Buy now, pay later (BNPL) loans, also known as point-of-sale loans, allow consumers to pay for purchases in small installments, usually over several weeks. Unlike credit cards, this short-term financing doesn't require great credit and is often offered without interest or late fees.
Many BNPL providers have emerged in the past few years, and consumers are increasingly flocking to them to finance everything from appliances to vacations.
With so many buy now, pay later options available, which are the best? To decide, we looked at rates, repayment options, late fees, participating merchants, and more. (See our methodology for more info on how we made our choices.)
Best for large purchases: Klarna
Who's this for? Klarna has no preset credit limit for its point-of-sale loans, making it a good option if you're using a BNPL for a big-ticket item.
Standout benefits: Users can make 4 interest-free payments every 2 weeks, one payment within 30 days or monthly payments for 6 to 24 months. Some merchants offer cash back, including Instacart, eBay, Sam's Club, Sephora, StubHub and Macy's.
Klarna
Credit limit
Initial limit of $100; may be increased up to $2,500.
Loan terms
Four interest-free payments every two weeks or a one-time payment within thirty days
Monthly payment plan?
Yes, users can pay over 6 to 24 months.
Fees
Late fee of up to $7 (after 10 days)
Available merchants
Accepted at nearly 800,000 merchants, including Amazon, Best Buy, Walmart and Target. Through the Klarna card, you can buy from retailers not integrated with the company.
Pros
- No late fees
- Widespread acceptance
- Multiple payment options
Cons
- No way to reschedule payments
- Some loans come with interest (Does not apply to Pay in 4 and Pay Later)
Best for small purchases: Afterpay
Who's this for? Afterpay's minimum purchase is usually $35, making it a good choice if you're buying something small. On the other hand, the $25,000 limit per loan is also one of the most generous we've seen and is available with a 0% APR.
Standout benefits: Afterpay doesn't charge interest and can be used at more than 100,000 online and brick-and-mortar merchants worldwide.
Cash App Afterpay
Interest rate
0% on purchases under $400. Up to 35.99% on purchases over $400.
Credit limit
$35 to $2,500 per transaction.
Loan terms
Four installments over six weeks.
Monthly payment plan?
Yes, Pay Monthly plan is available for purchases from $100 to $10,000, with payments across 3, 6 to 12 or 24 months. APR ranges from 0% to 35.99%.
Fees
One-time late fee of up to 25% on purchases under $40. For purchases of $40 or more, an initial $10 late fee and $7 for every 7 days, up to $68 or 25% of the purchase price, whichever is less.Â
Available merchants
Afterpay is accepted at over 15,000 merchants nationwide, including Sephora, Ulta Beauty, Target and Best Buy.
Pros
- Soft credit check
- Can be used online and in stores
Cons
- Late fee can be as much as $68
- Pay Monthly not available in Hawaii, New Mexico, Nevada or West Virginia
Best for online shopping: PayPal Pay in 4
Who's this for? Coming from the world's largest online payment platform, PayPal Pay in 4 is accepted everywhere PayPal is. That's millions of merchants, including household names like Apple, Target and Home Depot. It doesn't even require a separate app or browser extension, just a PayPal account.
Standout benefits: PayPal Pay in 4 doesn't charge any late fees or interest. It usually doesn't check your credit score either, using what a rep called "vast consumer data to understand an applicant's creditworthiness."
PayPal Pay in 4
Interest rates
0%
Credit limit
Purchases must be between $30 and $1,500
Loan terms
Four payments every two weeks for six weeks
Monthly payment option?
Yes, 6-, 12- or 24-month plans with $0 down available for purchases $199 to $10,000. APRs from 0% to 29.99%.
Fees
No late fees.
Available merchants
Pay in 4 is available at millions of retailers, but is not accessible for merchants not integrated with PayPal.
Pros
- No interest or late fees
- Connected to millions of retailers that accept PayPal
- Looks at factors beyond credit scores when determining eligibility
Cons
- Can only use with merchants connected with PayPal
- Only for online purchases
- Not available in Missouri or Nevada
- Purchases capped at $1,500
Best for widespread availability: Affirm
Who's this for? Affirm is accepted by more than 320,000 merchants, including Amazon, Expedia, eBay, Walmart, Target, Old Navy, lululemon, Costco, eBay Auto and Hotels.com. It also has a single-use virtual card that can be used at retailers that aren't integrated into its network.
Standout benefits: Affirm charges no fees and offers both a pay-in-four and a monthly payment plan.Affirm reports loan data to credit agencies, which can be helpful if you're trying to build your credit.
Affirm
Interest rate
0% to 36%
Credit limit
$50 and up to $30,000
Loan term
30 days to 5 years
Fees
No late fees
Available merchants
Accepted at more than 358,000 merchants, including Amazon, Expedia, eBay, Walmart and Target.
Pros
- No late fees
- Widespread acceptance
Cons
- Reports information to credit bureaus
- No way to reschedule payments
- Some loans come with interest
Best for bad credit: Zip
Who's this for? Zip doesn't perform any credit checks before approving customers for a loan, so it's the right option if you have a bumpy credit history.
Standout benefits: If you're one day late for payment or have a delayed paycheck, Zip may move payment due dates for free if you request more time.
Zip
Interest rate
0%
Credit limit
Typically between $35 and $1,500, but varies by retailer.
Loan terms
Four payments over six weeks
Monthly payment plan?
Yes, 3 to 24 months for online purchases of $49 or more.
