Sezzle Review: An Updated Take on Buy Now, Pay Later

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Key takeaways

Sezzle is a buy now, pay later service that allows consumers to make purchases immediately and spread the cost over four interest-free payments.
Consumers can shop at over 40,000 retailers in-person or online and split payments with no interest, no mandatory fees, and no credit check.
Sezzle Up allows users to improve their credit scores by reporting their payment history to credit bureaus.

Sezzle is a buy now, pay later app that lets you spread out the cost of large purchases without charging any interest. Need a new laptop for work or want the latest iPhone? Sezzle can make expensive purchases accessible and help build your credit at the same time. Shop online or in-store with the buy now, pay later app and split your payments into four or more manageable ones. There’s no credit check to apply and no fees if you pay on time. Let’s dive more into this financial service to learn if Sezzle is the payment method you’ve been waiting for.

What is Sezzle?

Sezzle is a buy now, pay later (BNPL) app that lets you purchase products immediately and pay for them over time. It is a viable alternative to a credit card. There is no hard credit check and no interest making it more accessible and financially friendly. The BNPL app was founded in 2017 with the mission to help people achieve financial freedom, take control of their finances, and build their financial future. Since then, it has grown to over 8 million users with over 40,000 retail partners.

How does Sezzle work?

1. Download the Sezzle app

Getting started with Sezzle is easy. Simply download the app – available on both Android and iOS devices – and create an account. It only takes a few minutes to sign up. You will need to enter your full name, phone number, email address, date of birth, and a PIN. You will also have to agree to Sezzle’s user agreement allowing the company to conduct a soft credit check. A soft credit check will not hurt your credit score or show up on your credit report.

To be eligible to use Sezzle you must:

Be 18 years or older
Have a U.S. phone number that can receive texts
Have an active email address
Be a resident of the United States or its territories
Have a non-prepaid payment method available: bank account, debit or credit card

Sezzle will give you a spending limit which, like your credit limit, is the amount you’re allowed to spend. When you first sign up you’ll typically have a smaller limit between $50-$200. The BNPL app says it’ll increase the limit over time as you build a history of on-time payments for smaller orders. Sezzle doesn’t state what the maximum limit is but some vendors put it at $2,500.

2. Shopping with Sezzle

Sezzle partners with over 40,000 retailers including Amazon, Target, Ulta, Walmart, and Apple. You can easily shop at any of these stores both online and in-store. If you’re shopping through the app, select ‘Pay with Sezzle’ at checkout. If you want to shop in-store, first activate your Sezzle virtual card. Then add it to your Apple or Google wallet. When you go to pay, tap to pay with your Sezzle virtual card and you’re all set.

THE go to payment method!

“Sezzle has empowered me in many ways, Sezzle’s plans help me keep my payments organized, I prefer using Sezzle over credit cards, the process is transparent, and I feel that I can pay my balance much faster than if I were to use other payment methods. I am grateful for this opportunity, I feel Sezzle’s process effortlessly gets me to be responsible with my payments and budgets, and I love the flexibility and transparency. Thank you!” Mike P

3. Managing your purchases

When you make a purchase with Sezzle you can choose how many installments you want to break it up into. Generally, you’ll pay in four installments over six weeks. If you want to pay your purchase off faster, you can choose two installments over two weeks. Or you can decide to pay monthly and split the payments over 3-48 months (this is subject to approval by a third-party lender). Any way you go, you have to make the first payment at the time of purchase and there are no interest charges.

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Where Sezzle stands out

1. Zero-interest loans

Sezzle’s biggest perk is its zero-interest financing. Unlike a credit card or traditional loan, the BNPL app will never charge you interest, though it does come with potential fees. Zero-interest financing is appealing if you’re looking for a revolving line of credit and want to avoid credit cards with high interest rates.

2. Free payment rescheduling

If you don’t like your assigned due date you can change it. Perhaps your financial circumstances changed or you want your payment schedule to line up with your paycheck. No matter why, Sezzle lets you reschedule your due date up to three times. The first time is free, the second and third times incur a fee of $5 to $7.50 depending on the state you live in.

3. Credit reporting

Unlike many buy now, pay later services, Sezzle lets you opt-in to its credit reporting service called Sezzle Up. It reports your payment history on any financed product to all three major credit bureaus. Credit reporting can help you improve your credit score if you make on-time payments and keep your credit utilization below 30%. Payments that are over 30 days late will hurt your credit score. Sezzle Up is reported as a revolving line of credit – like a credit card – and so impacts your payment history, average credit account age, total amounts owed, and credit utilization. It is a great way to improve your credit without taking out a high-interest credit card with fees or a personal loan. Sezzle states that users see an average credit score increase of 20 points in the first four months of reporting.

4. Won’t send borrowers to collections

In a consumer-friendly move, Sezzle does not send borrowers to collections, reducing the stress and potential credit damage from missed payments.

Awesome App

“Sezzle is an amazing way to pay for things you may not otherwise be able to get. Being able to split up your payments allows a person to make a more expensive purchase without having to break the bank to do so. Now they have added the Sezzle up option so that you can have all your on time payments reported to all 3 credit bureaus. Keep up the good work Sezzle!!!” Ashley Pike

Where Sezzle falls short

1. Account activation fee

Sezzle will charge your funding source automatically at each payment due date. If your payment is declined, the app gives you 48 hours to rectify the situation. If you do not, it will deactivate your account. To reactivate your account and continue to use Sezzle, you must pay a fee of $10-$15.

