Written by: Adam West
Edited by: Lillian Guevara-Castro
Reviewed by: Ashley Fricker
Emergencies happen — cars sputter, pipes leak, appliances break — and fixing these unpleasant surprises rarely comes cheap. If you have a big expense that’s due now, but don’t have the money to replace or service an item, you may want to look at options for buy now, pay later.
Bad credit certainly won’t improve your chances of getting approved for a loan or credit card when you’re in one of these tight spots, but it’s not a deal breaker either.
We’ve researched the various buy now, pay later options available and categorized our list of the best lenders and retailers so you can find one that specializes in the type of financing you need.
Cash Loans | Credit Cards | Stores | BNPL Apps | FAQs
“Buy Now, Pay Later” Loans for Bad Credit
Personal loans provide more flexibility than any other kind of loan. That’s because these loans won’t place restrictions on how you use the money you borrow. Once the lender deposits the money into your bank account, you choose how to spend it.
Our top bad credit lenders below are loan marketplaces, meaning you won’t borrow money from that company, but rather from one of the many partner lenders within its marketplace.
Most marketplaces require you to fill out one preliminary loan application, which the company then shops to its partner lenders. Depending on your loan needs and credit history, you could receive multiple loan offers to choose from, or just the best match. Many approved loans offer payouts to a bank account within 24 hours.
1. MoneyMutual
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
2. Avant
- Personal loans of $2,000 to $35,000
- Compare rates in 2 minutes without affecting your credit
- Best for low origination fees for bad credit
- 550 minimum credit score required
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $2,000 to $35,000 | 9.95% - 35.99% | 12 to 60 Months | See representative example |
3. Upstart
- Personal loans starting at $1,000
- Find loans you prequalify for, complete your application, and close your loan
- Loans for 300+ FICO Scores
- Checking rates doesn't impact your credit score
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $1,000 to $50,000 | 6.40% - 35.99% | 3 or 5 Years | See representative example |
Since each personal loan marketplace partners with several lenders, each loan will come with varying terms and conditions. Before you accept a loan, study the fees, interest rates, and potential penalties associated with every offer so you can get the best loan terms for your needs.
“Buy Now, Pay Later” Credit Cards for Bad Credit
As Americans continue to shop online in large numbers, and many more choose to pay their monthly bills using plastic, the need for a good buy now, pay later credit card only grows.
Credit cards not only allow you to shop online and pay your bills, but they can offer emergency funding when you’re in a financial pinch. A good credit card, like our top choices listed below, will also report your payment history to the three major credit reporting bureaus. This means you can use the card to improve your credit score with responsible usage.
- $400 credit limit doubles to $800! (Simply make your first 6 monthly minimum payments on time)
- All credit types welcome to apply
- Monthly reporting to the three major credit bureaus
- Initial Credit Limit of $400.00 (Subject to available credit)
- Fast and easy application process; results in seconds
- Use your card at locations everywhere Mastercard® is accepted
- Access to your Vantage 3.0 score from Experian (When you sign up for e-statements)
- Checking Account Required
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 10 minutes | 29.99% | Yes | 7.5/10 |
- Earn 3% Cash Back Rewards* on Gas, Groceries and Utility Bill Payments
- Earn 1% Cash Back Rewards* on all other eligible purchases
- Up to $1,000 credit limit subject to credit approval
- Prequalify** without affecting your credit score
- No security deposit
- Free access to your VantageScore 4.0 score from TransUnion®†
*See Program Terms for important information about the cash back rewards program.
** Prequalify means that you authorize us to make a soft inquiry (that will not affect your credit) to create an offer. If you accept an offer a hard inquiry will be made. Final approval is not guaranteed if you do not meet all applicable criteria (including adequate proof of ability to repay). Income verification through access to your bank account information may be required.
† Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 7 minutes | 29.99% or 36% Fixed | Yes | 8.0/10 |
6. Revvi Card
- Earn 1% cash back rewards^^ on payments made to your Revvi Credit Card
- Perfect credit not required
- $300 credit limit (subject to available credit)
- Checking account required
- Opportunity to request credit limit increase after twelve months, fee applies
- *See Rates, Fees, Costs & Limitations for complete offer details
- ^^See Revvi Rewards Programs Terms & Conditions for details
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 8 minutes | 35.99%* | Yes | 8.0/10 |
No two credit cards are the same. Each card issuer sets different interest rates, fees, and penalties for cardholders. Many cards have varying fees that depend on the cardholder’s credit history and verifiable income information.
