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Afterpay review: Pay off your purchase with no interest, but there's only one repayment term option

Afterpay Logo on green background with gold coins
You're able to use Afterpay as a payment option with thousands of retailers. Afterpay; Insider

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Afterpay Buy Now, Pay Later
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On Afterpay's website
Insider’s Rating
A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star
4.5/5
Regular Annual Percentage Rate (APR)

0%

Fees

Late fee of $8 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

Recommended Credit

Undisclosed

Pros
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Only soft credit credit check needed
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No interest on purchases
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Excellent mobile app
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Can use with thousands of retailers
Cons
  • con icon Two crossed lines that form an 'X'. Late fees
  • con icon Two crossed lines that form an 'X'. Not all orders are approved
  • con icon Two crossed lines that form an 'X'. Only one repayment term option
Product Details
  • 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

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What is Afterpay? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Afterpay 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. 

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 Afterpay at checkout. Some popular companies include Adidas, Lululemon, Ulta Beauty, and Levi's.  

How does Afterpay work? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

There's no cost to use Afterpay — as long as you make on-time payments. If you don't pay more than 10 days after the due date, you'll fork over a late fee of up to $8. 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 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 Afterpay doesn't report them to any credit bureau. 

To use Afterpay, you need to be a resident of a US 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. 

Pros and cons of Afterpay

Who is Afterpay best for? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Afterpay 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 most other lenders, the company also doesn't charge interest — a major benefit for many borrowers. 

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. Make sure you've budgeted for the item before making your purchase. 

How Afterpay compares to other Buy Now, Pay Later apps

The Afterpay logo.
Afterpay

The Affirm logo.
Affirm
The Klarna logo.
Klarna

Payment plans offered

Split over four interest-free payments

Payment plans offered

Split over four interest-free payments, six months with interest, or 12 months with interest

Payment plans offered

Split over four interest-free payments, or pay in 30 days with no interest

Late payment fee

$8 if you miss a payment by 10 days or more

Late payment fee

None

Late payment fee

$7 if you miss a payment by 10 days or more

Shop with Afterpay

Shop with AffirmShop with Klarna

Of Afterpay, Affirm, and Klarna, only Affirm doesn't charge any late fees. Late fees could add to the total cost of your borrowing, so set up a proper budget to make sure you don't fall behind. 

All three companies offer a "pay in four" option, meaning you pay for your item over four installments. Additionally, each company boasts a roster of thousands of companies they have partnered with, making buy now, pay later accessible for many different types of purchases. 

How trustworthy is Afterpay? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Afterpay is rated a B by the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB lists hundreds of complaints filed against the business as the reason for its grade. The BBB determined 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. Talk to friends and family who have used the company to get a fuller picture of Afterpay.

Afterpay hasn't been involved in any recent controversies.

Frequently asked questions

Does Afterpay affect credit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

No, Afterpay does not affect your credit score as the company does not report your payment history to any credit bureaus. 

Can I pay off my Afterpay purchase early? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Yes, you can pay off your buy now, pay later plan ahead of time. The company won't charge you any fees for doing so. 

How does Afterpay make money? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

The most substantial way Afterpay makes money is through merchant fees. It charges companies a percentage of each transaction. Afterpay also makes money through charging late fees. 

How do I get approved for Afterpay? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

To get started, you'll create an account with the company and receive an instant approval decision. Afterpay takes a number of factors into account when deciding if you qualify, including your credit history.  

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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