How to borrow at 0% that is to say free of charge (or as close as possible)
Buy now, pay later: Easy, fast, uninteresting, NO protection
Ideal for borrowing up to Â£ 300. Buy Now, Pay Later (BNPL) does exactly what it says on the box. Usually, it is offered to you at online checkouts (and some real ones). The goal is to get you to buy the item now and spread the cost over a few weeks or months. Our Should I buy now, pay later? guide walks you through it, but in short:
ï¸ Advantages: Interest-free, therefore free of charge | Easy to get | Refunds are fixed
?? The inconvenients: Encourages people to borrow on a whim, when not necessary | It is (currently) largely unregulated – so no recourse to the ombudsman if things go wrong | No section 75 protection on purchases | In the very short term
The biggest problem with BNPL is that people get it when they don’t need it. They try to lure people into online cash registers as “an easy way to spread the costs,” but borrowing should be planned, not sold.
However, if you do need occasional short-term borrowing on items you need up to a few hundred pounds, provided you have the money to pay it off, it’s easy and interest-free.
Be aware that if things go wrong it can affect your credit report, you may not get what you ordered delivered, late payment fees and more may be charged, and currently, if you are in a dispute. , you rely on the company to do it. the right thing, otherwise you will have to sue them.
MSE and I were among those pushing hard for BNPL to be regulated so that you get these protections. The government has agreed that this will happen which will make things better, but it’s like wading through molasses – hopefully it will be in place next year.
The best offers of the moment: There is no first choice here, as it is tied to the BNPL company where you shop.