Buy now pay, later services are becoming increasingly popular as consumers look for alternative solutions to finance purchases. Apple is joining in with its own buy now, pay later service called Apple Pay Later, which will be available to Apple users. The technology brand announced its plan to introduce this service in the coming months. Should you give it a try?
Saving up money, charging your credit card, and then paying it off in full is one way to finance a purchase. But that isn’t the only option. Buy now, pay later services allow consumers to make a purchase and pay it off in installations.
You could score a limited-time 0% APR through these services, making financing affordable. However, that isn’t always the case.
Some BNPL plans have high interest rates and charge other fees like late payment fees. It’s important to review all terms before using these services.
Our research shows that over 50% of adults have tried BNPL services, and it’s likely that number will continue to grow as these services become more widely available.
Apple introduces Apple Pay Later
Earlier this month, Apple highlighted the top improvements and new features to its upcoming software update, iOS 16, which will be available later this fall.
Apple Pay Later is one new feature that will be added to Apple Wallet. American users will be able to split the cost of an Apple Pay purchase into four equal payments spread over six weeks. During those six weeks, there will be zero interest charges and no fees.
Apple users can keep track of their Apple Pay Later spending and make payments within the app. Apple Pay Later will be available wherever Apple Pay is accepted online or within the Apple Wallet app.
This could offer a convenient way for Apple users to pay for purchases without worrying about expensive credit card debt. It’s worth noting you’ll need to be approved to use Apple Pay Later — so this service won’t be available to all consumers.
Should you use Apple Pay Later?
If you can afford to pay off the expense within six weeks, Apple Pay Later could provide a simple way to finance purchases you make using Apple Pay. Always consider your personal finance situation before making a purchase.
Since you’ll need to be qualified to use this service, you’ll want to ensure your credit score and financial situation are in good standing first. If you have a lot of debt or a poor credit score, it’s possible you may not be approved.
The good news is you can take steps to build your credit and improve your finances. It’s never too late to make positive changes in your life.
When used with care, credit cards can be another way to finance purchases and build credit. With the right credit card, you can also earn valuable rewards. Review our list of best credit cards if you’re in the market for a new credit card.
Check out The Ascent’s best credit cards for 2022
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