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Sezzle vs Perpay: Which is the Better Option?

Buy now pay later apps let you purchase an item with a small deposit and then pay the rest back in installments.

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Updated January 16, 2024
Written by Rachel Alulis
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Key takeaways

  • Buy now, pay later apps like Perpay and Sezzle let consumers make purchases and pay over time. They come with no interest, no fees, and no credit check.
  • Sezzle offers flexible payments, low fees, and a large number of retail partners. Perpay has its own marketplace, extended payment plans, and higher spending limits.
  • Both Sezzle and Perpay aid customers in building credit by reporting on time payments to the credit bureaus.

Buy now pay later (BNPL) apps are the latest way to pay. These apps let you purchase an item with a small deposit and then pay the rest back in installments. They are affordable, convenient, and usually come with no interest or fees. With so many apps out there it can be hard to decide which is right for you. Two popular ones are Sezzle and Perpay. They not only let you buy now and pay later with no interest but they can also improve your credit. So which one should you choose?

In this post, we’ll break down our two favorite buy now pay later apps and help you decide which one fits both your wallet and lifestyle.

Jump to:

What is Sezzle and how does it work?


Sezzle is a buy now, pay later app that offers consumers the best of both worlds – the ability to make everyday purchases and pay over time, all while building credit. The service is highly flexible, allowing you to qualify for a generous credit limit of up to $2,500. With Sezzle, you can make four interest-free payments over six weeks, making it easier to manage your finances without incurring extra costs. Additionally, Sezzle provides the convenience of rescheduling one payment per purchase free of charge, with the option to reschedule subsequent payments for a small fee.

Using Sezzle is straightforward. You simply shop at one of their over 4,000 retail partners, whether in-store or online. When you’re ready to make a purchase, you select Sezzle at checkout, and you’re good to go. This ease of use, combined with the ability to spread out payments, makes Sezzle an attractive option for those looking to avoid the pitfalls of traditional credit cards, such as high-interest rates and fees. Moreover, Sezzle reports your payment history to the major credit bureaus, helping to build your credit score over time. Whether you need to make everyday purchases or larger buys, Sezzle offers a convenient and financially responsible solution.

Pros: 

  • No interest charges
  • No hard credit check
  • Clear and simple payment plan
  • Reschedule your first payment for free
  • Can be used online or in-person at more than 4,000 retail partners
  • Access to exclusive deals and promotions
  • Credit limit can go up to $2,500
  • Sezzle Up reports to all three major credit bureaus
  • Credit scores increase by 20 points in the first 4 months of reporting on average

Cons: 

  • Low initial credit limit of $50-$200
  • Shopping is limited to partner retailers
  • $10 to $15 reactivation fee for disabled accounts
  • Rescheduled payment fee up to $7.50
  • Convenience fee if you pay off your installment balances with a debit or credit card

Love Sezzle

“Great app! Love paying for things in installment plans, it helps me buy things I need while staying in budget still.” Tony

What is Perpay and how does it work?

Perpay, an interest-free buy now, pay later option, focuses on larger purchases with a more flexible repayment period and an emphasis on credit building. The app reports your payment history to the major credit bureaus, helping to improve your credit score. On average, users see an increase of 39 points over six months. Unlike Sezzle, Perpay evaluates your income to set a spending limit, which can initially be as high as $1,000, and offers a payment plan that can extend up to eight months. This extended repayment period is ideal for those looking to finance larger purchases without the burden of immediate payment.

Perpay differs from many BNPL apps in that installments are automatically deducted from your paycheck, meaning the money never hits your bank account. This automatic deduction system ensures that you’ll never miss a due date, making it easier to manage your payments and avoid late fees. However, this can be a drawback if you need that cash on hand for other expenses. For individuals who struggle with budgeting and managing due dates, Perpay provides a structured and reliable payment system. Despite this convenience, it’s essential to evaluate whether the automatic deductions align with your overall financial situation and cash flow needs.

Pros: 

  • No interest on purchases
  • No credit check – Consumers with bad credit may qualify
  • No fees for late or missed payments
  • You choose how many payments you want to make over time
  • Payments are deducted directly from your paycheck when it’s deposited in your account – you will never miss a payment
  • Wide range of products from top brands including Apple, KitchenAid, Coach, Dyson, LG, and Samsung
  • High initial credit limit
  • Spending limit increases over time
  • Perpay+ reports your payment history to all three credit bureaus
  • Credit score increases by 39 points in 6 months on average

Cons: 

  • Purchases must be made through Perpay’s marketplace
  • High purchase minimum – most items are expensive
  • Items only ship after the first payment is made
  • Must pay with direct deposit from your paycheck
  • Defaulting on payments can hurt your credit score
  • Gig workers, independent contractors, self-employed, and people not paid by direct deposit are not eligible at this time

5 Stars!!!

“I truly love making purchases on Perpay. I have been shopping on the Perpay App for 3+ years and I have purchased everything from Christmas gifts, graduation presents, to personal and business items. They have a great selection of brands and items to chose from and they never disappoint. Plus the convenience of auto-pay set up through your payroll is a great benefit. One of the best and convenient shopping Apps around 🤩” Shaun Ducrepin

Major differences between Sezzle and Perpay

Repayment terms

Sezzle’s repayment terms are shorter and stricter than Perpay’s. They ask you to pay in four within six weeks or two over two weeks. Some merchants do let you split payments over 3-48 months but this is subject to approval by a third-party lender. Perpay simply lets you choose how many installments you want to make, up to eight months.

