Best buy now pay later apps

Having children can be expensive, there is always something else they need. Whether you are preparing for the arrival of your little one, chasing around after a toddler, or navigating school life with an older child, all your little one's stages can be costly, and that is on top of all the house hold expenses as well. With prices rising, it is not easy to always buy everything we need or want, and keep with in the family budget, which is why buy now pay later apps are rising in popularity. These apps let consumers buy what they need immediately and then pay later, avoiding one large lump payment.

While this sounds very convenient and it's tempting to fill our online shopping baskets with everything we want, it is worthwhile doing some research before committing to a payment plan. Citizens Advice say that 28% of UK adults will use a buy now pay later app during the festive period to help with spending. While the apps do let you buy the item you want straight away, it's not always free credit. Normally if you stick to your agreed instalments a lot of providers don't charge interest or late fees, however, if you miss a payment, fees could begin to mount and it might not seem like such a good idea.

Before agreeing to any payment plan, it is worthwhile considering if what you are purchasing is a necessity, especially if it is stretching your finances and you can't afford it straight away. On the other hand, a buy now pay later app might help you budget during a tight period or while receiving maternity pay. However, be aware, there are some worrying statistics with Citizens Advice saying a third of people who use buy now pay later apps are then borrowing more money to pay the instalment and avoid a late payment fee, and 21% of users have already missed a payment. It is worthwhile bearing in mind the financial pressure these apps might cause in the future . Ask yourself if the item is something you really want, or need, or if you can budget for Christmas or a special occasion without using credit.

If you decide using a buy now pay later app will give you some financial respite and you can afford the repayments, that is great and the apps should work for you. Ultimately, it is a decision for you and your family, just ensure you can afford the agreed instalments.

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With family finances more stretched than ever, an app that can help just a little bit and make the cost of essentials easier to bear, is tempting. It is important to do your research first, but don't worry we can help, below we have rounded up the best buy now pay later apps.

What can you buy with buy now pay later apps?

You can often choose a buy now pay later option at the checkout as a payment option, and many retailers are now onboard with these apps. You can also search participating retailers through the buy now pay later app you have chosen to download.

In terms of items, it is extremely varied including clothes, home decor and furniture, toys, tablets and laptops, and even groceries. The Guardian reports that one buy now pay later app has "advertised on Facebook that consumers can “pay back over six weeks” for Domino’s Pizza and Uber Eats. It also advertised that consumers can pay in four interest-free instalments for their coffees." While this is useful, especially if your household food budget is tight, Christopher Woodard, the FCA's former interim chief executive, believes, "buy now, pay later could be a useful tool, but a shopper could quickly amass £1,000 of credit using multiple lenders and it could cause consumer harm." Citizens Advice found 11% of respondents used buy now pay later apps to pay for groceries, and that rose to 35% for regular users of the apps.

Buy now pay later apps let you buy a wide range of items, even groceries, but consumers should assess how urgent or neccessary those purchases are to avoid accumulating debt.

When should you use buy now pay later apps?

Buy now pay later apps are really handy if you have a big birthday coming up, or Christmas is approaching and you need some help to spread the cost. It is also useful for slightly larger purchases like furniture or home decor, however, they should be used with caution. Citizens Advice say they have seen a 67% increase in people seeking their help due to debt from buy now pay later apps.

Before using buy now pay later apps it is important to ensure you can make the repayments. While many offer interest free payments, and no late fees, there could be hidden fees or costs in the small print, and there is a risk they encourage accumulating debt. That said, used with care, they really do help families buy expensive items such as pushchairs or nursery furniture they might not have been able to afford in one single payment and we all know how the cost of baby items can mount up, there is always something new your little one needs.

Do you need a credit check to use a buy now pay later app?

Most buy now pay later apps will perform a soft credit check when you select them as a payment option. This means they will assess your credit record to help them make a decision on your application but it doesn't show on your credit record. If you have a low credit rating, or a history of debt problems, because buy now pay later apps only perform a soft credit check, it means there is more chance you will be accepted because they don't look at your credit history in depth. Do be aware that some buy now pay later apps perform more in depth checks and therefore it could affect your credit rating.

Will buy now pay later apps affect your credit score?

There are potential benefits and negatives to buy now pay later apps and your credit score. Because they are not fully regulatedand often only perform soft credit checks, if you fulfil all your payments on time, it won't necessarily improve your credit rating, however, it could negatively impact your credit score if you fail to make payments on time, or fall into debt. Money Supermarket explains: "If you buy more than you can afford through BNPL and start missing payments, the provider may pass on this information to the credit reference agencies and it will be recorded on your credit file – and could harm your credit score. Whereas if you have a low credit score or haven’t borrowed in the past – perhaps because you have just turned 18 – then showing you can handle credit responsibly through buy now pay later could boost your credit score." This is only true though if you choose a provider who will record and report your information to a credit rating agency.

How to choose the best buy now pay later app for you?

If you decide you need to buy something using a buy now pay later app, or need to make an emergency purchase, it is best to do your research. Forbes suggest the following tips to help you decide:

Check fees: Are there late fees, or interest if you miss a payment, or go beyond the agreed repayment schedule?

Read user reviews: See what other users say about each app to help you make an informed decision.

Consider your needs: Make sure you choose the app which works best for your needs, considering number of repayments you can schedule, time limit, fees, and amount you can borrow.

Compare payment plans: There is quite a lot of variety in the buy now pay later apps when it comes to payment plans. Instalments can range in amount, and the time period can be 6 weeks or 12 months or somewhere in between. Check the small print too, some providers let you pause or reschedule your payment plan, while others do not offer as much flexibility.

Family life is expensive and buy now pay later apps might ease the burden a little, which is great, as along as you know you can manage the repayments and don't borrow more than you can afford.

Laura Healy is a Commercial Content Writer for Mother&Baby. She is a mum-of-two girls and loves writing about all things parenting, she is particularly interested in the toddler years and eco-friendly baby products, as well as children’s literature. She has a PhD in Creative Writing and has published short stories in the UK and Ireland, as well as previously writing freelance for her local paper.