Buy-now, pay-later apps can let you purchase items today and pay for them in installments.
These apps can be convenient if you don’t have enough money to pay for a purchase upfront. Just make sure to check whether you’ll be charged any interest or fees in exchange for that convenience — and if so, how much. For a larger purchase, a personal loan or low-interest credit card could be a less-costly route.
If you think a buy-now, pay-later app is the best option for you, check out our picks for the top five and how they work.
Buy-now, pay-later apps can let you purchase items today and pay for them in installments. These apps can be convenient if you don’t have enough money to pay for a purchase upfront. If you think a buy-now, pay-later app is the best option for you, check out our picks for the top five and how they work.
- Best for multiple repayment options: Klarna
- Best for long repayment terms: Affirm
- Best for no-interest payments: Cash App Afterpay
- Best for payment flexibility: Sezzle
- Best for user experience: Zip
- What are buy-now, pay-later loans?
- When should you use a buy-now, pay-later app?
- Alternatives to buy-now, pay-later loans
- Which buy-now, pay-later app is better for you?
Best for multiple repayment options: Klarna
Why Klarna stands out: The Klarna app offers several repayment options: Pay in four interest-free installments, pay in full within 30 days (also with no interest) or finance larger purchases with interest. You can also pay in full with a stored credit or debit card on the Klarna platform.
Pros
- Shop with Klarna anywhere that accepts credit or debit cards
- Offered as a payment method on specific retailer websites
- Free rewards club and exclusive deals from select brands
Cons
- Charges late fees
- Some customers may be required to pay a higher initial payment
Read our full Klarna review to learn more.
Best for long repayment terms: Affirm
Why Affirm stands out: In addition to paying in four installments, Affirm offers longer loan terms on large purchase amounts. APRs range from 0% to 36%.
Pros
- No fees, including service or late fees
- Available at checkout online or through a virtual card for places that don’t offer Affirm at checkout
- Considers things like your account and payment history with Affirm along with credit when reviewing your loan application
Cons
- May require a down payment if you don’t qualify for a loan that covers the full cost of your purchase
Read reviews of Affirm review to learn more.
Best for no-interest payments: Cash App Afterpay
Why Cash App Afterpay stands out: Cash App Afterpay offers the ability to pay for your purchase in four installments with no interest. Payments are due every two weeks.
Pros
- Able to use as a payment option online or with a virtual card in stores
- No credit check
- No fees as long as you pay on time
Cons
- Late fees can be up to 25% of your loan amount
- No credit reporting
- Purchase can be declined if the retailer has specific spending limits — even if your estimated spending limit is higher
Read our full Cash App Afterpay review for more info.
Best for payment flexibility: Sezzle
Why Sezzle stands out: Like Cash App Afterpay, Affirm and Klarna, Sezzle lets you pay over four interest-free installments. But with Sezzle, you can also reschedule your payments, delaying payment for up to two weeks if necessary. While your first reschedule is free, take note that any additional reschedules come with a fee.
Pros
- Option to have your payment history reported to the credit bureaus
- Soft credit inquiries
- Rewards program can be used toward the final installment payment
Cons
- Likely need to pay 25% of your purchase upfront — but it counts as your first installment payment
Read our full Sezzle review to learn more.
Best for user experience: Zip
Why Zip stands out: Zip lets you buy now and pay later in four payments. But it makes paying back your loan on time easier by automatically charging your linked debit or credit card when each installment is due. Just remember that if the payments are charged to a credit card, you’ll need to pay that credit card balance in full to avoid any interest charges.
Pros
- Use anywhere Visa is accepted
- Chrome and Microsoft Edge browser extension to help you calculate your split payments, generate a virtual VISA card and autofill payment info at checkout
- Soft credit check
Cons
- Installment fees are possible
Read our Zip review to learn more.
What are buy-now, pay-later loans?
Buy-now, pay-later loans allow you to make a purchase and pay for it in installments, generally over a relatively quick time frame. If you’re considering this type of loan, make sure to check whether you’ll be charged any interest or fees in exchange for that convenience — and if so, how much. You’ll typically be expected to make a few installment payments every two weeks until it’s paid off. Some buy-now, pay-later apps don’t charge interest if you pay off your loan on time.
Buy-now, pay-later apps can be a good resource if you’re in a pinch and know you’ll be able to pay off the loan on time. For a larger purchase, a personal loan or low-interest credit card could be a less-costly route.
When should you use a buy-now, pay-later app?
If you’re unsure when you should use a buy-now, pay-later app, consider the pros and cons.
Pros
- May not charge interest if paid on time
- Potential for no hard credit check
- Typically, fast approval
Cons
- May encourage overspending
- May not help build credit
- Possible high fees
- May hurt your credit if you miss a payment
Alternatives to buy-now, pay-later loans
Buy-now, pay-later loans aren’t the only option if you need help paying for something outright.
- Personal loans — Personal loans can come in small amounts and will result in consistent monthly payments that don’t fluctuate.
- Credit cards — Some credit cards offer introductory low or no purchase APR. This means that as long as you make the minimum payments and pay off your balance by the time the introductory period ends, you may not accrue any interest on your purchases.
Which buy-now, pay-later app is better for you?
Which buy-now, pay-later app is best for you depends on your specific situation and needs. No app is one-size-fits-all. You’ll want to consider things like fees and interest charged. You’ll also want to determine if the app would be able to meet your needs — some apps have a small lending limit or may have shorter repayment terms than others. If you have poor credit, checking approval requirements may help you find an option that works for you.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.