Business Insider's personal finance team compared Afterpay Buy Now, Pay Later to the best buy now, pay later loans and found it to be an industry leader.
Afterpay is an excellent choice for borrowers who would like to make a purchase and spread out the cost over several payments, especially if you don't want to pay interest using its Pay-in-4 option. However, it's important to treat it responsibly, learn how to budget effectively to make sure you can afford the item before using a buy now, pay later service.
Afterpay Pros and Cons
Afterpay Pros
- Only a soft credit check is required. A soft credit check will not impact your credit score and is solely used to help Afterpay Buy Now, Pay Later make a lending decision. This credit check will allow it to set your initial spending limit.
- Spread out payments over six weeks. You'll make your first payment equaling one quarter of the order value when you purchase an item, then a payment every two weeks after that until you've paid 100% of the item's value. If you don't have all the cash up front to buy what you want, this could make the item affordable.
- Easy to shop on the mobile app. The service's mobile app is extremely well reviewed on both the Google Play and Apple stores. You're able to manage your payments from the app as well as browse products from different companies.
- Available with thousands of retailers. You may be able to use Afterpay at most of your favorite stores.
Afterpay Cons
- Late fees. Afterpay charges a relatively small late fee of $10 if you miss a payment by 10 days or more. If you continue to pile up late fees, it caps the total late fees on your purchase to 25% of the order's value.
- Not all orders are approved. Afterpay is "committed to ensuring [it] supports responsible spending," according to its frequently asked questions page. If the company deems you ineligible to use buy now, pay later because of your financial situation, you'll have to either find a different way to afford your item or choose not to buy.
- Lower spending limit. Compared to what you can charge with a credit card, Afterpay's initial maximum spending limit of $600 is on the small side. This can be good for managing repayments but limiting if you'd hoped to use the service for bigger-ticket items or for multiple orders simultaneously.
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0.00% to 35.99%%
late fee of $10 if you miss a payment by 10 days or more, cap on the total late fees on your purchase to 25% of the order's value
Undisclosed
Pros
Cons
- Repayment is split over four interest-free installment payments
- The amount of credit available to you depends on your history as a Afterpay customer and if you've been making payments on time
- Afterpay doesn't report your payments to credit bureaus
- Need to be a resident of a US state or Washington, DC
6.49% to 35.49% fixed (with all discounts)
$5,000 to $100,000
680
Pros
Cons
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
9.95% to 35.99%
$2,000 to $35,000
600
Pros
Cons
Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.
Avant- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 2 to 5 years
- Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
- Loans made by WebBank, member FDIC
6.99% to 35.99%
$2,000 to $50,000
600
Pros
Cons
- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 3 to 5 years
- You may get your money by the next business day after your loan is reviewed and approved
- Loans made by Best Egg's lending partners
- Unavailable if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories
Afterpay Overview
What is Afterpay?
Afterpay Buy Now, Pay Later is a buy now, pay later (BNPL) lender that allows you to spread out the cost of an item over a series of installment payments. You'll make the first of four payments when you purchase the item, then will pay off the rest over six weeks. Your payments will be due every two weeks.
Depending on the cost of your order, the merchant you buy from, and the state you live in, you may be able to access longer-term financing, giving you the ability to pay off a purchase over six or 12 months, but you'll owe interest with this option.
Afterpay's Pay Monthly option allows you to finance purchases over $400 with repayment terms of 6 or 12 months. This plan involves interest charges, with Annual Percentage Rates (APRs) ranging from 0.00% to 35.99%, depending on your creditworthiness and the merchant.
How Afterpay Works
You will choose Afterpay as your payment method when checking out at your preferred retailer. You can use Afterpay in the app, on a retailer's website, and for in-person shopping. There are thousands of retailers that allow you to use it at checkout, including Adidas, Lululemon, Ulta Beauty, and Levi's.
If you don't pay more than 10 days after the due date, you'll fork over a late fee of up to $10. You may pay more late fees if you continue to make delayed payments, but the total sum of the late fees you can pay on a specific purchase is capped at 25% of the order's value.
Importantly, Afterpay Buy Now, Pay Later doesn't approve 100% of orders and instead considers several factors before giving your purchase the green light. For instance, the longer you have used Afterpay, the more likely you may be to have a purchase approved. The amount you have to repay and the number of orders you currently have open with the company also factor into the lending decision.
Afterpay may conduct a soft credit check when you sign up for the platform. A soft credit check allows a lender to see your credit history without impacting your credit score. Some lenders use a hard credit inquiry, which does impact your credit score. Buy now, pay later payments also will not affect your credit score, as it doesn't report them to any credit bureau.
