Synchrony Pay Later gives you the power to make purchases today and pay them off over time in predictable equal payments.* Already have a Synchrony Pay Later loan?
Paying for purchases over time with “Buy Now, Pay Later” (BNPL) services like Affirm, Afterpay, and Klarna has become increasingly popular. These services allow you to split the cost of a purchase into multiple smaller payments over time. But can you use a credit card to pay off a BNPL account balance? Let’s take a look.
How Buy Now, Pay Later Services Work
BNPL services partner with retailers to offer payment plans at checkout. Instead of paying the full amount upfront, you can choose to split the purchase into 3 or 4 interest-free payments over 6 weeks or 2-3 months. The first payment is usually due at checkout or shortly after.
These plans don’t require a credit check or inquiry. All you need to provide is your name, address, date of birth, and other basic information. Approvals are instant.
BNPL services make money by charging merchants a transaction fee. They may also charge late fees if you miss a payment.
Can You Use a Credit Card to Pay Off BNPL Plans?
In most cases, no you cannot pay off a BNPL account balance with a credit card.
BNPL services like Affirm, Afterpay, Klarna, and PayPal Pay in 4 do not accept credit cards as a payment method. Here are the potential payment options for each
- Affirm: Bank account (ACH)
- Afterpay: Debit card, bank account
- Klarna: Debit card, bank account
- PayPal Pay in 4: PayPal balance, bank account
The reason boils down to credit card transaction fees Accepting credit card payments would cut into the BNPL company’s profits
However, there are a couple exceptions:
- PayPal Pay in 4: You can use a credit card for the initial payment and down payment if offered.
- Synchrony Pay: This BNPL service offered through Synchrony Bank accepts credit cards for the initial payment option.
In these cases, you can use a credit card for a portion of the total balance. But not the remaining monthly installment payments.
Should You Pay Off BNPL With a Credit Card?
Even in the rare cases where you can pay off part of a BNPL balance with a credit card, proceed with caution.
Here are some drawbacks to keep in mind:
1. Credit card transaction fees
You’ll incur a 2-3% fee charged by the credit card issuer. This can eat into any rewards you earn.
2. Potential impact on credit
Carrying a credit card balance solely to pay off another account could temporarily increase your credit utilization. This may cause a small drop in your credit scores.
Once the balance is paid off, your scores should rebound. But it’s something to consider.
3. Added complexity
Juggling payments across multiple accounts makes things more complicated. There’s more potential for missed payments, late fees, and headaches.
4. Temptation to overspend
Swiping a credit card makes it easier to overspend. Psychology shows people are more willing to part with plastic over hard-earned cash.
5. Debt snowball effect
Using one type of debt to pay off another can snowball into a dangerous debt cycle. This may do more harm than good long-term if you struggle with overspending.
However, there are some cases where using a credit card makes sense:
- You can pay off the credit card balance right away
- You’ll earn valuable rewards that offset the fees
- It helps consolidate multiple payments into one
Ultimately there’s no one-size-fits-all answer. Consider your financial situation carefully. Don’t take on credit card debt solely to pay off BNPL plans unless you can pay it off quickly.
Alternative Ways to Pay Off Buy Now, Pay Later Debt
If you can’t use a credit card, here are some other options to pay off your BNPL balance:
Use a debit card
BNPL services readily accept debit cards linked to checking accounts. The funds come directly out of your bank account.
Just be sure you have enough in your account to cover the payment. Otherwise, you may get hit with an overdraft fee.
Pay directly from your bank account
Another option is to pay directly from your checking or savings account using your account and routing number. This allows BNPL companies to withdraw the funds automatically via ACH transfer.
Some may let you pay by sending in a physical check. But electronic payments are more convenient.
Use cash
In a pinch, you may be able to use cash to make in-store payments at physical retailer locations that accept BNPL. This varies by merchant.
You can also use cash to purchase pre-paid debit cards. Then use the debit card number to make your payments online.
