And if you get into trouble with more Afterpay purchases than you can handle, there is a hardship program available. If you have outstanding orders, you won’t be able to make a new purchase. If a week goes by and you still have an outstanding balance, you’ll be charged another $7 fee. But if you miss a payment, or don’t have enough money in your account for a direct debit, you’ll then be charged a $10 late payment fee. There are a number of factors that make up your estimated spend, such as how many purchases you’ve made or have going and whether you make your repayments on time.Īs you probably already know, Afterpay works by splitting the cost of your shop into four, equal payments, which are made every fortnight. However, as you continue to use the account responsibly and make payments on time, the more that limit increases. When you sign up for an account, Afterpay will provide you with an ‘estimated spend’ limit, which can typically be on the lower side. That said, it can be frustrating when there’s no way to tell whether you’ll be approved or not.Īs a rule of thumb, the longer you use the platform, the more likely you’ll be approved, so one tip is to start with small purchases to work up a good repayment history and then try out a bigger spend. Keep in mind that each approval is decided on a case-by-case basis, so if you are rejected once, that doesn’t mean you will be next time. Interestingly, Afterpay may also choose to not approve a purchase to protect themselves from a ‘non-payment risk’. This is to prevent fraud, if they believe an order may be suspicious. Source: TrustpilotĪccording to the Afterpay’s terms and conditions, the company has the right to choose to not approve or cancel an order or product. This comes down to the algorithm Afterpay uses to approve purchases. One of the common complaints about Afterpay is that some users are rejected from placing orders, seemingly for no reason. READ THE REPORT: Australia's Afterpay obsession: A report into the features, buying habits and traps of the modern day layby So if you always meet your payments promptly, you could think of Afterpay as credit rating neutral. It’s also worth noting that because there is no credit check, positive use won’t officially go toward helping you build up a good credit history either. This includes things like late or missed payments, defaults or chargebacks. However, Afterpay reserves the right to perform credit checks and to report negative activity on your account, which could result in a black mark on your record, just like with any other source of credit. There is no credit check before you apply for Afterpay and it won’t affect your credit history - as long as you use it responsibly. Afterpay won’t affect your credit score, unless… Let’s take a look at some of the traps an Afterpay user might fall into, and what they can mean for your bank balance. In fact, it took out 3 awards in the 2022 Mozo People's Choice Awards for Buy Now Pay Later - Outstanding Customer Satisfaction, Range of Retailers, and Most Recommended!īut there’s no such thing as a free lunch, and even a payment platform that promises you can shop now, use now and pay later – interest-free – has its downsides. Afterpay has taken Australian shoppers by storm, with more than one million customers and almost five million transactions being made on the Buy Now Pay Later (BNPL) platform since its launch in 2015.
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