Afterpay reviews from consumers and experts are outstanding. However, the buy now, pay later app has some limitations. Afterpay allows you to make purchases online and in-store now and pay for them later using one of two options, depending on the payment plan you choose.
Either way, the company will never make a hard pull on your credit, and one of the choices is entirely interest-free. Here’s what we learned while researching Afterpay, including how to use it so you can decide whether it’s right for you.
Pros
BBB accredited
No hard credit checks, even for long-term financing
Limited payment rescheduling is available
Highly rated company and app
Cons
Low initial spending limit of $600
High interest rate of 35.99% possible with long-term financing option
Monthly payment option not available in all states
Afterpay Reviews: Features and Benefits
Afterpay lands in a prominent spot in our review of the best buy now, pay later providers. Despite its somewhat limited payment options, initial spending limits, and a potentially high interest rate associated with its Pay Monthly selection, customers love it, as reflected in many Afterpay reviews. Here are its most notable features.
- Pay in 4 and monthly payment options available
- Pay no upfront transaction fees
- Use online or in stores
- Reschedule up to three payments per year by one week
- No interest on Pay in 4 plan
- Spending limit can increase over time
- Soft credit inquiries only, will not affect your credit score
- 6 to 12-month term borrowing is available
- $8 late payment fees up to a maximum of 25% of purchase
- A paid membership with benefits is available by invitation
- Autopay is available
Afterpay Reviews: Editorial Rating
Trusted Company Reviews Rating Score for Afterpay: 9.0
Our judging criteria earn the Afterpay app and company 9.0 points out of 10. Afterpay offers consumers two payment types, including its Pay in 4 selection and its Pay Monthly option. Customers will never be subjected to a hard credit pull when working with Afterpay, even for its monthly payment plan.
However, some limitations associated with Afterpay keep it from earning a higher spot in our overall review. New users will have a spending limit of $600 and only have the ability to have one purchase agreement open at a time until they prove to Afterpay that they’re creditworthy.
Additionally, residents of Hawaii, Nevada, New Mexico, and West Virginia aren’t eligible to use the company’s Pay Monthly plan.
Payment Options | Checkout Details | Interest | Limits |
Pay in 4 | 25% down payment, make 3 additional payments in two-week increments until paid | 0% | Early users will have an initial $600 limit |
Pay Monthly | Pay monthly with 6 to 12-month terms | Up to 35.99% | $400 minimum |
What We Like
While many BNPL apps have fewer limitations than Afterpay, one limitation the app provides makes particularly good sense for the company and consumers. Should you have a late payment due, the app will restrict you from making any further purchases until the situation is resolved. That may not seem excellent when you’re standing at the cash register. However, the feature can keep you from getting into financial trouble when using it.
We also like that customers can adjust their payment date by up to a week three times per year without penalty. Additionally, no transaction fees ever apply to you, the buyer, and you’ll only face fees if your payment is late. Late payment fees are $8 or up to 25% of the associated purchase.
What We Don’t Like
Despite its lofty consumer reviews, there are some things we’re not fond of when talking about Afterpay, including the following items.
- Low initial spending limit
- Only two payment plan options
- You can only cancel autopay for the Pay Monthly plan by going through the company’s website Help Center. No phone number is provided,
- and the action isn’t available in the app.
- Afterpay’s maximum interest rate for its Pay Monthly plan is high, at 35.99%.
- Shorter monthly payment term than most competitors
About Afterpay Buy Now Pay Later
Afterpay is a relatively simple BNPL app that allows only two ways to make payments after your purchase. The Pay in 4 option requires a 25% down payment at the time of purchase, followed by three equal interest-free payments every two weeks for the next month and a half.
The Pay Monthly option is reserved for purchases of $400 and above and allows you to pay over time in equal monthly payments for between six and 12 months. Choosing this option will subject you to paying interest rates on your purchase of up to 35.99%.
