AO Finance - FAQs

What will you do with the information I give you?
You can find details of how AO use your information here. There are details of how NewDay use your information to make a responsible lending decision in their privacy policy. You can view this policy in the application process.

If my application's declined, can I apply for AO Finance again?
You can reapply, but we’d suggest not doing it immediately. The best thing to do is to check your credit score and credit report online, then we’d advise waiting 6 months before you apply again.

If my application's declined, can I appeal the decision?
Yes – to appeal the decision, please call NewDay on 0333 220 2598 . Bear in mind that you’ll have one month to submit your appeal once NewDay has told you about their decision.

If I change my mind, can I cancel my AO Finance application?
If you have completed your application, you can’t cancel it. However, you can close your account at any time. If you have used the account, you’ll have to repay your balance and any interest. You can do this by calling their customer services on 0333 220 2598 . They’ll tell you how much you owe and how to pay it.

Can I pay a deposit?
No, unfortunately deposits and split payments (across various payment methods, e.g. card and PayPal) can’t be taken.

When can I start using AO Finance?
Your AO Finance account will be ready to use straight after you’ve signed your credit agreement. Then you can finish making your purchase.

What can I buy on my first order?
Unfortunately we are unable to accept orders which contain software or digital downloads on your first order. You can use AO Finance to purchase software or digital downloads once the equipment on your first order has been delivered to your home address.

What are my delivery options?
Please bear in mind that for your first order using AO Finance, you can only get the items delivered to your home address – the address you used in your AO Finance application. This means you can’t pick up items using a Click & Collect service for your first order.

What happens if I need to return an item?
If you return a product you have bought using AO Finance, the refund will be applied to your AO Finance account. If any interest has built up, this will still be due. If you had an instalment plan, the monthly payments will still be collected until the interest is repaid.

When and how will I get a statement?
You’ll get monthly statements electronically (these are called eStatements), and you can view them on your NewDay Online Account Manager. NewDay will send you an email every time an eStatement is ready to view. So, please remember to tell NewDay if your email address changes.

How do I make payments?
Simply visit your NewDay Online Account Manager or call NewDay on 0333 220 2598. Then, you can either make standalone payments each month, or you can set up a Direct Debit.

When does NewDay charge interest?
We calculate interest from the date each transaction (including any applicable fee) is added to your account, until the date that transaction has been repaid in full, and on any instalment plan balances from the date that the plan is set up, until it is repaid in full.

You are not charged interest on purchases made during your last statement period (not including those made on an instalment plan) if you repay your outstanding balance by the due date, and if you repaid the previous month’s outstanding balance on time.

NewDay charges interest on all fees, but not on default fees until at least the 29th day after they have told you about the default fee being charged. They work out interest daily and add it to your account on your monthly statement date.

What should I do if I'm having financial difficulties?
If you’re struggling to make payments towards your balance, please call NewDay’s customer services as soon as possible – they’ll be able to make suggestions on how to help. Their number is 0333 220 2598.

What is a credit limit?
This is the maximum amount you may borrow on your AO Finance account. It is based on NewDay’s assessment of your application, which includes the information you gave us and the result of the credit check.

Will my credit limit change?
NewDay regularly review credit limits to make sure that customers have the credit limit that is right for them. If you want your credit limit to be increased or decreased, you can simply log on to your NewDay Online Account Manager or call NewDay’s customer services on 0333 220 2598. They always keep an eye on your account to see how you’re getting on – they need to see that your account is well-managed, and that you’re making payments on time over a number of months before they can offer an increase. It’s best to keep your account up to date, as this will improve your chances of getting an increase accepted. To do this, make sure you stay within your credit limit and pay at least the contractual minimum payment each month.

What is the difference between the AO ‘My Account’ and the NewDay Online Account Manager?
My Account is the account you have with AO. This lets you log on to our site and make purchases. You can also keep an eye on your AO Finance account here too, by checking on your balance. To make a payment towards your AO Finance balance, view statements and notices and change your personal details, log on to your NewDay Online Account Manager.

What happens if I don't recognise a transaction on my account or I suspect fraud?
Please contact NewDay’s customer services on 0333 220 2598 as soon as possible. 

Can I close my AO Finance account?
Of course. Just log on to your NewDay Online Account Manager, and follow the instructions. You won’t have to pay any penalties, fees or charges for simply closing your AO Finance account, but you will need to repay the balance on your account.

