Afterpay Personal Loans Reviews

If you find yourself needing to break up a large purchase to fit your budget, BNPL apps are a helpful option — as long as you can control your spending and not get accustomed to overusing them.

It can be easy to trap yourself in a debt cycle with an app like Afterpay. That is, the more purchases you make with Afterpay, the more installment payments you’ll have outstanding. If you can’t afford to pay these installments off, this can have a negative impact on your financial health. If this worries you, you should consider a personal loan lender with low minimum borrowing requirements and only take out a loan if you absolutely need it.

Afterpay doesn’t offer traditional personal loans. Instead, it offers an alternative form of funding. All Afterpay customers, regardless of credit score, start with a maximum spending limit of $600. This amount will increase once you prove you are low-risk to Afterpay by making regular, on-time payments.

Here are the two different ways Afterpay can help you finance your purchases:

If using Afterpay’s four-installment plan, you won’t be charged any interest by Afterpay. However, the bank account you connect to Afterpay may charge interest and fees separately.

Those who opt for six-month or 12-month monthly payments can expect an annual percentage rate (APR) of 0% to 35.99% as of publishing, depending on eligibility.

There are no fees charged by Afterpay for using an Afterpay loan as long as you don’t miss your payments. If you do, you’ll need to pay 25% of the purchase price of the item you’re buying or $8, whichever is less.

To help you avoid late fees, Afterpay sends regular reminders once your payment due date is approaching. It also sends you alerts if a payment fails, helping you to address the problem quickly.

Before you can use Afterpay, you’ll need to make sure you qualify. Unlike many personal loan lenders, Afterpay doesn’t perform a credit check. The only requirements you must meet are:

• Shop at a retailer that accepts Afterpay. Afterpay works with thousands of retailers online and in-store. In order to qualify to use Afterpay for a purchase, you’ll need to shop at one of these affiliated shops.
• Be at least 18 years of age. You must be a legal adult who lives in the U.S. to take out a loan through Afterpay. (Or 19 years old if you live in Alabama or are a ward of the state in Nebraska.)
• Be an authorized user with your bank. You’ll need to have a U.S.-issued credit card, debit card or checking account that you are authorized to use to connect to Afterpay.
• Be contactable. You’ll need to have a valid email address, mobile phone number and delivery address in the U.S.
• Download the Afterpay app. The easiest way to use Afterpay is via its mobile app. If you have a smartphone that allows the app, you’ll have an easier time at checkout.

Unlike a traditional personal loan, you’ll apply for an Afterpay loan at the point of purchase. The best way to do this is to shop directly through Afterpay’s online shopping portal, which lists all retailers that allow Afterpay. Once you head to checkout, follow these steps:

1. Select Afterpay: If Afterpay is an option, you’ll be asked at checkout if you’d like to cover your purchase with Afterpay.
2. Log in to Afterpay: If you already have an Afterpay account, you can log in now. If not, you’ll create one by following the “Sign up” button and Afterpay’s prompts, which will ask for a few personal and financial details.
3. Submit your order: Once you have logged into your Afterpay account, you’ll need to continue the checkout process like normal, with Afterpay still selected. Your order will ship just like you paid in full, and you’ll repay the loan over the next eight weeks.

Although Afterpay isn’t a traditional personal loan lender, its buy now, pay later model works similarly to that of a personal loan. Here’s how Afterpay compares to Upgrade:

Although Afterpay has only been available in the U.S. since 2018, it has rapidly grown in popularity. As of 2020, the company reported nearly 9 million U.S. customers had joined the platform. In 2022, Afterpay was acquired for $29 billion by Block, Inc., an American technology company led by Twitter founder Jack Dorsey, which also owns the financial apps Square and Cash.

Afterpay meets international standards for customer security and compliance, including being PCI-DSS Level 1 certified and ISO/IEC 27001 certified.