If you're in the market for a high-tech laptop or dreaming about a new TV in your living room, you may be considering buy now, pay later (BNPL) as a way to pay for it.
While this short-term financing method is offered for a variety of purchases — from furniture to fashion— it can be used to buy big-ticket items online, including new electronics.
Using BNPL gives shoppers the ability to split up a large, one-time purchase into several, more manageable instalments over weeks or sometimes months.
If you’re looking to shop online for a new laptop or gaming system, here’s what to know about buy now, pay later for electronics.
Buy now, pay later can be used to pay for different types of electronic goods. Some common items include:
Consumers can use the buy now, pay later method to spread out payments for expensive electronics purchases. Also known as a point-of-sale loan, there are potential benefits of using BNPL.
Some potential benefits associated with BNPL include flexibility, convenience, and affordability. In some cases, depending on the BNPL option and provider, there may be no interest fees or additional charges. Using BNPL also comes with risks. Always carefully consider if you can afford a purchase and how you will make repayments. Spending within your means is critical.
With BNPL, spreading the cost over time can make acquiring electronics more manageable than having to budget for the full price all at once. Using BNPL, you can spread out the larger expense by making smaller fixed payments over a longer, period of time. It’s important to note that some BNPL providers charge interest depending on the length of the loan period.
For instance, using BNPL could help you buy your child a new laptop before school term starts and then you can make smaller repayments over the start of the term. It could also help bridge a financial gap experienced when unexpected expenses pop up, like replacing a broken smartphone or security system.
Seller return policies should allow shoppers to return items purchased via BNPL. BNPL providers should let consumers know what happens in the case of returns and refunds and what happens with future instalment payments.
Buy now, pay later transactions can be a seamless and relatively easy process. If this type of financing is offered by your retailer, you can select the BNPL payment option during the checkout process and follow any required steps. Depending on the BNPL provider payments can be deducted from your bank account or charged to your debit or credit card.
Some buy now, pay later providers don’t charge interest. Some may charge account opening and account keeping fees and/or late fees. It’s important to stick to any instalment plan as missing a payment could incur fees and charges and/or impact your credit score. Always read the terms and conditions associated with the BNPL financing plan you’re looking at and be sure you understand any potential risks.
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