An emergency can – and will – happen at any time. No matter what happens, it won’t be cheap to fix. If you have a big expense that you need to pay, then you should consider buying now and pay later credit options. Having bad credit makes it difficult to get approved for a credit card or loan, but it won’t make it impossible.
We’ve looked at some of the best buy now pay later credit options and organized a list of the best retailers and lenders to help connect you to the financing you need.
Personal loans are the most flexible loan option. These loans can be used for anything you want, unlike student loans that must go towards your education or a mortgage that you must use to buy a house. You’re free to spend the money however you wish once it arrives in your account.
We find that some of the best lenders are loan marketplaces. Rather than borrowing the money directly from these companies, they connect you with a partner lender who has a loan for you. These systems are great because they connect you to plenty of potential lenders at once to make things easier.
These loan marketplaces typically require you file a preliminary application. The company distributes the application among its partners. Depending on your credit history and financial needs, you could get several offers to choose from or only the best match for your situation. Either way, you can expect to get your money within one business day.
Our List of Best Buy Now & Pay Later Bad Credit Loans:
#1. MoneyMutual – Editor’s choice of Buy Now Pay Later for Best Buy Payment Online
- Short-term loans up to $5,000
- Money available within 24 hours
- Online form takes just five minutes to complete
- Served over two million customers
- Not available for New York and Connecticut
MoneyMutual is a company that provides loans with low interest rates and quick turnaround times. Customers can receive loans for just about anything, even if they have poor or bad credit, and their loan products are transparent. They offer loans from $100 up to $5,000 and their repayment terms can range from six months to one year.
The MoneyMutual application process is conducted in a safe and secure environment for all customers. To begin the loan process, the customer simply fills out a form that is reviewed by a representative of the company. Customers can fill out the form in just five minutes and allows customers to receive loans in as little as 24 hours. If you need a loan the next day, MoneyMutual is the company for you.
#2. CashUSA.com – Instant Buy Now Pay Later No Credit Check for Shop Pay Installments
- Borrow between $500 and $10,000
- Loans approved in minutes
- Money sent directly to your bank account
- Personal loans you can use for any purpose
CashUSA.com is an excellent option if you need a loan but have bad credit. With just two minutes to complete the online form and instant approval within an hour, it’s almost too easy to get a cash advance with CashUSA.com. Unlike other companies in this segment, CashUSA will approve loans for people with poor credit and even allows you to use your loan for any purpose – not just for education or when buying a home.
One of the best things about Cash USA when it comes to getting approved is that they don’t require any personal information such as Social Security Numbers or Driver’s License Numbers. All they want is your basic information such as your name, birth date, employment status, and how much you make per month. You can even get a loan if you have bankruptcy on your record. CashUSA even allows you to use the money for any reason and won’t ask about why you’re using it. Just remember that this company is a cash advance, not a hard credit check, so they will post to your credit report under an alternative payment method. This will hurt your credit score but the process itself may be worth it for those who really need the money.
#3. Bills Happen – Shop Online And Pay With Checking Account, Get Now Pay Later
- Quickly borrow up to $5,000
- Multiple offers from one form
- Apply no matter your credit rating
- Featured on CNN and Fox News
- Requires social security number and bank account to get loan
Billshappen.com is a company that provides short-term loans to people with bad credit who need money for any purpose. They offer high-risk loans up to $5,000 and require only your basic information along with the social security number and bank account you use to get your loan. The application process is quick and there are multiple loan offers made on one form, so it doesn’t take long at all. They also provide an alternative payment method that will not affect your credit report since they do not consider the cash advance— just be careful about using this option if you’re looking for something that can help build your credit score over time because it may hurt you in the long run because of this “alternate” payment method.
BillsHappen.com has partnered with over 550 lenders in the United States and you can get your loan in as little as 24 hours. If you’re in a bind and need a loan fast, then Bills Happen is a great option for you.
Find a Secure Buy Now, Pay Later Loan
Given that these marketplaces connect to a range of lenders, each loan has unique terms and conditions you should consider. Assess the interest rates, fees, and penalties associated with a loan before accepting it. Ensure the loan suits your needs.
Now have a look at the Best Buy Now and Pay Later Auto Loans for Bad Credit
Cars have gone from being a luxury to a necessity in our modern world. People need cars to get through sprawling town centers to get to work. Public transportation is helpful, but it might not get you where you need to go. You need a car to make a living.
