Buy now, pay later is a great option if your fridge freezer’s just died or you desperately need a new washing machine. It means you can get your product now and you won’t have to pay anything until 6 or 12 months down the line, depending on which plan you’ve got.
But, before you jump into it, here are a few frequently asked questions to help put your mind at ease.
It’s one of the plans that are available under AO Finance. Once you’ve been accepted for AO Finance, you could be offered this option when you go through to checkout, if NewDay think it’d be a good payment plan for you. It lets you buy a product now, and pay nothing for 6 or 12 months, depending on which option they offer you. Then, you’ll just need to pay off the cost of the product and any interest costs that build up if you don’t pay the amount off straight away. This interest rate will be confirmed by NewDay when you apply for AO Finance.
This payment plan is a great option if you know that you’ll be financially better off in 6 or 12 months’ time – it just lets you delay the payment.
Not everyone will be offered this payment plan – if it’s not available to you, then it won’t appear as a payment option when you get to the checkout. Whether this plan is offered to you will depend on the result of your credit check and on NewDay’s assessment of your details. It’s also worth noting that some buy now, pay later options may only be available as part of a promotion, so aren’t offered all year round.
Yes. If you want to buy now and pay later, the total cost of your basket must be at least £200. This can include the cost of more than one product, as well as any services you need.
If you’re on a buy now, pay in 12 months plan, the balance will move to a flexible credit account after the year is up. This means that you’ll start being charged the standard interest rate, and you’ll need to start paying a monthly minimum amount. This will either be £5 (or the full amount you owe, if you owe less than £5), or 1% of the full amount you owe, including interest and fees – whichever is higher.
You don’t need to pay anything until the ‘pay later’ time is up. Once that time has passed, it’s best to pay off the total balance in one go through your NewDay Online Account Manager. If not, you’ll have to make a monthly minimum payment this will either be £5 (or the full amount you owe, if you owe less than £5), or 1% of the full amount you owe, including interest and fees – whichever is higher. Just bear in mind that with interest building up, it’ll take longer to pay off the balance just with these monthly payments. But, you can always pay more on months when you can afford it.
Interest won’t start building up until the ‘pay later’ time is up. So, if you’ve chosen a buy now, pay in 12 months plan, you won’t have to pay any interest for the year. If you pay the total balance in full before the year’s up, you won’t have to pay any interest at all. NewDay will confirm your interest rate when you apply for AO Finance.
The only other payment that could be applied to your account is a late payment fee. But, if there are any other costs, you can find more information about them in your Credit Agreement.
That depends. You could just pay off the total balance in one go, before or after the ‘pay later’ time is up – this will save you time and money, because you won’t have to pay any interest. If not, how long it’ll take to pay back just depends how much you can afford to pay each month. You’ll have to pay at least the contractual monthly payment, but then it’s up to you if you pay any extra. Just bear in mind, if you only pay the monthly minimum amount, more interest will build up and it’ll take longer to pay off the balance.
Your first payment is due after the promotional period is up. NewDay will contact you with the exact date of the payment and you’ll be able to see it on your eStatement.
To keep your buy now, pay later offer, you must keep your AO Finance plan up to date. You can do this by staying within your credit limit and making your monthly contractual minimum payments on time (when you have to start paying them after the ‘pay later’ time is up).
NewDay’s customer service line is 0333 220 2598 – it’s open 7 days a week from 8am to 9pm. Please remember that calls will be charged at the standard national rate, and the cost may vary for mobile phone companies and operators. Calls may also be recorded or monitored for training and security purposes.
Why not find out a bit more about the other AO Finance payment plans, to see if they might suit you?
Representative 19.9% APR (variable). Interest rate: 19.94% per year (variable). Assumed credit limit: £1,200.