Who can I contact if I have any more questions about my AO Finance account?
If you have any questions, it’s really easy to contact NewDay’s customer service line on 0333 220 2598. Opening times are 9am – 7pm Monday to Friday, 9am – 5pm Saturday and 10am – 4pm on Sunday.

What should I do if I'm unhappy with my AO Finance Account?
If you’re unhappy with how we’ve dealt with your AO Finance account or application, and you wish to make a complaint, please contact us and we’ll do our best to put things right.

If we have not been able to resolve your complaint to your satisfaction, once we have given you our final decision, you may be able to refer your complaint to the Financial Ombudsman. You can contact them on:

• Phone - 0300 123 9123
• Email - [email protected]
• Online - financial-ombudsman.org.uk
• Letter - The Financial Ombudsman Service, Exchange Tower, London, E14 9SR

To be eligible for Switch24, you must be an AO Five Star member with an AO Finance account. If you aren't already an AO Five Star member, you can add this at checkout before selecting Switch24. Read more about Five Star membership here.

If you don't have an AO Finance account, you can check your eligibility here, without impacting your credit rating.

AO Finance is our flexible finance account, provided by NewDay. AO Finance customers can choose a payment plan to suit them and receive a credit limit of up to £2500 to spend with us.

To be eligible to apply for AO Finance, you must:

- be 18 or over with a sufficient household income
- have no existing AO Finance account
- have an email address and UK mobile number
- have 12 months UK address history

NewDay are one of the UK’s leading providers of credit. They offer our customers flexible and responsible access to finance.

We trust them to look after our customers with all things finance, they’ll send you any information to do with your credit agreement and if you have any questions or just need to speak to someone about your account, they’re the helpful bunch on the end of the phone.

Switch24 is AO’s phone finance offer, available to Five Star members with an AO Finance Account. It combines a 24-month interest-free instalment plan for part of your phone’s value alongside a 24-month Buy Now, Pay Later plan for the rest, which is your ‘Value Lock’ amount. That means you can spread the cost and keep your payments low.

After 24 months, you can return the phone to us or upgrade to the latest model, and we’ll use its ‘Value Lock’ amount to repay the rest of your Switch24 balance. Or, if you'd rather keep the phone, you can pay back the Value Lock amount on your AO Finance account - interest will apply from month 25 at your standard purchase rate.

1. You buy your phone with a low upfront payment. 

2. We ‘Value Lock’ the phone, which means we tell you what we think it’ll be worth in 24 months (as long as it’s in ‘good condition’). You don’t need to pay the 'Value Lock' amount for now.

3. You pay back the rest of the phone’s cost in 24 interest-free monthly instalments. 

4. After 24 months, you can return the phone to us or upgrade to the latest model, and we’ll use its ‘Value Lock’ amount to repay the rest of your Switch24 balance. Or, if you'd rather keep the phone, you pay back the 'Value Lock' amount on your AO Finance account - interest will apply from month 25 at your standard purchase rate.

Read our full terms and conditions here.

As a Five Star member, you’re shown a fixed trade-in value from day one – the 'Value Lock'. As long as the device is in ‘good condition’ and you have a valid Five Star membership at the time you trade it in, you’ll get this value back.

If you choose to return or upgrade your phone, the ‘Value Lock’ will be paid towards the outstanding Switch24 Buy Now, Pay Later balance. 

If you decide to keep the phone or you don't receive the full ‘Value Lock’ amount because your phone is not in good condition, you'll need to pay off the remaining Switch24 balance on your AO Finance account – interest will apply at your standard purchase rate from month 25.

We’ll send you an email close to the end of the 24 months explaining your options. You can choose to: 

• Switch: You can choose to upgrade and start again with a new Switch24 plan. Once your new phone arrives, send back your current phone and we’ll check the phone’s condition and let you know if it’s worth the full ‘Value Lock’ amount. We’ll then use that amount to repay the rest of your Switch24 balance.
• Keep your phone: Repay the 'Value Lock' amount on your AO Finance account - interest will apply from month 25 at your standard purchase rate.
• Return your phone: Simply send it back, and we’ll check the phone’s condition and let you know if it’s worth the full 'Value Lock' amount. We’ll use that amount to repay your Switch24 balance. 

The 'Value Lock' guarantees a trade-in value, but it’s subject to the phone’s condition. Minor wear is fine, but significant damage may reduce the final value.  Find out more about what condition your phone needs to be in and how to protect it here.