Eligibility

Any U.S. resident over 18 who has a U.S. phone number and non-prepaid payment method is eligible to use Sezzle. Perpay is a bit different. It requires that you are employed, receive direct deposits, have at least three months of income, no active bankruptcies, and no debt.

Spending limits

Perpay sets limits based on your income, whereas Sezzle has a standard procedure. This means that your initial spending limit may be higher with Perpay than with Sezzle which typically sets low initial spending limits. Both services will increase your spending limit as you build a history of on time payments.

Payment methods

Perpay takes your payment out of your direct deposit before it even hits the bank. This way you never have to worry about missing a due date. Sezzle, on the other hand, is more conventional. You can pay your installments through bank transfers, or card – either debit or credit. If you choose to pay by card, you will be charged a convenience fee.

Fees

Perpay does not charge any fees. Sezzle does charge a few fees, all of which are avoidable.

Retailer network

Sezzle has a broader range of merchant partners than Perpay. You can shop online or in-store at any of its over 4,000 retail partners. With Perpay, you’re limited to its online marketplace.

Interested in Sezzle?

Learn more about Sezzle and see if it’s the BNPL app for you!

How are Sezzle and Perpay similar?

Despite their differences, the two buy now, pay later apps share a lot of similarities. Both offer interest-free payment plans, making them attractive alternatives to traditional credit cards. Neither conducts a credit check, so they’re easier to qualify for if you have bad credit. These two buy now, pay later apps distinguish themselves from other BNPL apps by reporting your payment history to all three major credit bureaus. This can help you improve your credit score over time.

Building credit with buy now, pay later apps

By consistently making on-time payments, users can demonstrate financial responsibility, which is reflected in their credit reports. This positive payment history is crucial for improving credit scores, as it shows lenders that you are capable of managing credit responsibly. Unlike many other BNPL services that do not report to credit bureaus, these apps offer a unique advantage by helping users build a credit history. Over time, this can lead to better creditworthiness and the potential to qualify for more favorable terms on loans and credit cards. Thus, these apps are not only convenient for immediate purchases but also beneficial for long-term financial health.

Which is better?


Deciding whether Perpay or Sezzle is the better option largely depends on your financial habits and shopping needs. If you tend to make smaller, more frequent purchases and prefer a shorter payback period, Sezzle is likely a better fit with its six-week repayment plan and a wide array of retail partners. On the other hand, Perpay is more suited for those looking to finance larger purchases over a longer period, thanks to its high spending limits and extended repayment periods.

Additionally, Perpay’s payments are taken directly from your direct deposit, which can be advantageous if you have difficulty managing due dates. This automatic withdrawal system ensures timely payments and reduces the risk of late fees. Conversely, if you prefer to have more control over your finances and want the money to stay in your bank account until you decide to make a payment, Sezzle might be the better option. Sezzle also caters to those who do not receive direct deposits, providing greater flexibility in payment methods.

Ultimately, the better choice is the one that aligns with your budget, spending patterns, and the types of purchases you’re planning to make. Both apps offer unique benefits, so evaluating your specific financial situation is key to making the best decision.

Think Perpay’s the perfect app for you?

Read our in-depth review of Perpay to find out!

Bottom line

Both Sezzle and Perpay can help alleviate financial stress when you don’t have the funds but need to make a large purchase. Neither charges interest or fees, and they do not conduct a credit check, making them accessible even to those with poor credit. In fact, both can help build your credit by reporting your payment history to the major credit bureaus. This positive reporting can improve your credit score over time, making these apps a viable alternative to traditional credit cards.

They are particularly beneficial when credit cards are hard to get or if you want to avoid high-interest rates and annual fees associated with them. By offering interest-free payment plans, Sezzle and Perpay allow you to manage your finances more effectively without the burden of accruing debt.

It’s worth trying both to see which one you prefer and which best suits your needs. Whether you need to make smaller, frequent purchases with Sezzle or finance larger items over a longer period with Perpay, these apps provide flexibility and ease. Ultimately, the better option is the one that aligns with your financial habits and shopping preferences, giving you control over your spending and payment schedules.

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About the author

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.

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