Landing Tree found Americans took out 27 million auto loans in 2018, marking a record number. Given the never-ending need for cars and auto loans, there’s plenty of competition between providers. Lenders are now more willing to consider lending to people they wouldn’t have before.
As with our top personal loans, our list of auto loans for bad credit are marketplaces. These marketplaces take an initial application and send it to lend partners across a network. You could end up with several loans to choose from depending on your needs.
#1. Auto Credit Express – Overall Best Auto Loans for Bad Credit, Quick Auto Financing
- Specializes in bad credit loans
- In business since 199
- Wide network of partners
- Quick and easy pre-qualification
- Bad credit applicants must earn over $1,500 per month to qualify
Auto Credit Express is a company that offers auto loans for those with bad credit. They specialize in providing these loans and typically only want those with a very low credit rating because those with higher ratings can typically get better rates elsewhere. To circumvent this, they provide pre-qualification so you can see what the rates will be like before applying and applying to multiple lenders at once. This process is quick and easy for people who might not want to wait days, weeks, or even months to find out if they qualify for a loan. All that’s required of them is that their income must be over $1500 per month.
Overall, it’s an option worth considering if you can’t get a car financed elsewhere, and they offer a user-friendly service where you simply answer a few questions and get your loan in under an hour.
#2. CarLoan.com – Auto Lenders for Buy Now Pay Later Credit
- Free, no obligation applications
- Same-day approval
- Affordable application fees and repayments
- Specializes in offering auto loans for bad credit and bankruptcy
- Connects thousands of people to car loans each day
Car Loan is a company that specializes in providing bad credit loans to people who need them but can’t get them anywhere else because of their credit score— which makes sense because if you’re going to charge people interest on their loans then they need someone that’s going to be able to give them an interest rate they’ll be happy with.
If your income is too low it can be difficult to qualify for a loan, which is why they require you to earn at least $1500 per month before they’ll even consider lending to you. Their fees are very low, but their interest rates are higher than most other providers, so you need to be careful and make sure it’s worth it. They also require a cosigner to sign off on your loan and the person who wants the car must be employed full-time and has a bank account in his or her name.
#3. MyAutoLoan.com – BestBuy Financing for Car Loans & Auto Loans
- Find loans for new and used cars or refinancing
- Works with a nationwide network of lenders
- Accepts applicants with bad credit
- Get an offer in minutes
- Get an online loan certificate or check in under 24 hours
MyAutoLoan.com is a company that connects people to online loan certificates, personal loans, or refinancing. They can connect people to these opportunities because they have a nationwide network of lenders who offer different options for the car-buying public and MyAutoLoan.com expedites the process with quick approval and online loan certificates in less than 24 hours.
If you’re one of the many people who need a car but can’t get one because you don’t have enough credit, this is an option worth checking out— and if your credit score isn’t too bad then they’ll be happy to give you loans with personalized rates that work for your needs. Overall, it might erode some of what was established in the previous options, but it’s something worth keeping in mind because it provides an option for people who may not otherwise have one.
Get the Auto Loan with Bad Credit You Need
If you are having trouble finding finance because of bad credit, a bad credit auto loan could be what you need. These loans help you gain a better financial standing if you make timely repayments. FICO, the credit scoring agency, bases 10% of your total credit score on your current mixture of credit. It also shows lenders that you can handle different types of loans. Auto loans are the most common loan products, appearing in most people’s credit mix.
Next Up is the Best Buy Now and Pay Later Credit Cards for Bad Credit
With more people shopping online and using cards to pay monthly bills, there’s never been a greater need for credit cards for bad credit. Not only does a credit card allow you to pay your bills and go shopping more comfortably, but they are a great source of emergency money in a financial crisis.
A great card, such as the ones we’ll list below, also reflects well on your credit score. Major credit card providers report to credit reporting agencies. Use your card responsibly and you’re sure to see your credit score get a healthy boost.
#1. Surge Mastercard
- Anyone can apply, no matter their credit score
- Sign up to online statements for free access to your Vantage 3.0 score provided by TransUnion
- Initial credit limit of between $300 and $1,000, depending on available credit
- Reports to the three major credit bureaus once a month
- Find out if you pre-qualify without affecting your credit score
- Quick and easy application process with almost instant results
- Free online access to account 24/7
- You will require a checking account
Many people living in the United States struggle with bad credit. This can be caused by a variety of reasons, but usually, it is because you haven’t been able to maintain a steady and healthy credit score for an extended period. This can become especially difficult if you’re looking for loans because lenders often require not only your income but also your credit score before they’ll agree to lending to you. If you’re looking for a product that may help alleviate these problems, then Surge MasterCard might be the one that best fits what you need.
