The “Buy Now, Pay Later” phenomenon is here to stay. This payment option is also known as installment payments. Whichever name you opt for, this is basically a payment option that allows you to make a purchase, paying only a portion of the full amount upfront. You typically select how many payments you wish to make, which determines the amount you pay each month, and you get to take your item home or get it shipped to you that day.
Installment payment plans are well known for having traps built in to catch a person when they aren’t paying attention, which can lead them into real financial trouble. Late payments, service fee’s and additional interest are just some of the red flags around the Buy Now Pay Later industry.
These practices have left a nasty residue in many shoppers’ wallets, which is why so many still think that paying everything upfront is the best and safest option available. Times are changing, however, and we are here to let you know that this whole “killed by fine print” world is no longer the only option available. Don’t get me wrong — it still exists, so be careful to note who is offering the installment payment option. But, we are happy to say there are real, consumer-empowering options available.
A Payment Plan That Puts Consumers First
Splitit launched its patented payment solution for installment payments back in 2016 with an unwavering commitment to responsible credit. The technology behind Splitit puts the control back in YOUR hands, helping you pay for your purchases in monthly installments using your existing credit card.
What does this mean? Having a credit card means you have an existing credit limit that is often left untapped. Perhaps you have heard the term purchasing power. It is “the capacity of an individual customer or a specific market to buy certain quantities of goods and services.”
So, when you go to buy a new TV or upgrade your mattress (or finally pop the question to your special someone), with Splitit your purchasing power is not limited to how much cash you have available immediately. You don’t have to pay for it all upfront, damaging your cash flow for the next several months to afford it, AND you don’t have to go to the bank to apply for more credit, taking a hit to your credit score and dealing with interest and fees if you aren’t careful.
How to Pay Using Splitit
Using Splitit’s installment payments is as simple as 1-2-3. You choose Splitit at checkout, select the amount of installments that best fit your budget, and enter your existing credit card information to pay. That’s it. There are no application forms to fill out or credit checks to run. Your first monthly installment is paid immediately at the time of purchase, and the rest is placed on hold. Each subsequent payment is automatically withdrawn directly from your credit card, reducing the hold on your card by each payment amount until it is paid off entirely. You can check the status of your payments anytime you like online.
It’s a no-brainer for you as a shopper and there are some surprising benefits. Since you are using your credit card, you are continuing to build your credit score and earn your benefits (points, rewards, etc.) when you pay using Splitit. Splitit guarantees your payment and does not charge any interest or fees. So as long as you pay your credit card bill each month, you only pay what the item costs, simply broken into smaller amounts that fit your budget each month, instead of paying it all at once.
Spreading the Word
I know, I know…things that are so easy and show only benefits to us as consumers are hard to trust. You don’t have to trust me on this, though. You can read what actual Splitit shoppers say here.
When you see Splitit being offered, know you are in safe hands, and you can optimize your own cash flow easily without EVER having to pay fees or interest.
If you don’t see it as an option, ask your retailer to offer Splitit. As a consumer, you have the power to drive the change you want and need. It’s no different when it comes to the way you want to pay!