If you are on a tight budget, sometimes you might have an expense that you cannot afford. Although it can be tempting to turn to a credit card, that high interest rate could eat away at your paycheck.
This is when a buy now pay later option can really come in handy, and Perpay might be the solution you’ve been looking for. The company offers the chance to purchase items now and pay later without any interest involved.
Here’s a closer look at Perpay to see if this company is a good fit for your spending needs.
Perpay offers a buy now pay later option with 0% interest. Although you’ll likely pay more for the item, you can make installment payments with each paycheck until the item is paid for.
- No-interest purchases
- No credit score required
- Automatic repayments
- Fast sign up process
- Extensive fees for returned items
- Marked up prices for items
- Late payment fee of $35
What is Perpay?
Perpay offers a relatively painless way to finance your purchases from many major brands. The Philadelphia-based FinTech company provides financing to over three million members across the United States.
According to Perpay, the platform’s goal is to help consumers access quality brands in a more budget-friendly way.
A few of these brands include:
- Micheal Kors
You can use the app to become a customer and purchase major brands in installments. If money is tight, this could be a great solution for you.
How Does Perpay Work?
The concept of buying an item now and paying later is not new. However, Perpay has created a system to make the process as smooth as possible for the buyer.
First, you’ll set up a Perpay account. After you provide your name and email, you’ll need to answer some questions about your financial situation.
Perpay will want information about:
- Your employer
- How much you get paid
- Your paycheck frequency
Once they have that information, Perpay will provide a spending limit for you.
Based on your limit, you can start shopping in the Perpay online store for the items you need. Perpay works with over 1,000 major retailers, so you’ll likely find what you are looking for.
After you find an item you want, Perpay will set up a small direct deposit from your paycheck.
Each time you receive a paycheck, Perpay will take an installment payment. The payments will continue for equal installments. The exact amount of your installment will vary based on the number of installments you choose.
In one example provided by Perpay, you could select an installment option between six to 14 payments. Although your exact options might vary, you can choose the right number of installments for your budget with the help of Perpay.
Your item will ship after Perpay receives your first payment.
Additionally, you can always choose to pay for the item early with a credit card or linked bank account.
How Much Does Perpay Cost
Perpay doesn’t charge its shoppers interest during the repayment period, but it does have a catch. It goes without saying that Perpay has to make money somehow.
The company purchases the items directly from the retailer. Then, as a Perpay customer, you’ll have to pay a marked-up price. Furthermore, there is a $35 fee associated with late payments.
If you decide to return an item, you’ll be responsible for the original shipping cost, a $10 return shipping fee and a 5% restocking fee.
Since online shoppers everywhere are likely to make a return at some point, this extensive return fee may add up quickly.
Finally, Perpay+ users pay $2 per month for the credit building service.
If you are curious about the top features Perpay offers, here’s how they stand out from the competition.
Customized Spending Limit
When you provide your income information to Perpay, the company will determine your spending limit. You can have a spending limit of up to $1,000.
It’s possible to find out what your spending limit is in less than a minute.
The spending limit is set with your income in mind. With that, you won’t be authorized to make purchases that you can’t repay.
If you prove that you can pay your installments on time, your spending limit may increase. That could allow you to buy even more items on this interest-free installment plan.
However, you should still run the numbers for yourself before purchasing through Perpay. Make sure that the cost will work for your budget and other financial goals.
More Installment Options
You’ve likely seen many different ‘buy now, pay later’ options. Although there are many out there, not all are created equally. Perpay sets itself apart from the crowd by offering more installment options.
Most other ‘buy now pay later’ platforms require payment in four installments. However, Perpay allows you to stretch out those installments over an extended period of time.
Based on an example provided by the company, you may be able to stretch out the purchase over 14 pays. Your unique financial details may change the length of your installment options.
This kind of flexibility for your budget is not something to overlook.
Easy Access To Thousands Of Brands With Marketplace
A tight budget can make it challenging to pay for an item without racking up interest charges on your credit card. Perpay makes it easy to avoid this dilemma.
Instead of forking over the entire amount immediately, you can pay for the item in equal installment payments.
Since these installments are tied to your paycheck, it will be easier to make payments on time without blowing your budget.
A few of the most popular brands on the app include:
- Micheal Kors
You can shop for items from over a thousand brands to find what you are looking for.
No one likes to pay interest on a purchase. You won’t have to with Perpay.
That said, you should keep in mind that items available through Perpay are likely a bit more expensive than buying directly from the retailer. That’s because Perpay has to make money somehow.
The company makes money by marking up the items before selling them to you.
Although no one ever wants to pay more for an item, you might save in the long term by avoiding the high interest rates typically attached to your credit card.
