![]() ![]() Breaking flight costs into four separate payments can make your travel seem less expensive than it actually is and tempt you to book a more expensive ticket than your budget can handle. Of course, as your spending limit with Afterpay increases, you face a different risk: being tempted to spend more on vacation travel than you can actually afford. You might be able to book a flight to New York or Los Angeles, but that dream vacation to New Zealand or the United Kingdom is probably still out of reach. Of course, plane tickets can be a lot pricier than that. First-time users have a $600 spending limit imposed, which gradually increases as you use the app responsibly. ![]() Websites like Alternative Airlines accept Afterpay, but many airlines don’t work with Afterpay, which can limit your flight options.Īfterpay’s spending limits can also be a factor. If you’re in a financial tight spot, this could result in you paying late fees and credit card interest.Īnother drawback of Afterpay is that you can’t book flights with anyone you want. ![]() If you link Afterpay to your credit card, you’ll accumulate interest on whatever balance you don’t pay off at the end of your statement. You’ll ultimately end up paying more for your trip than if you had just paid the full amount upfront.Īnd even though Afterpay doesn’t charge interest fees on its loans, you can still rack up additional interest on your credit card bill. While this may not seem like much, those late fees can add up quicker than you might expect, particularly if you get in a habit of missing payments. Total late fees for a transaction can reach 25% of the total cost of your purchase, significantly increasing your total spending on a purchase. Afterpay charges late fees of up to $8 when you miss a payment. What are the drawbacks of using Afterpay to book flights?įirst and foremost, it’s important to understand that just because Afterpay doesn’t charge interest, that doesn’t mean there aren’t financial risks to worry about. Of course, using Afterpay for flights does have some disadvantages as well. Plus, late payments aren’t reported to credit bureaus, so missed payments won’t hurt your credit score. As long as you make your payments on time, you don’t pay any fees or interest, whereas interest on a personal loan accrues from the time the funds are disbursed. This improves the accessibility of the payment app, even for individuals with low credit scores.Ĭompared to other financing options (like taking out a personal loan for your vacation), Afterpay can be cheaper and lower risk. The four installment payments are relatively easy to plan for, and for many, spreading out a travel purchase in four smaller payments can make it more manageable.Īfterpay does not run a credit check to determine eligibility for its services. ![]() You don’t pay any interest on your payment plan. The following are some of the potential advantages of using Afterpay for vacations and other major purchases: What are the advantages of Afterpay?Īfterpay, as well as competing buy now pay later programs like Klarna and Affirm, market themselves as easier, more affordable ways to finance expensive purchases. Your final payment will be due six weeks after you booked your flight. So based on the above example, two weeks after your initial down payment, you’ll be charged another $100. The remaining balance is split across three additional installment payments, which are charged to your linked payment method every two weeks. So, if you buy airfare that is worth $400, your first payment of $100 would be due upfront when you check out. This is typically worth 1/4 of the total cost of your purchase. If you’ve never used this buy now pay later app before, you will need to register with Afterpay and set up your payment method (such as a debit card or credit card) before you can complete your booking.įor travel and all other purchases, Afterpay requires that you make an initial down payment at the time of purchase. When you go to checkout, you select Afterpay from the available payment options. How does using Afterpay for flights work?Īfterpay is made available at checkout with select travel and entertainment retailers. In this article, we’ll take a closer look at how using Afterpay for flights works and why you’re typically better off avoiding book now pay later programs when planning your next vacation. Rather than simply putting their vacation travel on their credit card, some people use Afterpay for flights and other expenses to split their travel purchase into four installment payments.Īt first glance, the ability to make interest-free installment payments on your travel can seem like a great option. Of course, like everything else in life, it costs money to book flights. Whether you’re planning a weekend getaway or flying to Australia for a two-week trip, a vacation can provide some much-needed rest and relaxation. Sooner or later, we all need to take a vacation. ![]()
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