Take out a small personal loan
If you need help managing large BNPL payments, a personal installment loan can help consolidate high-interest debt into one predictable monthly payment.
Just be sure to compare interest rates. Personal loans often have lower rates than credit cards. But higher than BNPL plans (which are interest-free).
Use a credit counseling agency
Non-profit credit counseling provides free budgeting and debt management services. They can help negotiate lower payments and interest rates on your behalf.
Key Takeaways
- In most cases, you cannot directly pay off BNPL plans with a credit card due to merchant transaction fees. Debit cards or ACH bank transfers are usually required.
- If given the option, carefully weigh the pros and cons before using a credit card. Don’t accrue new credit card debt solely to pay off BNPL plans.
- Alternative options include using a debit card, paying directly from your bank account, taking out a small personal loan, or using a credit counseling agency to help manage payments.
- Overall, BNPL can be a convenient financing option if used responsibly. But relying on other forms of debt to pay off plans can lead to a dangerous debt cycle. Proceed with caution.
How it works 1
Apply for Synchrony Pay Later with participating retailers and providers. 2
Buy now and pay later on the purchases that matter to you. 3
We make it easy. Log into your account and make payments over time. Make a payment
A different way to pay
When you choose Synchrony Pay Later, youll enjoy:
- Purchasing power with more financing options
- Payment flexibility for purchases – from everyday necessities to high-ticket items
- Predictable payments to make budgeting easier
- Streamlined application process with immediate credit decision
Paying A Credit Card Bill (I Wish I Knew THIS)
FAQ
Can you use a credit card to pay buy now, pay later?
You can pay off your buy now, pay later account with a credit card. But if you do that, you might end up paying more on this debt or making bad credit moves.
Can I pay credit card bill later?
The late fee would be charged by the bank in your next credit card bill. As of late, the Reserve Bank of India (RBI) told banks that they can only charge a late fee if the payment is more than three days past the due date.
Can you set up bill pay with a credit card?
Credit cards can usually be used to pay for things like utilities, insurance, phone service, internet, cable, and sometimes rent or mortgage payments. But there may be processing fees if you use a credit card.
Can I pay with PayPal Credit?
If you pay for something online with PayPal Credit, you can get special financing for 6 months on purchases over $149 at millions of stores that accept PayPal. Subject to credit approval. If you do not pay for the item in full during the promotional period, interest will be added to your account from the date of purchase. Minimum Monthly Payments required. See terms.
How do I pay my bills through PayPal Credit?
You can also opt for automatic payments on fixed monthly bills. You can pay your bills with your PayPal Credit account in two ways: pay the full balance or pay off your entire PayPal Credit balance every month. – Pay minimum – Pay just the monthly minimum due on your credit account. – Partial payment – Pay any amount above the minimum.
How do I pay a bill online without affecting my credit score?
Break up your payments over weeks or months. Apply for Pay in 4 without impacting your credit score. Find PayPal Pay Later options at millions of online stores. Find out if you’re approved in seconds. Then pick the plan that works best for you. Do it securely in the app or online with the ease of autopay.
How do I get my bank to pay off my PayPal Credit?
Do this: Click Details to the right of the “PayPal Credit” heading. If you want your bank to pay off your PayPal Credit balance every month, Click Set up automatic payments on the left side of the page. Select a payment amount and method. Make a payment on mobile.
What if I don’t see PayPal Credit?
But just because you don’t see it doesn’t mean you can’t use the service—PayPal Credit will work as long as PayPal does. If you don’t see it on the first page of checkout, just choose PayPal as your payment method and then do the same thing on the next page.
Can I make a same day payment with pay as guest?
No. At the moment, Pay as Guest only lets you make one payment on each of your Synchrony credit card accounts on the same day. You’ll need to go back to the sign-in page and tap the button to start the process over and make a payment on another account after you’re done with the first one. Can I schedule a future payment using Pay as Guest?.