Before you add a new credit card to your wallet, make sure you understand exactly how much you’ll have to pay for the credit and how it will affect your monthly budget.
“Buy Now, Pay Later” Retail Stores
Most everyone has a favorite shop or brand they remain loyal to over the years. Whether it’s a type of car, a clothing store, or a kitchen appliance, having a go-to manufacturer gives you peace of mind and some dependability when making a purchase.
But staying loyal can sometimes come with a price. If you need to replace lost or broken items or furnish a new home or business, sticking to one brand can get expensive. That’s why many retailers offer their own branded credit cards or credit accounts that allow you to make the purchases you need and pay your bill over time.
These accounts only work at the specified retailer, so make sure you regularly shop at the business before adding an account to your credit profile.
- Easy application! Get a credit decision in seconds.
- Build your credit history – Fingerhut reports to all 3 major credit bureaus
- Use your line of credit to shop thousands of items from great brands like Samsung, KitchenAid, and DeWalt
- Not an access card
- Click here for official site, terms, and details.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 5 Minutes | See issuer website | Yes | 9.0/10 |
The Fingerhut Credit Account is a great option for anyone with poor credit who needs a few items they can buy now and pay for later. This card is one of the easiest cards to be approved for, making it our top buy now, pay later credit line.
8. Zebit
Zebit sources name-brand goods at wholesale prices and passes the savings onto its customers. You can purchase from the online retailer and pay no interest on purchases of $1,500 or less. That perk alone can save you hundreds of dollars in fees compared to personal loans and credit cards.
Zebit uses your income and employment information to determine credit eligibility, which means you won’t have to undergo a credit check for approval. Once approved, you can instantly access your credit line to make purchases.
- Get up to $1,500 in credit to shop Zebit!
- No hidden fees and no credit check
- Buy now and pay over time on over 90,000 products
Zebit does not report your information to the credit bureaus, so your on-time payments won’t improve your credit score. That’s one of the only downfalls of this program that allows you to make purchases without paying the stiff interest rates that many consumers who have bad credit often face.
9. Montgomery Ward
Montgomery Ward’s founder, Aaron Montgomery Ward, started the company in 1872 as a mail-order dry goods business in Chicago. Over the next several decades, the company expanded into brick-and-mortar retail locations and became the third-largest department store chain in America.
Today, Montgomery Ward offers quality merchandise at deep discounts online. The Ward’s Credit Account makes it easy to purchase the items you need and pay for them over time. And since your credit comes directly from Ward’s — and not from a lending bank — you won’t find third-party fees or other hidden charges on your monthly bill.
- Monthly payments as low as $10
- Increase your credit line with responsible use
- Instant access to your credit line upon approval
Ward’s boasts that its revolving line of credit offers payments as low as $10 a month, which makes your purchases affordable and easy to manage. You can apply for an account through the link above or during checkout while making an online purchase at Wards.com.
“Buy Now, Pay Later” App
Buy Now Pay Later apps have taken the eCommerce sector by storm, allowing consumers to finance online purchases without credit, and sometimes without interest. These services are quickly gaining momentum and are available on thousands of eCommerce websites. Some even allow you to request a virtual card so you can use the service for any product you wish to buy.
Most BNPL services perform a soft credit check to determine your eligibility for financing, and you can expect an instant approval decision. This is not an exhaustive list of BNPL apps — as the industry grows, so, too, do the number of providers.
10. Affirm
Affirm offers two ways to finance purchases. The first breaks your total amount into four interest-free payments that you repay every two weeks. The second is generally for big-ticket items and allows repayment over several months, but you’ll be charged interest.
You can see whether you prequalify for financing on its website, and you can request a virtual card in the Affirm app if you don’t see Affirm listed as a payment option during checkout.
11. PayPal Pay In 4
This BNPL service can only be used with retailers that already partner with PayPal. Simply choose PayPal during checkout and select Pay Later before choosing to pay in four installments.
A soft credit check will be performed to determine whether you qualify. Payments are automatically deducted from your PayPal account every two weeks.
12. Afterpay
Afterpay is a buy now, pay later app that differentiates itself from the above two options in that it can also be used in stores. Payments are split over six weeks, and you won’t be charged interest for the convenience.
You can choose Afterpay during checkout online if it’s available, or you can set up the Afterpay Card in the app, which can then be added to a digital wallet for use in stores.
What is Buy Now Pay Later?
