Not sure about the others, but Klarna allows you to setup automatic payments with a credit card. I use a cash back rewards card for those payments, which I always pay off, so I’m getting the short no interest float and rewards at the same time.
As a kid that grew up in the early 80's, I remember my mom putting stuff for Christmas and birthdays on layaway at Kmart, Sears, etc. That's what this kind of reminds me of.
I've used Affirm once for my Nectar mattress last year. It was pretty easy to use; soft pull offer, 0% offer for 18 months, but it only reported to one bureau (Experian). Would probably use again if I needed it.
@@Blacksabbath826 Mine shows up as a personal loan. Hasn't affected my score much. It did drop my score by 6 points at first, but I think that was more of the fact that it drops my average account age. Three months later and it's back to where it was before. .
Affirm is great, because it gives you other options besides pay in four, depending on your credit, & the total of your purchase. Paypal is good as well.
I owned a credit card once and I couldn’t pay it off. Apart from the 30% interest rate, there were so many fees and charges my payments made no impact on the amount owed. I was charged a fee for making a payment ffs! I made two payments in one month and received a late fee because they weren’t paid on a specific day. It was like owing money to the mafia. I got a personal loan to payout the card i rang them from the bank and asked for a payout figure, the bank paid it. The next month i received another demand including a late fee!! When i rang them i was told the payout figure was calculated for 10:30 or whatever in the morning, the time of the call, but the payment was made in the afternoon so the account had incurred interest which wasn’t paid so hence the late fee. By this logic you can never fully payoff the credit card! I will never, ever get another credit card. I’ve used zip, afterpay and humm. Made the requisite payments and never had a drama. I’d rather not use them at all but sometimes you need something now and don’t have the full amount.
That sounds like the worst credit card possible. Most credit cards aren’t that bad. Nowhere near close. Unless you have terrible credit and no one but the worse of the worse will accept you.
@@python27au never heard of em, but that explains it. If you would get another get it from more reputable ones. Capital one has some decent ones. Only thing I’ve ever worried about is interest. No other fees besides late fees
@@lorumipsum1129 it was one of the biggest companies in this part of the world. I bought some appliances through retrovision and their “in store credit” was through GE. They didn’t explain this upfront, they just said fill in this form and sign here. After it was too late i started hearing other peoples horror stories and warnings. No one ever says anything before you sign☹️. Anyway not going to do it again.
Should use both? Affirm 0 apr% and then the installments into a 2% cashback card. Money is worth less over time because of inflation so paying back money in installments works out to your advantage.
I'm use affirm a few times and it's always reported to my credit even if I've had it paid off before it was reported. Mostly try to use it when the APR is 0% on purchases I would have made anyways like my cell phone. Being able to use a credit card to pay after pay sounds enticing I might have to check that out.
It might be worth crunching a few numbers. I haven't used the online buy now, pay later services. If they have 0%, and especially if you can pay with a credit card to get another couple % off, that sounds like it might be worth considering for a purchase in the future.
With several major breaches in security regarding people's financial information. 3rd party payment apps offer the ability to make purchases without exposing your credit card number or other vulnerable details. It's my the app then the actual service. Check out is very simple using things like PayPal and Afterpay. And PayPal now offers pay in 4 as an option. Along with the security benefits of using a 3rd party payment service. It's not just about credit.
I use after pay on occasion and I do like it, I have three different cards attached to it so I spread the payments around so the balances are not all on one card. I normally pay the after pay purchase way ahead of the scheduled dates and it keeps the balance low on my credit cards since the full amount is not on one particular card which I am then able to pay the entire amount on my credit card and pay no interest.