2. Card payment fee

The BNPL app encourages you to connect it to your bank account and make payments from there. If you choose to use a credit card or debit card it will charge you a $5 fee, which can add up over time.

Who is Sezzle best for?

Sezzle is a good option if you already shop at stores that offer it as a payment method, want to improve your credit score, and can afford to make all the payments in six weeks. The BNPL app can be a cheaper option than most credit cards since it comes with zero interest and no fees (if you make all your payments in time and use your bank account). It also only does a soft credit check and has more lenient credit requirements than most lenders so you’re more likely to be approved even with bad credit.

Who Sezzle isn’t right for?

If you’re prone to impulse buying or struggle with managing multiple payment schedules you might find Sezzle to be more of a hindrance than a help. You have to pay your balances on time or you’ll be charged fees. If you use a credit or debit card to pay your balance, you’ll be charged fees and then may be subject to interest charges from your credit card. Sezzle only works at partner retailers, and while there are a lot of them, they may not work at a specific store you have in mind. Other BNPL services can be used at a larger variety of stores. Lastly, while the app provides a convenient, low-cost payment option, it is still a form of debt and so should only be used for essential purchases.

Is Sezzle worth it?

Sezzle’s value depends on your individual financial habits and needs. The BNPL app is free to use and you don’t have to undergo a hard credit check when you apply. It offers an interest-free payment plan and its credit-building potential is attractive. If you have bad credit and/or don’t want to pay a high-interest rate, it’s a great alternative to a credit card. The trick is, you have to pay on time or else you’ll be charged fees. The other downside of BNPL apps is they can trick you into overspending since you’re not paying the full amount at the time of purchase. Whenever you use a BNPL app, be sure you have a payment plan in place and stick to it.

Good Company with a Positive Experience

“I’m so happy, I discovered Sezzle, it has given me a chance to rebuild some credit, and to purchase items via payments that I would not have been able to do otherwise. They are very flexible and if I need to change a payment at any point, it is easy to do through their app.” Spicy Chef

Sezzle pros and cons

Pros

Interest-free payments: Sezzle allows users to pay in four interest-free installments over six weeks, making it a cost-effective option compared to credit cards that charge interest on balances.
Instant approval: Sezzle offers instant approval decisions, allowing consumers to make purchases immediately without the lengthy approval process typically associated with traditional credit.
No hard inquiry: Sezzle performs a soft credit check that does not impact the user’s credit score, making it accessible to those with varying credit histories.
Manageable payments: By breaking down payments into smaller amounts, Sezzle can help consumers manage their cash flow and budget more effectively.
Wide acceptance: Sezzle is accepted at a growing number of online and in-store retailers, providing users with a wide range of shopping options.
Payment rescheduling: Users can reschedule one payment per order for free, offering flexibility in case of unforeseen circumstances.

Cons

Potential penalties: If a payment is missed or rescheduled multiple times, Sezzle charges late fees, which can add up and negate the benefits of the interest-free plan.
Limited availability: Not all merchants accept Sezzle, which limits where consumers can use the service. This can be inconvenient for those looking to use Sezzle for a wide range of purchases.
Short repayment period: The repayment period is relatively short, with four installments over six weeks. This may not be suitable for consumers needing longer-term financing options.
Encourages impulse buying: The ease of splitting payments can encourage impulse buying, potentially leading to overspending and financial strain.

Sezzle offers a convenient and cost-effective way for consumers to manage their purchases without incurring interest. However, users should be aware of the potential for late fees, the short repayment period, and the impact on their spending habits. It’s important to use Sezzle responsibly and ensure that the installment payments fit within one’s budget.

Bottom line

Sezzle is a good choice when you need to buy a product but just can’t afford to pay for it in full at once. Its flexible repayment plans make it easier for anyone to make big purchases without suffering a financial hit. You avoid high-interest credit cards and can build your credit without any fees and zero interest. The caveat is, don’t overspend and be disciplined in paying your installments. Other than that, Sezzle is a user-friendly buy now, pay later app with credit-building potential.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

3. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC

6. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions.

7. You may earn Points in connection with your everyday spending and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. The Current Points program is not available to Teen Account holders. See Current Points Terms and Conditions.

8. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

9. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions.

10. Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC, and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges Current does not charge an additional trading fee. Cryptocurrency transactions are a form of investment, and all investments are subject to investment risks, including possible loss of the principal amount invested. Cryptocurrency is not insured by the FDIC or any other government-backed or third-party insurance. Your purchase of cryptocurrency is not a deposit or other obligation of, or guaranteed by, Choice Financial Group or Cross River Bank. The cryptocurrency assets in your Zero Hash account are not held at Current, Choice Financial Group, or Cross River Bank. Current, Choice Financial Group, and Cross River Bank are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Current, Choice, nor Cross River Bank is involved in the purchase, sale, exchange of fiat funds for cryptocurrency, or custody of the cryptocurrencies. Terms and Conditions apply (platform and user agreements). Crypto on Current is not currently available in HI. Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. This does not constitute investment advice.

11. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

12. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

13. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

14. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

15. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

16. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

17. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

18. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

19. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

20. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

21. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

22. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

23. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

24. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

25. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

26. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

27. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

28. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

29. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

30. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

31. Tipping or not tipping has no impact on your eligibility for SpotMe®.

32. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

33. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

34. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

35. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

36. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

37. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

Sezzle Review: An Updated Take on Buy Now, Pay Later

Key takeaways

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What is Sezzle?