You can make payments to Afterpay using your debit card, credit card, or bank account, and you can adjust your payment due date up to three times annually without penalty. Both the Pay in 4 and Pay Monthly options can be set up with autopay to help ensure you don’t miss payments.
How Does Afterpay Work
Afterpay’s limitations aren’t restricted to its payment plan options. To use the app, the merchant you’re purchasing from must accept Afterpay, and its partner network is smaller than many of its competitors. There’s a workaround called Afterpay Plus, a paid subscription that costs $9.99 monthly and allows you to shop anywhere Visa and Mastercard are accepted.
That said, Afterpay works similarly to any other buy now, pay later app. Simply choose the option at checkout, enter the amount of the purchase, and agree to the payments.
Pay in 4
The standard payment option when using Afterpay is its Pay in 4 selection. You’ll pay 25% upfront at checkout and make the remaining three equal and interest-free payments bi-weekly for six weeks.
Pay Monthly
The Afterpay Pay Monthly option is one of the few available BNPLs that won’t perform a hard credit check before approving you ot use it. Make no down payment and simply agree to the monthly payment terms at checkout to initiate the payment plan of between six and 12 months. No extra fees are associated with this option. However, you will pay accrued interest of up to 35.99% for the convenience.
Afterpay Plus Subscription
While Afterpay’s retailer network is smaller than some BNPLs, you can still use the app’s virtual credit card option at out-of-network merchants. To do so, you’ll need to sign up for the app’s Afterpay Plus subscription. The subscription costs $9.99 a month with no additional fees for use.
Afterpay Eligibility Requirements
While Afterpay will never do a hard credit pull, customers must meet a few basic requirements to use the Afterpay app.
- Be at least 18 years old
- Be a U.S. resident
- Have a valid address
- Have a valid email account
- Have a valid cell phone number
- Have a valid debit or credit card account
- Be authorized to use the payment method you state
- Pass identity verification
- Have the ability to enter a binding contract
Does Afterpay Check Credit?
Afterpay is one of only a handful of buy now, pay later companies that will never perform a hard inquiry on your credit report. However, the company will still collect your Social Security Number to perform a soft credit check. The soft check won’t affect your credit score or appear on your credit report.
Afterpay Reviews
Afterpay is accredited by the Better Business Bureau and scores well with consumers and experts on numerous platforms. At publishing, 92% of Trustpilot reviewers granted Afterpay five stars in their reviews. The company averages 4.7 stars on the platform. Simplicity and ease of use top the list of reasons why customers love it. On the negative side, Afterpay’s lack of live customer service agents is an issue for some.
Who Afterpay Is Best For
Because Afterpay will never perform a hard credit inquiry and won’t allow users to continue making purchases if they fall behind on payments, the app can work well for those with fair credit who don’t have access to other options. While Afterpay’s payment plan selections are limited, it can be enough for those who wish to split up payments with no interest involved.
Afterpay Vs Klarna
Afterpay and Klarna are both BNPL options with much in common, such as the inclusion of interest-free payment options and limited service or transaction fees. However, Klarna edges out Afterpay on a couple of levels. First, Klarna offers a lower maximum APR than Afterpay. Second, Afterpay places an initial maximum spending amount on new users’ accounts.
Afterpay | Klarna | |
Payment options | 2 | 4 |
Fees | None / $8 late fee | Some transaction fees / $7 |
Maximum APR | 35.99% | 33.99% |
Limits | $600 initial maximum | None |
Afterpay Alternatives
Afterpay offers a good solution for breaking up payments into more easily manageable chunks. However, the app has some limitations that may make other BNPL solutions more attractive.
Additionally, consumers can also choose from a range of other financing options, such as using one of the best credit cards for fair credit or, pursuing a personal loan to make a large purchase or consolidate debt. Each option has various benefits.
Here are some other buy now, pay later reviews to help you decide which is best for you.
Frequently Asked Questions
Is Afterpay safe?
Does Afterpay affect your credit score?
Source
Logo image source: afterpay.com
Deane Biermeier
Editorial Reviews
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