Signing up for ‘buy now, pay later’ (BNPL) schemes like Laybuy just takes a few clicks, but addressing an issue when something goes wrong may be more difficult. Each BNPL program operates differently, which can be perplexing if you use more than one, and inability to make a repayment might hurt your credit score.
If you want to use one, be sure you understand how the repayments operate and what to do if there is an issue with your order. In this section, we will discuss how to use the innovative wave of BNPL options at the web checkout safely.
If something bad happens, know your rights
When you use a credit card to pay for something, you have additional protection under the credit act. This means that if you use your credit card to pay for something valued between a certain amount and your item does not arrive or is damaged, you can get your money back from your card company. Because most BNPL schemes are not regulated under a general credit act, you will not be eligible for Section 75 protection, however each plan does have a safeguard policy in place.
Layby has stated that if something goes wrong with an order, they would erase the debt. Other BNPL schemes have claimed that customers might be reimbursed if the issue with the shop couldn’t be handled. If you’re making a large purchase or want certain protection, it can be worth it to use a 0% credit card to pay. They operate similarly to BNPL programs but allow you to stretch the expense of repayments over a longer period of time (three to 27 months) and offer the extra benefit of a credit act protection.
Set up payment alerts
Missed payments can have a six-year impact on your credit report, so it’s critical to be aware of when you need to pay. Depending on the store, some ‘Pay later’ options requires you to complete the complete payment 14 or 30 days after purchase.
Other programs, such as those offered by Laybuy, allow you to break payments into multiple instalments, which can be difficult if you don’t keep track of the dates someplace. Most of these payment plans will automatically deduct funds from the card you enrolled with, so it’s a good idea to set alerts on your phone or planner to guarantee you have enough in your account.
Make sure you understand the penalty for late payments
Failure to pay has distinct penalties in each scheme, and it’s critical that you understand what they are. Some schemes do not charge late fees, but if you miss a payment, it may charge the outstanding amount on any card it holds for you.
Late payments to Lay buy are subject to additional costs. Don’t hide your head in the sand if you’re going to be missing a payment. You should contact the company since it may be able to suspend late fines or recommend alternative solution.