, home décor, bed and bath, electronics, jewelry, fitness and outdoor goods. Consumers may order online or through their catalog.
The process is simple and takes a matter of minutes to become approved. Once approved, your monthly payments will depend upon your balance. For instance, the monthly payment on a $200 balance is $20, and the monthly payment on a $400 is $25. Consumers may have credit extended to them for up to $2400 with monthly payments of $80.
A finance charge accrues if the balance is not paid in full within 25 days. Payments may be made online with all major forms of payment including Visa, Mastercard, American Express, Debit Cards and Checking Accounts. Payments may also be made by phone or by mail.
Wal-Mart has a relationship with a third party vendor called “Bill Me Later.” This company allows customers to buy products on Wal-Mart’s site and obtain a credit line for six months or more. A promotion for six months with no interest is often available.
The interest rates on “Bill Me Later” sites are typically high. This company sets the interest rate at 19.99% or higher. Therefore, you are paying 20% more for the convenience of buying the product online through this site.
Furthermore, consumers with challenged credit may not be approved by the site. These consumers are viewed as high risk and lenders will not take chances with these consumers. You may not be able to take advantage of this option if you are not approved by the lending provider.
Consumers can view “Buy Now, Pay Later” as a convenient way to receive credit with a particular store. Since the approval amount is small, lenders can help consumers manage their finances better.