To use Afterpay, you need to be a resident of a U.S. state or Washington, DC. You also need to be at least 18 years old (or 19 in Alabama) and provide a few pieces of contact information.
If you decide to use it's other six- or 12- month installment payment service, you will go through a similar process but must spend at least $400 to qualify. There are no late fees or origination fees, but you will pay interest up to 35.99%.
Afterpay Features and Benefits
Afterpay Interest-Free Payments
Afterpay's standard delayed payment plan gives you six weeks to pay off your purchase without incurring any interest charges or fees. The amount you end up paying after using the service remains the same as the total cost of the items you bought at a participating retailer's website or store. That's because the service primarily makes money through the merchant fees it charges companies, which equal a certain percentage of each transaction.
Afterpay Payment Schedule
It typically splits your purchase into four equal installment payments due two weeks apart. You make the first payment when you checkout and the remaining three over the next six weeks. But there is some flexibility to change that schedule to better suit you.
For instance, you can pay off your buy now, pay later plan ahead of time and the company won't charge you any fees for doing so. Or, you can set a preferred payment day, which moves your payment due date to a different day of the week selected by you. So if you bought something on a Monday, but selected Friday as your preferred day, the subsequent three payments would be due on Fridays, increasing your overall payment timeline by four days.
If you need a little extra time to pay, you may be able to move the due date for one part of your payment. You typically cannot reschedule the first or last payments through the website or app and will need to go through one of its customer service reps. If your payment is already overdue or due within 24 hours or you're a brand new customer, you cannot move the due date.
Afterpay Mobile App
Afterpay offers a robust and well-reviewed app to its users that lets them control much of their experience, from tracking payment dates to browsing through items from its hundreds of participating retailers.
Afterpay Card
To make a purchase at a physical store, you can use its digital card. You'll need to set up the card in the app's in-store tab and then add it to your Apple Wallet or Google Wallet to make a contactless payment when checking out. The app will show you the maximum amount you've been preapproved to spend on your Afterpay card.
How to Apply for Afterpay
Step-by-Step Guide to Apply for Afterpay
To get started, you'll create an account with the company either by downloading the app or visiting the Afterpay website. If you're already online shopping, you can choose Afterpay at checkout before even registering. You'll receive an instant approval decision. It takes a number of factors into account when deciding if you qualify, including your credit history. For those that access first through a retailer, you'll need to visit after.com or the app to set up a password and complete your account.
To set up an Afterpay account, you must be at least 18 years old, a resident of the U.S, and pass certain identity checks. You'll need to provide a verifiable email address and mobile telephone number; valid U.S. delivery address, and the details or a debit or credit card you are authorized to use.
Once the account is set up, you can visit one of the service's partner retailers or shop through the app. When you're checking out, select the Afterpay option from the payment choices and log into your account to complete the transaction and have your order total split across four payments.
Tips for Managing Payments through Afterpay
Afterpay makes it easy to keep track of when payments are due. It sends reminders out via text and email before the bill's due date and allows users to view their payment schedules anytime on the its website or mobile app.
You can also enroll in automatic bill pay, if you don't want the hassle of remembering to log into your account and make the payment yourself. This option lets Afterpay deduct the outstanding payment from a designated bank account, debit card or credit card on the due date.
Afterpay Rates and Fees
You don't need to pay anything to sign up or use Afterpay. The company charges no upfront costs, origination fees, or interest for completing purchases through its buy now, pay later service Pay-in-4 option. You can incur late fees, though, if you miss the due date for one or more of your four scheduled repayments by more than 10 days.
If you opt for its six- or 12-month repayment plan, you will face no late fees or origination fees, but owe interest.
Afterpay Late Fees
If you fail to make one of your installment payments and it becomes overdue by 10 days or more, Afterpay charges a $10 late fee. Continue skipping payments and you'll rack up additional fees equal to as much as 25% of the order's total value. It will also pause your account when you miss a payment, preventing you from using the service to buy anything else until you've repaid what you owe.
Afterpay Customer Experience
The Afterpay app has a 4.9 star (out of 5) rating on the Apple app store and a 3.8 star rating on the Google app store, with many users praising the easy set up, lack of a hard credit check to qualify, and no-interest financing for its Pay-in-4 option.
Afterpay also has a 4.7 star (out of 5 rating) on Trustpilot, with customers praising the convenience, flexibility, and ease of use the platform offers when managing purchases and payments.
