If you’re worried about overspending this Christmas, you may feel like credit debt could make things worse. Traditional creditors charge high interest rates whereas overdraft fees bring firms billions of dollars in revenue each year.
But if you think those are the only options, you’ve probably never heard of Buy Now, Pay Later (BNPL).
BNPL allows you to break purchases into more manageable amounts and pay them in instalments.
- Interest ranges from 0% to 19.9%.
- Fees are typically $0 but vary depending on the retailer.
- Penalties may include high interest and fees, or account suspension.
- Retailers vary depending on your provider.
Comparing the Three BNPL Services:
What Sets Zilch Apart
- 2-5% cashback.
Pay in full for your purchase using Zilch and earn the best cashback rewards in the UK.
- Tap and pay anywhere.
The only BNPL service that can be used online and in-store, anywhere that accepts MasterCard.
- Responsible lending.
Instead of charging predatory fees and interest rates, Zilch places a hold on your account when you miss a payment.
In order to protect you from fraud or theft, Zilch requires you to pay your first purchase in full before you can begin making more.
- A Snooze or a Boost if you need it.
Snooze allows you to place a temporary hold on your payments for a few days.
Boost allows you to make purchases over your spending limit, provided you pay the total amount that exceeds your limit upfront.
The sign-up process for Zich takes 3 minutes and requires only a soft credit check, so your credit score won’t be impacted. You’ll be assigned a spending limit, which is typically between £100-£600.
Shopping with Zilch
Shop thousands of brands without fees on the app or Tap to pay anywhere that accepts MasterCard.
Making Your Payments
The payment plan breaks your purchase into 4 equal payments and charges your account biweekly for a total of 6 weeks. You’ll receive notifications before each payment is due.
At the time of purchase:
Pay £40 at the checkout. Remaining balance: £120.
2 weeks after purchase:
A payment of £40 is charged to your account. Remaining balance: £80.
4 weeks after purchase:
A payment of £40 is charged to your account. Remaining balance: £40.
6 weeks after purchase:
A payment of £40 is charged to your account. Your balance is paid.
The UK’s Best BNPL Provider
It’s easy to see why Zilch is one of the fastest-growing UK BNPL providers:
- The highest rate of cashback rewards available in the UK, earning families an average of £870 per year.
- The only BNPL that can be used in-store anywhere MasterCard is accepted.
- Most consumer-friendly BNPL service with no hidden fees and no interest.
Signup takes only 3 minutes and won’t impact your credit score.
Kirsten Anderson is a freelance tech writer from Edinburgh. She specializes in creating content that promotes Gen Z financial literacy as well as in-depth coverage on innovations in the finance industry.