Affirm reports to credit bureau and bread.but you payoff any time and this keeps your credit card free to use for real emergencies i have used the all abd pay them off without going the full term the choice is your but paying crefit off in full every month will some times lower your credit score vs keeping a small balance over time
You can support our channel by choosing your next credit card via one of the links below (in other words, we make money if you get approved): [Click "Read More" for Advertiser Disclosure] . - CardMatch™: rebrand.ly/p70ubk - Cash Back Credit Cards: rebrand.ly/8tz84x - Travel Rewards Credit Cards: rebrand.ly/27jk4y - Credit Cards For Good Credit: rebrand.ly/yi47oz - Credit Cards for Fair Credit: rebrand.ly/956h4w - Or, use our Amazon.com link: amzn.to/2PpQWoB (As an Amazon Associate, we earn from qualifying purchases.) . ADVERTISER DISCLOSURE: Unless otherwise noted, this channel receives compensation from our partner sites when you click through and are approved for a credit card through the links you see above. Compensation may impact how and where we place these links. While we try to include information on a wide variety of financial companies and products in our videos, we definitely can't guarantee that we've included every company or every available offer. NOTE: Credit card information in this video is not guaranteed; we have attempted to confirm all information to the best of our ability but we could simply be wrong or the information could be outdated by the time you watch this video. We are doing our best here, but check our work! Our site: www.ProudMoney.com Contact: Adam Jusko adam@proudmoney.com (for business/media inquiries only; unfortunately I do not have the time to offer thoughtful answers to the many individual credit & money questions I get by e-mail --- but I do read them and try to incorporate answers to common questions into future videos.)
It would be interesting to know which BNPL services (Amazon, PayPal, Klarna, etc.) have what APR, time for payments, what gets reported to the credit bureaus and when, as well as if you can pay them with a credit card & which ones, to get cashback or other rewards. The 0% sounds enticing, yet what are you buying and at what prices? Even if they only report to 1 credit bureau, it may help young people to get their foot in the door to get a credit card.
If you can pay for the item in one go then why use a credit card? Most reward scheme’s are rubbish. You spend thousands of dollars to get a few dollars back? If i have the cash i pay up front, i use the card attached to my bank account and it comes right out. Why would i charge it to a card and then go home and pay the card with my computer? Sounds silly.
Yeah but there’s a difference a big difference with a firm or firm runs your credit after pay and Karma don’t run your credit because I’ve been using both services for two weeks two years now, and I have to pay and I highly recommend them screw making big purchases with your credit card and paying whatever bank you have interest fees you’re better off doing it will have to pay and you pay zero interest rate on your big purchase
stupid question: how could fico and vantagescore be 100 points apart? is it just the lag fico has? with vantage, I went from bad to good, skipping over fair, in 30 days (utilization was calculated before i paid off the card and a new line came online)
Question. Is there a reason why Affirm lowered my score when I payed fully before the 12 months?? I understand that after you payed of something, the credit Company closes the account, but my score dropped by 10 Points and I consider that a lot. Please explain. Thank you.
Chip or Dale with that last post, Adam? Just don't say Thomas Chippendale. Thanks again for mentioning chipmunk awhile ago, now were back to English in this transcript. Them newfangled BNPL companies getting bought out (or company). Agree with those ending statements Adam.
I use PayPal in 4 and AfterPay. Both are great. No credit involved, installment payments available, no interests, and ideal for larger purchases.
I use both. Affirm with 0% offers and my cards. I usually pay my cards off every month.
Not sure about the others, but Klarna allows you to setup automatic payments with a credit card. I use a cash back rewards card for those payments, which I always pay off, so I’m getting the short no interest float and rewards at the same time.
I was thinking the same thing! If you get what you are buying on sale too, sounds like a sweet deal!
Which card did you use. Cause apparently capital one weren’t acceptable
Chase
As a kid that grew up in the early 80's, I remember my mom putting stuff for Christmas and birthdays on layaway at Kmart, Sears, etc. That's what this kind of reminds me of.
It's basically the same thing just rebranded
The difference is, you get the item now unlike layaway you could not take home the item until you finished paying it off.
@@w00tecplus no interest on layaway
Unless theirs a 0% apr promotion then I usually don't use these installment plans
duh
I've used Affirm once for my Nectar mattress last year. It was pretty easy to use; soft pull offer, 0% offer for 18 months, but it only reported to one bureau (Experian). Would probably use again if I needed it.
I used Affirm to buy a Pelton bike. Zero percent for the entire 3 year loan. And like you, they did report to Experian but nobody else.
Affirm is good and convenient however it will affect your Experian in negative way because it is a Consumer Finance Account.
@@Blacksabbath826 Mine shows up as a personal loan. Hasn't affected my score much. It did drop my score by 6 points at first, but I think that was more of the fact that it drops my average account age. Three months later and it's back to where it was before.
.