No Credit Check
A credit check could deny access for many users. Fortunately, Perpay doesn’t ask to see your credit history.
Instead, the company bases your spending limit on your income. You’ll need to earn at least $15,000 per year to qualify.
After you make your first payment, the items will generally ship immediately. Typically, the items will arrive within three to five business days of your first payment.
If you purchase a larger item, such as furniture or appliance, it will take between three to four weeks to arrive.
As an important note, larger items that require freight delivery cannot be purchased by residents in U.S. territories, Alaska, Hawaii and Puerto Rico.
Credit Building Options
Beyond the pay later aspect of Perpay, there is a credit building feature that could help to boost your score.
In fact, the company claims that it is able to help its users that qualify for Perpay+ increase their credit scores by an average of 39 points. That’s a significant increase.
The Perpay+ service costs $2 per month. If you are working to build your credit score, that could be a small expense worth paying for.
With Prepay+, the company will report your spending limit as a credit line to Experian, Equifax and TransUnion. Perpay will report your payment history to the credit bureaus as you make automatic installment payments.
Although you’ll need to make payments totaling at least $200 to qualify for Prepay+, it can be a useful option for those looking to build credit.
What Others Are Saying
Before you use Perpay, it can be helpful to know what other customers think of the service.
Better Business Bureau
Perpay earned an A+ rating from the Better Business Bureau. It received 3.12 out of 5 stars with 90 customer ratings.
Current customers had these things to say about the service:
“I’ve been a Perpay customer for over a year now and I am 100% satisfied! I have been able to purchase so many things, and the quality of the the merchandise is amazing!” – Gayle S
“Items are extremely overpriced and making returns is nearly impossible.” – Cassie G
The company earned 3.6 out of 5 stars from Trustpilot. Over 50 people reviewed the service, with over 50% of reviewers reporting an excellent experience.
These are a couple of reviews from current users:
“Very convenient way to buy big ticket items with affordable payments that are extremely easy to manage. They have a wonderful selection of merchandise!” – Connie Davis
“Unfortunately I have not received part of my order, nor have I heard from customer service.” – Ashley Burgman
In the Google Play Store, Perpay earned 3.9 out of 5 stars with over 3,200 reviews.
Here are a couple of reviews from customers:
“I have been a customer since 2019 and I absolutely love it. It’s a way for me to get items I need/want by paying over time, but interest free.” – Tenille Warren
“Extremely difficult to talk to staff that’s if they reply, I ordered a PS5 and 5 wks later nothing but issues.” – Jean Duchemin
With over 4,300 ratings, the Perpay reviews in the Apple App Store are the best at 4.7 out of 5 stars.
Here’s what some Perpay users had to say about the platform:
“I love, love LOVE having the option to purchase things on Perpay! It comes right out of my paycheck and with the payments broken down into an optional number of payments, I don’t even notice the money missing. Did I mention INTEREST FREE!” – paddlewhacker1982
“I have been a customer since 2018 without issues until last year. I have canceled many orders for birthdays etc because the order no longer get approved within a 1-2 days as they say.” – skylarsmom1309
If you are still trying to determine if Perpay is right for you, these frequently asked questions might be able to help.
Yes, Perpay is a legitimate company with an A+ rating from the Better Business Bureau.
The company has been around for more than eight years and has over 3 million users.
In order to work with Perpay, you’ll need to be employed full-time with three months of history with your current employer.
Perpay requires that you have an annual income of at least $15,000 and the ability to set up multiple direct deposits.
The company mandates that you are at least 18 years old and a U.S. resident. You’ll need to have an active mobile phone to access the app.
Finally, you must be in good standing with all of your financial obligations without any active bankruptcies on the books.
You can return some items to Perpay within 30 days of delivery. However, the items must remain packaged with their factory seal.
You cannot return items like used jewelry, furniture, pet food, items from specific brands and more.
The frequency of your installments will vary based on your paycheck cycle.
If your paycheck comes weekly, you’ll pay weekly installments.
Alternately, if your paycheck comes monthly, you’ll pay monthly installments.
Perpay offers you a way to purchase items before you have the funds to cover the entire cost. The lack of interest payments makes the platform particularly enticing.
However, you should consider the additional cost that is factored into the prices offered by Perpay. Weigh your options for each purchase based on the mark-up involved. It is possible you might find a better deal elsewhere.
Even with the mark-up, Perpay can be a useful option for those on a tight budget who are willing to take on an installment loan.
Take a look at your budget before jumping in with any buy now pay later option. You might decide to set up a sinking fund for a nonessential item to save up before you make a big purchase.