Buy Now Pay Later

Buy now pay later is exactly how it sounds. You get to buy what you want right away and pay for it at a later date. This “payment delay” period can vary from 1 month to 4 years depending on the retailer and cost of the item.

If, for example, you’re buying an expensive item such as a TV or sofa, you can quite often get at least 6 months where you have to pay nothing. Smaller, less expensive items such as clothes and accessories will only allow you to get a shorter, “pay nothing” period.

Many catalogues and online retailers now offer this credit option to their customers when they open a personal account with them. These include Littlewoods, Very, Jacamo, Fashion World, Simply Be, Marisota and The Brilliant Gift Shop. There are lots more though!

Advantages
There are numerous advantages of using a “buy now pay later” finance plan when you shop online, and most of them are pretty obvious. The main benefit is that you get what you want without having to pay for it immediately. This is ideal for anyone who is currently struggling for cash, or someone who has just moved home, etc.

As with all credit plans, if you repay what you owe on time then your credit rating will improve. Again, this can be vital for those who already have a poor credit rating as many catalogues still accept customers who have a bad credit history.

Disadvatanges
There are a few major drawbacks of using any credit option to buy things and that is that it will usually cost you more than if you bought the item up front. Many retailers will charge you interest from day 1 of you borrowing which can cause the total amount you pay to be far higher than retail price.

If you miss an repayments your credit rating will suffer because of it. This can of course adversely affect your chances of getting approved for credit elsewhere.

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