Buy Now Pay Later Sites: What’s in the News…
We here at buy now pay later sites want to bring you the most up to date information on the various programs, offerings, scams and news available across the internet and where ever else we can get our hands on useful information on BNPL programs.
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Get Your College Degree Using Buy Now, Pay Later Program
There are many things that you can find to buy today and pay for your purchases later, but did you know that you can do that to earn your college degree? The state of Oregon legislative branch is proposing the implementation of a pay later style program. Imagine being able to go to college without have to take out any loans or needing to get a scholarship.
While the state has received a lot of press about the plan with headlines such as “Oregon looking to eliminate tuition & loans for higher education”, students should be a little leery.
There are still many details that need to be worked out before the program proposal can be passed. Overall, the program would allow Oregon public universities and colleges to receive a portion of their graduating students wages once they start working and possibly up to twenty five years after they graduated from college.
The Economic Opportunity Institute has proposed that students attending four-year institutions pay back three percent of their income each year. Those attending two year community colleges would have to pay back 1.5% of their income each year. So in theory, those students who are making more money will in actuality pay more tuition then those who come out of college making less. In order to figure out how much you would have to pay, you can estimate your per year salary times the payback rate times the twenty four year period (yearly salary x payback rate x 24 = tuition). An example of this is if you made $1 million dollars during that time and graduated from a four year Oregon university, your college tuition would be $30,000.
If you live in Canada, the London School of Business & Finance has also launched a buy now, pay later scholarship program which will allow 50 of their students to not have to pay for their tuition until they complete their schooling. In addition, their salaries would need to rise by 50% within two years of completion. If their salary does not increase as prescribed, their tuition is free.
The Good & Bad About Buy Now Pay Later Catalogs & Retailer Programs
These programs & catalogs if used correctly can allow for you to make purchases today and not have to pay the entire amount off until sometime in the future. Just think how beneficial this can be around when you are strapped for cash to buy holiday gifts or for an emergency purchase to replace an appliance that has stopped working.
While the BLPL program can be a saving grace, it can also be a life of pain and outrageous costs if you do not meet the minimum payments that most programs come with. We hear at buy now pay later sites advise that you read and understand the BNPL programs offerings, interest rate and payment process.
There are many brick and mortar retailers as well as internet based catalog companies that offer items such as:
- Airline Tickets – Fly Now Pay Later
- and many more….
The way these programs work is that if you choose the buy now, pay later option when you make your purchase you will be able to defer your payment to a later date using a flexible payment process. The date in which you must pay back the full amount varies by program, store and or catalog. Some stores such as Best Buy have programs that extend the payment for up to two years. The norm however, seems to be around six months.
If you select the BNPL option, you will be made aware of the interest rate charge for the program as well as when the interest free period will expire. IMPORTANT NOTE: DO NOT MISS THE END DATE OR YOU WILL HAVE TO PAY A HUGE AMOUNT OF MONEY FOR ALL OF THAT INTEREST YOU HAVE BEEN ACCRUING AS WELL AS ASSOCIATED FEES.
We have provided a quick sample of several of the more popular BNPL sites interest rate charges.
|Best Buy||Up to 29.9%|
|Seventh Avenue||Up to 23.99%|
|Fingerhut||21.65% plus Prime Rate|
|Argos||Up to 29.9%|
|Brighthouse||Up to 29.9%|
|Freemans||Up to 32.9%|
|Gratton||Up to 34.9%|
We are not the only ones cautioning consumers like you about the use of programs like these. The Consumer Reports magazine recently wrote about the “Deferred-interest Gotchas” and has been picked up by many local new agencies. You can view on of the news agencies video buy clicking here.
Tips to Avoid Late Fees, Interest Charges & Credit Score Issues When Using Deferred Payment Programs
Tip #1. Regardless of whether or not you need to pay the bill in 30 days or 2 years, always make sure you can afford the purchase.
Tip #2. Change your payment due date if you can to be closer to your payday or with a due date that is easy for you to remember.
Tip #3. Make your payments on time and include the right amount owed. We suggest that you send yourself a reminder though your email account.
Tip #4. Set up an automatic payment schedule from your checking account.
Tip #5. Pay off the full amount at the end of the program.
Tip #6. Read & Understand the “fine print” with all offers. If you do not understand something associated with the plan, call the company to ask questions.
Tip #7. If you payment is late, call the company to make them aware and let them know when payment will be made. If you have been good with paying your monthly payments, they may waive any late fees or interest charges.
Tip #8. Check out the FDIC’s “51 Ways to Save Hundreds on Loans and Credit Cards”.
Please be aware that most credit card companies or lenders do not report late payments to the credit reporting agencies until your account is over 30+ days past due. So then what happens if your late payment is reported? Well that depends on a few questions:
- How late were any late payments – >30 days, >60 days, >90 days
- Do you have multiple accounts with late payment reported to the credit reporting agencies
- How long ago was the most recent late payment
Recent late payments can cause your FICO score to drop anywhere from 90 to 110 points if you have a score of >780. Therefore, the higher your credit score the bigger the penalty in points will be.