Fees
$4 fee on all purchases between $35 and $99.99, $5 for purchases from $100 to $199.99 and $6 for purchases $200 and above. $7 late fee for each missed payment.
Available merchants
Zip is connected with over 82,000 merchants globally, including Target, Best Buy, Apple, Zara and Nordstrom.
Pros
- If you're one day late or have a delayed paycheck, Zip may move your payment due date.
Cons
- There's a minimum $4 fee for each loan
- $7 late fee
- Only has one short-term payment plan
Best for rescheduling a payment: Sezzle
Who's this for? Have a hiccup in your finances? Sezzle allows customers to reschedule one payment per purchase free of charge.
Standout benefits: The long-term financing option allows consumers to finance purchases of up to $40,000 over up to 60 months.
Sezzle
Interest rates
0%
Credit limit
$2,500 per purchase
Loan terms
Four installments over six weeks.
Monthly payment plan?
Yes, from 3 to 48 months for purchases up to $15,000, with APRs between 0% and 34.99%.Â
Fees
$10 fee for failed payment, $5 for rescheduled payment after first one.
Available merchants
Sezzle has 41,800 active merchants, including Target and GameStop.
Pros
- Can reschedule one payment per order for free
- Monthly option can finance purchases up to $15,000
- Option to report to credit bureaus and improve credit
Cons
- $10 charge if you fail to make a payment
- More limited availability
- Only offers one short-term option
Does buy now, pay later affect your credit score?
Traditional forms of financing, like credit cards and personal loans, appear on your credit reports and are factored into your credit score. The picture with BNPL is a little fuzzier.
FICOÂ announced it would incorporate BNPL information in credit scores in the fall of 2025. However, some top providers, such as Klarna and Afterpay, said they won't send data to credit bureaus for consideration.
Affirm has been sending loan data to Experian, Equifax and TransUnion and is working with FICO to develop credit score models that include its BNPL data. But it's unclear whether banks and other lenders will use that model when assessing a customer's creditworthiness.
Alternatives to buy now, pay later
Though consumers are increasingly turning to BNPL loans, they're not the only option for short-term financing.
0% interest credit cards
0% APR credit cards allow you to make purchases without interest for up to 21 months and come with rewards BNPL loans don't, from cash back to points to travel insurance protections.
The Citi Simplicity Card has 0% intro APR on purchases for 12 months from the date of account opening (and on balance transfers for 21 months). The variable APR is 18.24% to 28.99% after that, based on your creditworthiness. Balance transfers must be completed within four months of account opening.
The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers.
Some card companies also offer BNPL-like options, such as Plan It® from American Express and Chase Pay Over Time.
Personal loans
Lenders approve small personal loans for borrowers with all credit types, with repayment terms of 12 to 60 months. That's longer than you have with BNPL providers and typically at a much lower interest rate.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
 6.5% - 35.99%
$1,000 to $75,000
9.95% to 35.99%
$2,000 to $35,000
Should you use buy now, pay later?
BNPL can be a helpful way to break larger payments into more manageable increments without the risk of being hit with enormous interest rates.
But that same convenience can make them a risky proposition if you're not confident you can make timely payments. BNPL loans can cloud your idea of your budget, or tempt you to take out multiple short-term loans at once.
Lending Tree found that 23% of BNPL users had three or more loans active at one time and 41% paid one of their BNPL bills late.
In addition, returning items bought via BNPL can be difficult, so make sure you're certain about your purchases.
Pros and cons of buy now, pay later
There are advantages and drawbacks to consider before using BNPL.
Pros
- Smaller payments that are often interest-free
- Quick approval process
- Doesn't require a high credit score
Cons
- Can encourage overspending
- May come with late fees
- Returns and refunds can be more complicated
Buy now, pay later FAQs
What is buy now, pay later?
Buy now, pay later (BNPL) loans are short-term financing that let you split a purchase into smaller, equal installments. The most common term is four payments over six weeks, with the first payment due at checkout.
Does buy now, pay later affect my credit?
It may. FICO will start including BNPL in credit scores in late 2025. But several BNPL companies, including Klarna and Afterpay, say they won't be sending loan data to the major credit bureaus for consideration.
Do I have to make a down payment with a BNPL loan?
Yes, when you choose a BNPL loan, your first payment is due at checkout.
How do buy now, pay later companies make money?
BNPL providers primarily make money off of fees from retailers. Stores and sites that accept BNPL must pay a fee for each transaction. In addition, some BNPL charge late fees and some longer-term loans may have interest charges.
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Our methodology
CNBC Select looked at 15 of the top buy now pay later companies to fine the best providers. We narrowed our selections by focusing on the following features:
APR: We weighed providers more heavily that did not charge interest.
Credit limit: We considered both the minimum and maxium loan amounts available from each BNPL provider.
Terms: Providers that had more than one term option we weighed more heavily, including those with monthly payment terms.
Fees: We considered whether a BNPL app charged fees for takin out a loan or for late or rescheduled payments.
Credit checks: We only considered BNPL providers that perform soft inquiries that won't impact your credit score.
Available merchants: We considered how many merchants a provider had in its network and if consumers could shop at merchants not partnered with the provider.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on those criteria, our picks for the best BNPL apps are:
Best for large purchases: Klarna
Best for small purchases: Afterpay
Best for online shopping: PayPal Pay in 4
Best for widespread acceptability: Affirm
Best for bad credit: Zip
Best for rescheduling a payment: Sezzle