Surge MasterCard is an easy card that will allow anyone to gain access to buy now pay later credit. With the swipe of a card, you’ll be able to buy anything on the internet or in person, depending on how you prefer to buy things. They don’t require your income or any other elaborate information to determine whether you’re pre-approved for their services, which means it’s easy for anyone who qualifies for the card to gain access.
#2. Indigo Platinum Mastercard Credit Card
- Quick and easy pre-qualification process
- Can apply even with poor credit
- Online servicing available around the clock for no extra cost
- Unsecured credit card – no security deposit needed
- Account history is reported to the three major credit reporting bureaus
The Indigo Platinum card was created to help those with bad credit. This means that you can apply even if your credit is poor. It’s quick, easy, and free to pre-qualify online so you know what kind of rates are available without affecting your score. You’ll be able to get the details of all the products they offer and how to apply for one as well as your Vantage 3.0 score so you can see how it will affect your credit score.
#3. PayPal Prepaid Mastercard
- Fund your credit account with your PayPal account
- Earn cash back and get personalized offers for using the card
- Direct Deposit means you get money quicker than you would with a traditional check
- Can use the card anywhere Mastercard is accepted
- Access to Click PayPal Prepaid Mastercard for extra benefits and features, such as requesting a new card
The PayPal Prepaid MasterCard is a card that can be used anywhere PayPal is accepted. You can fund it with your PayPal account and get cash back and personalized offers for using the card. It has a direct deposit feature, which means you will get your payment as soon as it comes in. It also reports to the credit agencies, which can help rebuild or improve your credit score if you use it properly.
Find a Great Credit Card to Buy Now and Pay Later
No two credit cards are created equal. Each credit card company has its own fees, interest rates, and penalties on the cards. Cards also have varying fees depending on your credit history and income information.
Before getting a new credit card for your wallet, ensure you fully understand how much you’ll need to pay for the card – and how those payments affect your monthly budget.
Lastly, have a look at the Best Buy Now and Pay Later Retail Stores
Most people have a favorite brand or store they keep going back to. Whether it’s a clothing store, car brand, or kitchen appliance, having a store or manufacturer you trust gives you peace of mind when making a purchase. You know you’re getting a product or service you can rely on.
This brand loyalty isn’t bad, but it sometimes comes with a cost. It gets expensive to focus on one brand if you must replace broken items or find new furniture for a building. Therefore, some retailers have branded credit cards. These credit accounts let you make a purchase whenever you want but pay the bill back over time.
Keep in mind that these credit accounts usually only apply to the retailer in question. You should only take a store credit account with a store that you’re a regular customer with.
#1. Fingerhut Credit Account
- Easy application process with a decision in seconds
- Improve your credit history as Fingerhut reports to the credit bureaus
- Use the credit account to purchase major brands like DeWalt, KitchenAid, and Samsung
- Not an access card
If you like to shop at Fingerhut but don’t want to pay for everything all at once, then the Fingerhut Credit Account is for you. This is one of the easiest store cards to get approved for. This ease and simplicity are why we consider it the best of the store branded credit cards.
#2. Montgomery Ward
- Low monthly payments – as low as $10
- Use the card responsibly for a better credit line
- No need to worry about third-party charges and fees
- Instant access upon application approval
Aaron Montgomery Ward founded the Montgomery Ward brand in 1872 as a Chicago-based mail-order dry goods business. The company expanded over decades and entered the brick-and-mortar world with storefronts popping up across the nation. These days, Montgomery Ward is the third-largest department store chain in the country.
Montgomery Ward has great merchandise at discounted rates online. The Ward’s Credit Card makes buying things from the store easy as you can pay the cost back over time. Since the credit comes directly from the store itself rather than a lending bank you won’t need to worry about hidden third-party charges and fees.
Montgomery Ward boasts that cardholders have low monthly payments as small as $10 a month, making any purchase much more affordable and easier to manage. You can apply for your card directly through the Montgomery Ward website.
- Up to $2,500 interest-free credit
- Get approved without a credit check
- Instant access to credit upon approval
- Online application only takes a few minutes
Zebit obtains name-brand products at wholesale prices, passing the saving on to consumers to give everyone access to the biggest and best names. A ZebitLine account takes things even further by letting you purchase goods online without paying interest on purchases up to $2,500. This perk alone will save you hundreds of dollars in interest and fees compared to standard credit cards and personal loans.
