![]() Payment options: AfterPay offers a four-part, interest-free payment installation plan. Where to use it: A wide range of millennial-friendly, mid-range clothing beauty, and fitness retailers (think Madewell, Ulta, Coyuchi, and Sakara). After you’ve signed up, you can shop through AfterPay’s site, or go to a specific retailer’s site and select AfterPay at checkout. How it works: You can sign up on AfterPay’s website by providing basic information (name, contact, address), without providing a credit check. TLDR: Affirm is likely best for people who already have a good credit score (if you don’t, you might get hit with interest fees up to 30 percent) and for larger, higher-priced purchases, like a Peloton bike or a Casper mattress, that you might want months, rather than weeks, to pay off. ![]() The amount of interest you are expected to pay will be shown before you checkout. The fine print: There are no late, prepayment, or annual fees, but you will be charged an interest rate of 0 percent to 30 percent for most products - though some have 0 percent interest, which is indicated on Affirm’s site - determined in part by your creditworthiness, which depends on factors including your repayment history and credit score. ![]() If you want to use Affirm at a store that has not partnered with the company, you can apply for a loan through Affirm’s website or app, and then receive a virtual credit card that you can use in the way you would a standard credit card (enter the number at checkout, pay when your balance is due). You can make a payment using a debit or credit card through Affirm’s website or app, or mail in a check. Payment options: Affirm offers payment installation plans that span three to forty-eight months. Where to use it: Peloton, Audi Service and Parts, Dyson, a diamond company - Affirm has partnered with a number of higher-end brands across home, fitness, auto, apparel, and electronics categories. In the company’s terms of service, Affirm is described as a “closed-end installation loan product,” which means that when you use Affirm to pay you are essentially taking a loan from the company and paying it back over a fixed period. Upon approval, Affirm offers shoppers payment options ranging from 0-30% APR and payment terms from 3-48 months. When you checkout, Affirm will determine (in real-time) your eligibility to use their service to pay at the time of purchase. Once you’ve signed up, you can look for the Affirm logo on the checkout page of online retailers (or any retailer in Affirm’s website and app directories). How it works: You can sign up for Affirm either on the company’s app, or do so at checkout on retailers’ sites where the payment option is available. To find out the pros and cons of each of these new companies, we’ve broken down how they work and what, if any, catches you should be aware of before using them for online shopping. Of course, after-pay programs might sound too good to be true, and sometimes they are - rife with small print, some come with high late fees and interest charges. What differentiates Affirm, AfterPay, Klarna, and QuadPay from traditional layaway programs, though, is that you don’t have to wait until the purchase is paid off to get your goods - and each is branded in particularly “millennial-friendly” ways, with accessible start-up-y how-to guides, and apps that you can use both to shop and make payments. Offering various payment installation plans, these companies are a new spin on the old concept of layaway, a payment plan in which shoppers pay for their purchase in installments, and can only collect the item from the retailer once it’s paid off in full. Their logos can be found on the checkout pages of a wide range of online retailers - everywhere from West Elm and Amazon to Urban Outfitters and Sephora, and even on some airlines. Over the past couple of years, a new crop of “shop now, pay later” companies have emerged, including Affirm, AfterPay, Klarna, and QuadPay.
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