Be careful — buy now, pay later programs might entice you to buy something you may not realistically be able to afford. Just because the bi-weekly payments look small doesn't mean the total cost isn't still significant. One study of almost 11 million people's bank and credit card data found that people paid at least $176 more per year in overdraft fees, credit card interest and late fees after starting to use buy now, pay later services like Afterpay. Some users have also expressed frustration with customer support received and the timeline of the refund process when an order is canceled or returned.
How Trustworthy is Afterpay?
Afterpay Buy Now, Pay Later is rated an A+ by the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB determines ratings based on a company's response to customer complaints, honesty in advertising, and openness about business practices.
Keep in mind that BBB ratings don't always guarantee you'll have a good relationship with the lender. It only has a 1.13 star rating out of five on the site. Talk to friends and family who have used the company to get a fuller picture of Afterpay.
Afterpay Alternatives
Afterpay vs. Affirm
Afterpay Buy Now, Pay Later offers a pay in four option as well as few monthly installment plans, but not as many as Affirm does. Afterpay also charges late fees, which Affirm does not. Both BNPL services are widely available and integrated into the checkouts of hundreds of different retailers and offer a digital one-time use shopping card for in-store shopping. Afterpay does not report your repayment activity to the credit bureaus, like Affirm sometimes does.
Read our Affirm review.
Afterpay vs. Klarna
Like Afterpay, Klarna offers multiple repayment plans, including a pay in four option and a pay in 30 days option. On larger purchases, it does sometimes provide longer financing plans, usually between six months to two years. Klarna also charges late fees, which Afterpay does as well. Both BNPL services can be used at hundreds of different retailers. Finally, Klarna does not report repayment activity to the credit bureaus, and neither does Afterpay.
Read our Klarna review.
Afterpay vs. PayPal Credit
With PayPal Credit, you can delay paying off a purchase of $149 or more for up to six months with no interest charges, but because it is a line of credit, it will require a hard credit check to get approval, which could impact your credit score. Afterpay's application requires only a soft credit check.
PayPal also charges late fees that can be as much as $41. And, if you fail to pay off the order within six months, you'll be on the hook for interest too. PayPal Credit will charge you deferred interest, often at high rates like its current 31.39% APR, dating all the way back to the date of the purchase.
Which One is Right for You?
Afterpay Buy Now, Pay Later is best for customers who want to spread out the cost of their purchase over multiple paychecks. You'll make Afterpay payments every two weeks, which syncs up well with a bi-weekly pay period. Unlike other lenders and credit cards, the company also doesn't charge interest — a major benefit for many borrowers.
The $600 maximum spending limit for initial customers means Afterpay will work best for shoppers looking to afford smaller purchases rather than big-ticket items like furniture or expensive tech.
Why You Should Trust Us: How We Rated Afterpay
Business Insider evaluates buy now, pay later services equally, using a rating system that considers a range of factors from fees to customer support. We highlight the strength and weaknesses of each company in our guides as well as compare them with others that are available so you can decide which BNPL plan suits your needs best.
At Business Insider, our reviews are guided by editorial independence, meaning our recommendations and ratings are based on objective criteria, thorough research, and expert analysis. Advertisers do not dictate our content, ensuring our reviews remain transparent and unbiased.
Afterpay Review FAQs
What is Afterpay and how does it work?
Afterpay is a buy now, pay later service that allows you to make purchases and pay for them in four equal installments, interest-free, over six weeks. Additionally, Afterpay also offers a Pay Monthly option for purchases over $400, which allows you to break the payment into monthly installments over 6 or 12 months.
Should I use Afterpay?
You should consider using Afterpay if you're confident in your ability to budget and make all your payments on time, as it allows you to split purchases into four interest-free installments. If you're considering the Pay Monthly option, it's important to review the interest rates, which can be as high as 35.99% APR depending on your creditworthiness.
How does Afterpay impact your credit score?
Using Afterpay will not affect your credit score. The company does not perform credit checks and does not report your payment history to any credit bureaus.
Is Afterpay legit?
Yes, Afterpay is a legitimate service. It's accredited by the Better Business Bureau (BBB), which reflects its commitment to trustworthy business practices and customer service standards. Afterpay operates in several countries and partners with a wide range of retailers, making it a widely accepted payment option.
Is Afterpay safe?
Yes, Afterpay is safe to use. It uses secure encryption to protect your personal information and payments.
Fixed rates from 6.49% to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 08/08/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000— $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 9/14/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.