Zebit determines your eligibility through your income and employment information. This means you won’t have to submit to a credit check to get your account. You’ll have instant access to the credit account if your request is approved.
One downside of Zebit is that the store doesn’t report to credit bureaus. Even if you make timely payments, it won’t reflect on your credit score. This is perhaps the only downfall of the program given that you can buy anything you want without paying the same high interest rates that come with other bad credit options.
Retail credit lines let you buy just about anything, often at a discount price, without having to go to the register and pay in full. Some retail credit accounts have higher interest rates, so ensure you go through the small print and understand what you’re getting yourself into before applying.
What is “Buy Now, Pay Later”?
Buy now, pay later is a thriving industry that only gets bigger each year. There are plenty of different plans under this umbrella. The most common and popular is a traditional credit card. A credit card lets you purchase something at a store that accepts the card in question.
The card allows you to complete the purchase and pay the total cost back over time through monthly installments. Once you pay off some of the debt, you can use that part of your credit account again to make a new purchase. Banks refer to this as a revolving line of credit.
Some stores have single-use credit cards. As the name implies, this debit or credit card lets you make a single purchase and pay it back in installments, but you can’t buy anything else with it. These cards are usually reserved for specialist stores such as appliance and furniture stores. These accounts are effectively a one-time loan you pay back over time.
While like loans, they are different in that you don’t necessarily have to use the entire credit amount when buying something. If you borrow $2,000 as a loan, for example, you get exactly that much (minus any origination fees and other charges) upon successful application. You must pay back the full amount, plus interest, by the end of the loan term.
On the other hand, a retailer could approve a one-time use credit line without requiring you to use the full amount of money in the account. You can get $2,000 worth of credit but only spend $800. In this case, you’d only have to pay back the portion of the credit you used ($800) rather than the total amount ($2,000).
Which kind of buy now, pay later credit you can get depends on what you plan to use the money for and how much debt you can afford to take on. It’s rare you’ll find a line of credit without interest payments, and the ones that don’t have interest have stringent eligibility requirements. Make sure you consider the cost of paying interest when budgeting around loan repayments.
Does Buy Now and Pay Later Affect Credit Score?
Several factors go into determining your credit score. Your current debt accounts for roughly a third of it. Your overall debt increases every time you take out a loan. Any debt increase could cause a credit score decrease. Any bump you get will fade over time as you make timely payments and pay down your outstanding balance.
On the other hand, applying for a new loan could improve your credit mix. Lenders like to see you can properly manage different loan types, so having more variety could be good for you.
Other financial products, such as revolving credit cards, offer an instant boost to your credit score. Obtaining a new credit line improves overall credit utilization. Lenders calculate your credit utilization by taking your total credit limit and dividing it by your current debt balance.
For example, owing $500 on a $2,000 credit card works out to 25% utilization. Keep your credit utilization low to improve your credit score.
Adding a new credit card means you have more available credit. Avoid running up too many charges on the new card and you’ll automatically reduce your credit utilization and improve your credit score.
This doesn’t mean one form of credit is better than another. Any line of credit can improve your credit score if used properly. Make timely payments and pay down your balance and you’ll always be rewarded for it. Lenders make their money by lending it to other people. They don’t want to punish you for taking out a loan in the first place.
Use your credit card responsibly to improve your future credit application success.
What is No-Credit-Check Financing?
Most lines of credit are backed by banks with the bank funding the transaction. When you buy something with your credit card, the issuing bank sends the money for the purchase to the service provider. Essentially, the bank pays the bill for you and you pay the bank back with interest.
Given that a bank is lending you money, they want to know you can pay them back. You’ll typically have to pass a credit check to have a loan application approved. However, not every retailer backs their credit cards using banks. For example, Zebit pays for your purchases instead of asking a bank to do it. These kinds of accounts have you pay back the store in question rather than the bank.
Given that Zebit puts up the money, the store offers no-credit-check financing with 0% interest for customers. You’ll need to show proof of income to get the card but won’t need a credit check. Other service providers have similar credit lines that don’t rely on banks. Services such as mechanics and plumbers might let you pay for their services in instalments.
As you aren’t dealing with a bank in those cases, merchants can use different means to determine if they should give you credit or not. This means you might not need to go through a credit check to get final approval.