The thing I learned the hard way is that places like affirm put consumer finance on your credit report that drops your score..
Affirm is great, because it gives you other options besides pay in four, depending on your credit, & the total of your purchase. Paypal is good as well.
Affirm keep consistent reporting my payments on Experian
Yes they are a more traditional installment loan structure which usually does get reported.
Affirm changed. Payments was due monthly, now there do biweekly.
What an interesting topic. I have used Affirm, and Klarna.
I owned a credit card once and I couldn’t pay it off. Apart from the 30% interest rate, there were so many fees and charges my payments made no impact on the amount owed. I was charged a fee for making a payment ffs! I made two payments in one month and received a late fee because they weren’t paid on a specific day. It was like owing money to the mafia.
I got a personal loan to payout the card i rang them from the bank and asked for a payout figure, the bank paid it. The next month i received another demand including a late fee!! When i rang them i was told the payout figure was calculated for 10:30 or whatever in the morning, the time of the call, but the payment was made in the afternoon so the account had incurred interest which wasn’t paid so hence the late fee. By this logic you can never fully payoff the credit card!
I will never, ever get another credit card.
I’ve used zip, afterpay and humm. Made the requisite payments and never had a drama. I’d rather not use them at all but sometimes you need something now and don’t have the full amount.
That sounds like the worst credit card possible. Most credit cards aren’t that bad. Nowhere near close. Unless you have terrible credit and no one but the worse of the worse will accept you.
@@lorumipsum1129 it was from a company that used to be called ge money
@@python27au never heard of em, but that explains it. If you would get another get it from more reputable ones. Capital one has some decent ones. Only thing I’ve ever worried about is interest. No other fees besides late fees
@@lorumipsum1129 it was one of the biggest companies in this part of the world. I bought some appliances through retrovision and their “in store credit” was through GE. They didn’t explain this upfront, they just said fill in this form and sign here.
After it was too late i started hearing other peoples horror stories and warnings. No one ever says anything before you sign☹️.
Anyway not going to do it again.
Should use both? Affirm 0 apr% and then the installments into a 2% cashback card. Money is worth less over time because of inflation so paying back money in installments works out to your advantage.
Awesome video and topic to cover 🔥😁
I'm use affirm a few times and it's always reported to my credit even if I've had it paid off before it was reported. Mostly try to use it when the APR is 0% on purchases I would have made anyways like my cell phone. Being able to use a credit card to pay after pay sounds enticing I might have to check that out.
It might be worth crunching a few numbers. I haven't used the online buy now, pay later services. If they have 0%, and especially if you can pay with a credit card to get another couple % off, that sounds like it might be worth considering for a purchase in the future.
With several major breaches in security regarding people's financial information. 3rd party payment apps offer the ability to make purchases without exposing your credit card number or other vulnerable details. It's my the app then the actual service. Check out is very simple using things like PayPal and Afterpay. And PayPal now offers pay in 4 as an option. Along with the security benefits of using a 3rd party payment service. It's not just about credit.
What’s innovative about them is that it’s convenient. They are embedded on online websites and offered to you right before you check out.
Yeah. I just stick with my credit cards. Nice features when you want something. Installment plan are like Love or hate situations
I like your videos , thanks 4 the infos.
The trick is to always have 0% credit cards all the time. lol
I use after pay on occasion and I do like it, I have three different cards attached to it so I spread the payments around so the balances are not all on one card. I normally pay the after pay purchase way ahead of the scheduled dates and it keeps the balance low on my credit cards since the full amount is not on one particular card which I am then able to pay the entire amount on my credit card and pay no interest.
I think cc is better because more elegant
Can't get enough of those Crocs and giblets!!
Affirm reports to credit bureau and bread.but you payoff any time and this keeps your credit card free to use for real emergencies i have used the all abd pay them off without going the full term the choice is your but paying crefit off in full every month will some times lower your credit score vs keeping a small balance over time
Why would I use BNPL when credit cards give rewards and extended warranty?
"Crocs N' Jibbits"...LOL
You can support our channel by choosing your next credit card via one of the links below (in other words, we make money if you get approved): [Click "Read More" for Advertiser Disclosure]
.