The buy now, pay later industry continues to get bigger, particularly post-pandemic. But there are different types of buy now, pay later plans. The most popular is a traditional credit card, which allows you to make purchases with any retailer or service provider that accepts the card.
The card lets you complete your purchase and pay off the total cost over time in monthly installments. Once you pay off part of your debt, you can then reuse that part of your credit line again. Banks refer to this as a revolving credit line.
Some merchants extend single-use credit that you can use to make a one-time purchase. But once you pay the credit off, you cannot use it again. You can often find this type of credit at specialty stores, such as furniture or appliance dealers. They’re essentially a one-time loan you pay off in monthly installments.
This type of credit differs slightly from a traditional loan because you don’t always have to use your entire approved credit amount to make a purchase.
For example, if you take out a loan for $2,000, you receive that exact amount (minus any origination fees or other charges) when the loan closes. You must then pay back however much you borrow, plus interest charges.
With one-time-use credit lines, a retailer may approve you for a certain amount of credit, but you aren’t required to use it all. You can receive a $2,000 credit line but use only $800 to buy a couch. In that case, you’re only required to pay back the portion of the credit that you use.
The type of buy now, pay later credit you’ll need will depend on your desired use for the credit and how much debt you can realistically take on. Few lines of credit come with no interest charges (and the ones that do usually require good credit to qualify), so make sure you factor in those costs when determining if you can afford a buy now, pay later loan.
Does Buy Now, Pay Later Affect Your Credit Score?
Your current debt load accounts for nearly a third of your credit score. When you take out a loan, your overall debt increases, which could lessen your credit score. Any decrease you see will disappear over time as you make on-time payments and pay down your total balance.
On the other hand, a new loan can increase your credit mix. Lenders like to see that you can responsibly manage multiple loan types, so this could work in your favor.
Other types of loans — mainly revolving credit cards — can give an instant boost to your credit score. That’s because adding a new credit line improves your credit utilization. Lenders calculate your credit utilization by dividing your current credit card balance by your overall credit limit.
For example, a credit card with a $2,000 limit and a $500 balance has a 25% utilization rate. Your credit score improves when you keep this number low.
So, when you add a new credit card, you’re expanding the amount of available credit at your disposal. As long as you don’t run up several charges on your new card, you will lower your utilization and improve your credit score.
That’s not to say that one form of credit is better than others. Any credit line can improve your score when you make on-time payments and reduce your balance. Lenders make money by lending money, so they don’t want to punish you for taking out loans.
You’ll improve your chances of future credit approval when you use your credit responsibly.
What is No-Credit-Check Financing?
Most credit lines rely on banks to fund your transactions. When you use a credit card to make a purchase, the card’s issuing bank sends the money to cover your purchase to the retailer or service provider. The bank is essentially loaning you the money, which you agree to pay off — often with interest.
Since a bank loans you the money, it wants to make sure you can repay the loan. That’s why you typically must pass a credit check to get approved for a loan.
Not all merchants use banks to fund their credit lines. Some retailers, such as Zebit, simply loan you the money themselves. So, when you pay your bill, you aren’t paying the bank, but rather the actual store.
Zebit provides no-credit-check financing with 0% interest. Applicants must show proof of income for approval.
Many service providers have similar bank-free credit lines. Your plumber, mechanic, or handyman may allow you to pay for their services over time.
Since you aren’t dealing with banks in these cases, merchants can use their own means to decide whether to extend you credit. That often means you won’t have to pass a credit check for approval.
The merchant may want to see verifiable employment and income information. This could be pay stubs, tax returns, or another form of proof that you can repay the debt.
This can greatly work in your favor if you have bad credit. Quite often, lenders charge consumers with imperfect credit higher interest rates or require an upfront deposit to secure the loan. If you’re approved for no-credit-check financing, you’ll often pay the same fees and charges as everyone else.
The only downfall for this financing option is that it typically won’t help your credit score. When you make your monthly payment on a traditional loan or credit card, the lender reports your behavior (both good and bad) to at least one major credit bureau, which affects your credit reports. This doesn’t happen with no-credit-check financing.
Obtain a Manageable Payment Plan for Your Favorite Items
Buy now, pay later financing can help increase your purchasing power and improve your credit score at the same time if you choose a loan or credit card. But not every loan offer is the same.
Depending on your credit history and the type of loan you accept, you may have to pay higher fees and interest rates — or maybe no fees at all. That’s why it’s so important to study the best buy now, pay later options for bad credit before signing on the dotted line and accepting a loan.
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