Log out
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.
What is Sezzle and How Does it Work?
Sezzle is a buy now, pay later app that offers consumers the best of both worlds – you can make everyday purchases and pay over time all while building credit. The service is quite flexible as you can qualify for a generous credit limit of up to $2,500, make four interest-free payments over six weeks, and reschedule one payment per purchase free of charge. You can reschedule subsequent payments but a fee may apply. To use Sezzle all you have to do is shop at a retail partner (Sezzle has over 4,000 partners) in-store or online. When you’re ready to make a purchase, just select Sezzle at checkout and you’re good to go.
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
Buy now and pay later with 0% interest!
Shop the brands you love, split up the payments, and build credit.
Love Sezzle
“Great app! Love paying for things in installment plans, it helps me buy things I need while staying in budget still.” TonyWhat is Perpay and How Does it Work?
Also, an interest-free buy now, pay later option, Perpay 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 improve your credit. On average, users see an increase of 39 points over 6 months. Unlike Sezzle, Perpay evaluates your income to set a spending limit (can initially be as high as $1,000) and offers a payment plan that can extend up to eight months. Perpay differs from many BNPL apps in that installments are automatically deducted from your paycheck – the money never hits your bank account – making it easier to manage your payments. This means you’ll never miss a due date with Perpay but can be a problem if you need that cash on hand.
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
Buy what you want now, pay later!
Join Perpay and get a $1,000 spending limit. No credit check, no interest, and no fees!
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 DucrepinMajor 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.
New
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 conduct 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.
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 long repayment periods. If you have a hard time managing due dates, then Perpay can be the better choice since the payments are taken directly from your direct deposit. Conversely, if you want the money in your bank account or don’t get direct deposit, then Sezzle is the one for you. Ultimately, the better choice is the one that aligns with your budget, spending patterns, and the types of purchases you’re planning to make.
Think Perpay’s the perfect app for you?
Final Thoughts
Both Sezzle and Perpay can help alleviate financial stress when you don’t have the funds but need to make a large purchase. Neither charge interest or fees nor do they conduct a credit check. In fact, both can help build your credit. They can be a good option when credit cards are hard to get or if you want to avoid high-interest rates and annual fees. Give them a try. See which one you prefer and which best suits your needs.
