Buy Now Pay Later Sites: Retailers Offering Deferred Interest
Signing up with a retailer’s deferred interest program will give you the same benefits as the buy now pay later sites do. For the holiday’s, many retailers and department store credit cards offer special financing programs to lure customers to purchase their holiday needs from them. We are sure that you are very familiar with TV ads and website banners that offer “No payments & Interest for 12 months” or other similar offers such as “buy now, now pay later bad credit”.
While these kinds of offers are enticing and can offer a solution to your needs, they can also bring on a whole bunch of issues as well. Therefore, we ask that you make certain to read and understand all of the fine print that comes along with each offer. Additionally, make sure you have the cash available to pay off any of your purchases otherwise you can be hit with hefty interest charges, penalties and possibly a downgrade to your credit score.
How Does Deferred Interest Programs Work?
These kind of interest free or deferred plans mean that you will not pay any interest on your purchases you make when you shop in their store or shop online using the stores credit card (or other allowed payment method) as long as you completely pay off your balance by the plan end date (can be 6, 12, 18, 24 or more months) and avoided any late payments.
The credit card company must tell you when you need to pay off your purchase balance in order to avoid any interest on the front page of your credit card statement.
Your interest is calculated each month based on your monthly balance since you made your purchase. Therefore, if you have a 12 month deferred interest plan you will be charged interest for each month you owed a balance during the 12 month period. This can add up to a whole lot of money (take it from me, I did this once and it is crazy at how much you have to pay).
Deferred Interest Plan Offers
Many of the retailer’s credit card offers are managed by large financial companies such as GE Capital and Citi.
In order to find out which retailers are offering deferred interests programs that are similar to that of the buy now pay later sites, we searched the websites of many of the large retailers.
As we did, we noticed that many of the large retailers do offer some kind of buy now program to get shoppers to make their purchases with them through delayed payment options. Some of the retailers are doing this through their own finance offer via their own credit card and others are taking advantage of PayPal’s “Bill Me Later” program.
Additionally, in order to take part in the department store/ retailers programs you must either already have the department store credit card or retailer’s credit card. If you do not have the department / retail store credit card, you will need to fill out a credit card application and be approved.
You may also find that retailers are only offering their programs as follows:
- Online only
- In store only
- On select merchandise only
- Applicant or card holders credit worthiness
Retailers Offering Buy Now Pay Later Style Deferred Interest Programs
There are many retailers that offer deferred interest programs; however, each has their own terms and conditions. We have provided you with the following list to help you understand which of the large retailers offer which kind of programs.
|Retailer||Offers Deferred Interest Plan||Plan Details|
|Amazon||Yes||6 Months Financing > $149|
|Apple||Yes||6 Months Financing < $499; 12 Months >$1598; 18 Months > $1599|
|Best Buy||Yes||6 Months Financing > $149 $499; 18 Months >$429; 24 Months > $599 on qualifying items|
|Home Depot||Yes||12 Months Financing >$299; 18 Months >$999; 24 Months > 1,999|
|Lowes||Yes||6 Months Financing > $299|
|Macy's||Yes||12 Months Financing on Jewelry > $500; Furniture or Mattress > $999; 24 Months Furniture > $1,999 or Mattress > $1,499|
|Office Depot||Yes||6 Months Financing > $299|
|PC Richards||Yes||See PC Richard's for Details|
|Sears||Yes||12 Months Special Financing >$299 on qualifying items|