Buy now, pay later (BNPL) loans allow consumers to make payments in small installments, usually over several weeks. Unlike credit cards, these short-term installment plans don't require great credit and usually don't charge interest.
Consumers are increasingly flocking to BNPL to finance everything from appliances to vacations. More than half of Americans (51%) have used short-term installment plans for online purchases, according to a April 2026 Gallup poll, including 10% who report relying on BNPL frequently.
With so many buy now, pay later options, which are the best? CNBC Select looked at rates, repayment options, late fees, participating merchants and more to find out. 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 BNPL for a big-ticket item.
Standout benefits: Users can make four interest-free payments every two weeks, one payment within 30 days or monthly payments for six 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
- Accepted at nearly 800,000 merchants, including Amazon, Best Buy, Walmart and Target
- Splits purchases into four interest-free payments
- Pay-over-time plans available up to 24 months for larger purchases
Cons
- Late fees apply, though capped at $7
- Monthly installment plans may charge interest
- No option to reschedule payments once scheduled
- Credit limit starts at $100
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 per-loan limit is also among the most generous we've seen and is available with zero interest.
Standout benefits: Afterpay doesn't charge interest and can be used at more than 15,000 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.
Available merchants
Afterpay is accepted at over 15,000 merchants nationwide, including Sephora, Ulta Beauty, Target and Best Buy.
Pros
- No interest on purchases under $400
- Accepted at over 15,000 merchants, including Sephora, Ulta Beauty, Target and Best Buy
- Available online and in stores
Cons
- Late fees can add up fast (up to $68 on larger purchases)
- Pay Monthly plan 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
- Works anywhere PayPal is accepted (millions of retailers, including Apple, Target and Home Depot)
- No hard credit check required
Cons
- Only works with PayPal-integrated merchants
- Limited to online purchases only
- 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 300,000 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 300,000 merchants, including Amazon, Expedia, eBay, Walmart and Target.
Pros
- No late fees
- Accepted at more than 300,000 merchants, including Amazon, Walmart and Target
- Virtual card lets you shop at retailers outside Affirm’s network
Cons
- Some payment plans charge interest up to 36%
- Reports loan activity to credit bureaus, which can affect your credit score
- No option to reschedule payments
Best for bad credit: Zip
Who's this for? Zip doesn't run a hard credit check before approving customers, so it's a good option if you have a bumpy credit history.
Standout benefits: If you need more time, you can move your payment due date back as much as seven days, up to 24 hours before the payment is due. The first payment date change in any calendar month is free and additional changes cost $2 each.
Zip
Interest rate
Varies by purchase and payment option. See your loan disclosure before applying.
Credit limit
No fixed credit limit. Estimated spending power varies and each purchase is reviewed for approval.
Loan terms
Pay in 2: Two payments over two weeks. Pay in 4: Four payments over six weeks. Pay in 8: Eight payments over 14 weeks**
Monthly payment plan?
Other installment options may be available at checkout. Not all customers qualify for every option.
Fees
Origination fee: $0-$124, shown at checkout. Late payment fee: $7, subject to state law. Payment-date change: $2. Up to one free payment date change per customer, per month.
Available merchants
Eligible U.S. retailers. Zip Anywhere can be used where payment cards are accepted, subject to restrictions.
Pros
- Payment schedule and charges shown before approval
- Option to move your payment due date
Cons
- Origination, late, and payment-date-change fees may apply.
*A fee may apply for payment date changes
**For example, a $1,100 purchase could be split into 2 payments of $553.75, with the first payment due today ($7.50 origination fee, representing a 35.70% APR with total of payments $1,107.50) or a $400 payment could be split into 4 biweekly payments of $102, with the first payment due today ($8 origination fee, representing a 34.75% APR with total of payments $408). For a $400 purchase, you could make 8 payments of $52.37, with the first payment due today ($18.97 origination fee, representing a 34.99% APR with total of payments $418.97). Not all customers qualify for all repayment options. Different repayment options may result in different APRs for the same purchase amount. Origination fees are prepaid as a finance charge with the first payment. Actual fees vary by purchase amount (e.g., $0 - $124.00) and will be shown at checkout. Examples exclude taxes and shipping. Financing through Zip, issued by WebBank. Zip may be used only for U.S. purchases, and certain merchant, product, goods and service restrictions apply. All loans subject to credit approval.
*** Your Estimated Spending Power is a point-in-time estimate of how much you may be able to spend, is not guaranteed, and is impacted by a number of factors. Zip or WebBank may decrease your estimated spending power within its reasonable discretion, including where you have previously had an unpaid balance or have an amount past due. Your estimated spending power is not an open line of credit. Each transaction is separately reviewed for approval. For additional details, please see the terms and conditions.
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 $15,000.
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%.
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
- Free payment reschedule once per order; No penalty
- Long-term plans can finance purchases up to $15,000
- Option to report payments to credit bureaus to help build credit
Cons
- $10 charge for failed payments
- Smaller merchant network than competitors
- Only one short-term payment plan 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.
FICO announced it would incorporate BNPL information in credit scores in the fall of 2025. However, some top providers said they won't send data to credit bureaus.
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 18 months from the date of account opening (and on balance transfers for 18 months). The variable APR is 17.49% to 28.24% after that, based on your creditworthiness. Balance transfers must be completed within four months of account opening.
The Citi Simplicity® Card has amazing intro-APR offers and is particularly valuable for balance transfers due to its lower introductory fee.
- Long intro APR offers for balance transfers
- Low intro-fee for balance transfers
- No annual fee
- No rewards
- No welcome bonus
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 typically have with BNPL providers and 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.
6.20% - 35.99%
$1,000 to $75,000
9.95% to 35.99%
$2,000 to $35,000
Should I use buy now, pay later?
BNPL is a helpful way to break larger payments into more manageable installments without high 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.
In addition, returning items bought via BNPL can be difficult, so make sure you're certain about your purchases.
BNPL has advantages and drawbacks.
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
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?
BNPL may affect your credit. FICO started including BNPL in credit scores in late 2025. But several BNPL companies say they won't be sending loan data to the major credit bureaus.
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 BNPL companies make money?
Stores and sites that accept BNPL must pay a fee per transaction, and BNPL providers primarily earn revenue from those fees. Some BNPL companies charge late fees and attach interest charges to longer-term loans.
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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 the minimum and maximum loan amounts available from each BNPL provider.
- Terms: Providers that had more than one term option were given more weight, including those with monthly payment terms.
- Fees: We considered whether a BNPL app charged fees for taking out a loan or for late or rescheduled payments.
- Credit checks: We only considered BNPL providers that perform soft inquiries that don't impact the applicant's 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.