Instead of asking for a credit check, merchants ask for proof of employment and income. This includes tax returns, pay stubs, or other evidence you are financially secure enough to repay the debt on time.
Having the option to avoid a credit check is great for people with bad credit. Lenders typically charge people with bad credit higher interest rates to compensate for the risk of lending to them. They also might request you pay a deposit to get the loan. Taking out a no-credit-check loan means you get to pay the same rates and fees as everyone else.
The downside of avoiding a credit check is that these loans often have no effect on your credit score. When you borrow from a traditional lender or use a credit card, the lender reports back to the credit bureau. This information affects your credit score. This generally doesn’t happen with no-credit-check loans.
Frequently Asked Questions about Buy Now Pay Later Loans
- How do I buy now, pay later work?
Buy now, pay later (BNPL) works by letting you buy something without paying the full amount upfront. Rather, you can delay the payment or spread it over a period of between 30 days and 36 months. Payments are made according to your financial situation, so you have access to expensive essentials even if you don’t have the money.
Unlike other credit options, some providers who offer BNPL systems don’t require you to put up interest on the money you owe. However, you might be asked to pay the first instalment as a deposit. There are also defaulting fees and interest applied if you fail to make a repayment.
- Is buy now, pay later worth it?
If you continue making timely repayments, then opting in to BNPL is a great way to spread the cost without using a credit card or generating interest. However, you run the risk of damaging your credit score, falling victim to defaulting fees, and having more trouble borrowing money in the future.
- Can I repay the money early?
The answer to this question depends on who you work with. However, most companies that allow you to pay later don’t charge extra fees or an Early Repayment Charge if you pay the money back earlier than agreed. The company cares more about getting its money than anything else. You should pay off your debt as soon as possible whenever you can without worrying about paying fees or other costs.
- Why did the company reject my application?
There are several potential reasons your credit application was refused. It can be confusing if you aren’t sure as to why the application was rejected. Here are some of the most common reasons applications don’t make it.
- Mistakes on the application form
- Different billing and shipping addresses
- Being unable to afford repayments
- Being unable to verify your personal information and prove your identity
- Having a known history of missed payments
- Having a poor credit score
If you have a history of missing credit payments, have a lackluster or poor credit report but want to borrow money, then you should consider taking action to repair your credit before applying. An alternative option is contacting the credit provider to ask them directly why they rejected the application. It might be a problem you can fix to gain approval.
- Do I have to have a credit check?
You should expect the credit supplier to run a soft or hard credit check when you sign up for a credit card. This check gives the provider an overview of your financial past and present. Credit checks give lenders an insight into your ability to afford repayments for how much you want to borrow and how well you have used credit in the past.
Should you pass the credit check the lender will give you a credit limit according to your affordability. Therefore, credit companies always state that the available credit is subject to status. Some people qualify for more, some for less, and some for none.
- Does using buy now, pay later affect my credit score?
You shouldn’t expect signing up to buy now, pay later to negatively affect your credit score if you keep making timely repayments according to the agreement. If anything, such a credit package could improve your credit score. Of course, failing to make payments causes fees and other problems that negatively affect your credit – and your ability to borrow money again in the future.
- What happens if I can’t afford the repayments?
The payments are taken from the card you signed up with when applying for the credit product. If providers try to take the money from your account and are unable to do so because you don’t have the money, they generally try again after a day or two. They offer you a little leeway. If they still can’t take the payment from you, then you run the risk of defaulting fees and having the missed payments reported on your credit report.
If you think you won’t be able to make a payment in advance, such as because you lose your job or have been affected by a crisis such as the pandemic, then you should talk to your provider. Contact their customer service department and talk to them to work out a deal. You might qualify for a payment freeze or interest holiday where you don’t have to make payments, or your balance doesn’t generate interest. Not every lender offers these special terms, but it’s worth asking just in case. At the very least, it’s good courtesy to discuss problems with your provider so they know to expect a missed payment. They are more likely to go easy on you if they know in advance.
Get the Things You Want with Fair and Reasonable Payments
Buy now and pay later financing gives you more purchasing power while also boosting your credit score. Keep in mind that no two loans are created equal. Depending on the loan type and your financial history, you might face higher interest rates and fees. Maybe you’ll even avoid fees entirely. Therefore, you should do your due diligence and research different options before applying for a loan or credit card. The more you know about a loan or credit agreement, the more informed your decision will be. Ask yourself if you can really afford to take on the debt before signing anything.