If you are thinking about making a big purchase and don’t have enough cash to purchase it, then the buy now pay later finance plans would be great for you. You do not even have to worry about making payments through installments for a year or longer.
You can find great finance plans which offer you interest free periods and 90 days programs which make a lot of sense.
Understanding these finance plans
If you are thinking about an electronic item or any home appliance then you would certainly come across various buy now and pay later plans. Though they sound great, there are a certain things that you should know about them. If you do not choose the plan correctly, you might end up paying a huge amount towards the finance charges. You will be given a short credit application when you go for these plans which you need to fill up and submit. If the application is approved, the item would be delivered to you and you will have to make the payments to the lender and not to the store.
Things to take consider
There are a certain plans where you would be given an interest free period. But once that period is up, the interest rates will shoot up and you will be accumulating a huge interest rate with each passing day. If you do not make the payment in full before the end of the interest free period, you will be paying very high charges. These plans are not great if you are not certain that you will be able to pay off the full amount within the interest free period. You should only choose these if you are very disciplined with your finance and you can pay it off in full. If you can achieve that, these plans would be great for you.
Buy now pay later with no credit check
If you have a bad credit history, then there might be a few problems in finding a buy now and pay later plan since most lenders would want to conduct a credit check on the applicants before agreeing to offer funds. The lenders would not want to take unnecessary risk by offering funds to someone who has been irregular with their payments earlier and so they conduct the credit check.
However, you might find a few exclusive store catalogues that cater to those with bad credit and you might find a few lenders who would be willing to extend you the credit with no credit check. However, the options that you will have will definitely be limited and you will certainly be paying a higher rate of interest on these loans. You will have to be careful once you go for the buy now pay later finance and ensure that you are regular with your payments.