- CardMatch™: rebrand.ly/p70ubk
- Cash Back Credit Cards: rebrand.ly/8tz84x
- Travel Rewards Credit Cards: rebrand.ly/27jk4y
- Credit Cards For Good Credit: rebrand.ly/yi47oz
- Credit Cards for Fair Credit: rebrand.ly/956h4w
- Or, use our Amazon.com link: amzn.to/2PpQWoB (As an Amazon Associate, we earn from qualifying purchases.)
.
ADVERTISER DISCLOSURE: Unless otherwise noted, this channel receives compensation from our partner sites when you click through and are approved for a credit card through the links you see above. Compensation may impact how and where we place these links. While we try to include information on a wide variety of financial companies and products in our videos, we definitely can't guarantee that we've included every company or every available offer.
NOTE: Credit card information in this video is not guaranteed; we have attempted to confirm all information to the best of our ability but we could simply be wrong or the information could be outdated by the time you watch this video. We are doing our best here, but check our work!
Our site: www.ProudMoney.com
Contact: Adam Jusko adam@proudmoney.com
(for business/media inquiries only; unfortunately I do not have the time to offer thoughtful answers to the many individual credit & money questions I get by e-mail --- but I do read them and try to incorporate answers to common questions into future videos.)
Best thing you can do is spend money while building credit so credit cards take the win buy now pay later still isint bad so have both 😊
I actually use 4 payment methods to pay off my debt.
HOW TO MAKE FINTEC COMPANY SOMTHING LIKE BNPL REGISTRATION PROCESS AND HOW TO FIND BANK TO FIANANCE OUR PROJECT ?
Can Affirm be used at that occasional nice restaurant
It would be interesting to know which BNPL services (Amazon, PayPal, Klarna, etc.) have what APR, time for payments, what gets reported to the credit bureaus and when, as well as if you can pay them with a credit card & which ones, to get cashback or other rewards.
The 0% sounds enticing, yet what are you buying and at what prices?
Even if they only report to 1 credit bureau, it may help young people to get their foot in the door to get a credit card.
Yep and You should make that video.
If you can pay for the item in one go then why use a credit card? Most reward scheme’s are rubbish. You spend thousands of dollars to get a few dollars back? If i have the cash i pay up front, i use the card attached to my bank account and it comes right out. Why would i charge it to a card and then go home and pay the card with my computer? Sounds silly.
Afterpay most definitely does offer Rewards.
Very well presented🤑😸
Yeah but there’s a difference a big difference with a firm or firm runs your credit after pay and Karma don’t run your credit because I’ve been using both services for two weeks two years now, and I have to pay and I highly recommend them screw making big purchases with your credit card and paying whatever bank you have interest fees you’re better off doing it will have to pay and you pay zero interest rate on your big purchase
Agreed
stupid question: how could fico and vantagescore be 100 points apart? is it just the lag fico has? with vantage, I went from bad to good, skipping over fair, in 30 days (utilization was calculated before i paid off the card and a new line came online)
Does Affirm still report the loans to Experian as a consumer finance account?
No they don't report to credit report
Interesting, I figured Amex is doing plan it to fight these payment companies
Hold up, this is layaway!
29bil lol square got fleeced. Im glad I sold sq.
BNPL will end once student loan payments begin.
Affirm is coming out with Debit Visa Card!!!!!!!!Why!!!!!!!! Affirm help me get my Credit Score 2 the high 700s!!!!!
Question. Is there a reason why Affirm lowered my score when I payed fully before the 12 months??
I understand that after you payed of something, the credit Company closes the account, but my score dropped by 10 Points and I consider that a lot.
Please explain. Thank you.
10 points is not a lot! Sorry bout your score tho.
It's a secret of mine but I use them together.....I get extra cash back and rewards it's fucking awesome
Chip or Dale with that last post, Adam? Just don't say Thomas Chippendale. Thanks again for mentioning chipmunk awhile ago, now were back to English in this transcript.
Them newfangled BNPL companies getting bought out (or company). Agree with those ending statements Adam.
It's layaway
Adam, I’m sure you’re busy and everything, but would you consider being my dad?
haha sorry, no more kids 🙂
😄😃🙂
First! 🥇
I see you. 👀
@@ProudMoney haha what can I say? your vids are the best!
Affirm is the WORST of them all!
What make them that?
Why do you say that?