If you don't receive the full 'Value Lock' amount, you’ll need to repay the remaining Switch24 balance on your AO Finance account – interest will apply from month 25 at your standard purchase rate.

Before you commit to anything, we’ll show you exactly what your Value Lock amount is. That means you’ll know the value you’ll receive for your device, as long as it’s in ‘good condition’, at the end of your Switch24, so there are no surprises later.

We'll also confirm this by email.

Switch24 is limited to one phone per order. If you want to buy more than one using Switch24, and you have available credit on your AO Finance account, just place a second order. Or, if you’d prefer to buy two phones in one order, you can choose a different payment method or one of our other AO Finance repayment options, instead of using Switch24.

Switch24 splits the cost of your phone into two parts:

Part one is on a 0% interest instalment plan. This is the bit you pay off monthly over 24 months, which covers everything apart from the ‘Value Lock’ element of the phone. At the end of your Switch24 period, you will have repaid this in full so long as you’ve kept up to date with your payments.

Part two is the amount your ‘good condition’ phone should be worth after the end of your Switch24 period – this is your ‘Value Lock’. Until this time, it sits on a 0% Buy Now, Pay Later plan and you don't need to make any payments towards it.

If you upgrade or return your phone at the end of the Switch24 period (and it’s in good condition), the Value Lock amount will be used to repay your Buy Now, Pay Later balance. So that second part is sorted - no need to pay it off separately. 

If you decide to keep the phone, you'll need to pay off the Buy Now, Pay Later balance on your AO Finance account – interest will apply at your standard purchase rate from month 25.

You’ll see both parts clearly on your statement and in your AO Finance Online Account Manager, so it’s easy to keep track.

No, there are no hidden fees or charges. You get 0% interest for 24 months so long as you keep up to date on all your payments. If you return your phone and receive the full 'Value Lock' amount, there will be nothing left to pay.

If you choose to keep your phone, you will need to repay the rest of your Switch24 balance on your AO Finance account – interest will apply at your standard purchase rate.

Switch24 is only available to Five Star members, and you’ll need to be a Five Star member to trade in your phone at the end of the Switch24 period.

There is an annual fee for Five Star Membership, and if you paid for your membership on your AO Finance account, this will automatically renew every year. The payment will be taken from your AO Finance account as a Flexible Credit payment. This means that interest will be charged at your standard purchase rate. Read the Five Star membership T&Cs here.

AO Finance is a revolving credit account with a limit of up to £2500. If you choose to use Switch24 to buy your phone, the full cost of the phone, minus your upfront payment, will be taken from your available credit.

As an example, if a phone bought on Switch24 costs £800, you’ll need to make an upfront payment of £40. The remaining £760 will be charged to your available credit in your AO Finance account. 

Switch24 is interest free for 24 months so long as you keep up to date with your payments.

After this, you can choose what happens with the amount held as your ‘Value Lock’ against your phone. See ‘What happens at the end of the 24 months?’ above.

If you decide to keep the phone or you don't receive the full 'Value Lock' amount because your phone is not in good condition, you'll need to pay off the remaining Switch24 balance on your AO Finance account - interest will apply at your standard purchase rate from month 25.

With an upgrade you can choose to start again with a new Switch24 plan for the newest handset at that time, then send back your current phone to redeem your ‘Value Lock’ and clear the remaining balance on your existing Switch24 plan.

The ability to upgrade and take out a new Switch24 plan is subject to availability and there being available credit on your AO Finance account.

In some cases, when you upgrade, your first payment on the new Switch24 plan may fall into the same month as your final payment on your existing plan.

Switch24 is a 24-month plan, so you can’t redeem your ‘Value Lock’ amount until month 24.

To upgrade earlier than month 24, you can buy a new phone and select a Switch24 plan again, provided you have available credit on your AO Finance account. However, you wouldn’t be able to access the ‘Value Lock’ amount until you return your original phone at the end of the Switch24 plan.

The ability to upgrade and take out a new Switch24 plan is subject to availability, and available credit on your AO Finance account.

Yes. You can pay off your Switch24 balance early whenever it suits you, with no early repayment charges. Just head to your NewDay Online Account Manager and choose the amount you want to pay.

If you have other balances on your AO Finance account which are not interest free, your payment will be applied to those other balances first, before they reduce your Switch24 balance. This is because we are required to apply your payments to the balance with the highest interest rate first, to keep your costs low.

If you have any questions about how your early payment would be applied to your account, please contact NewDay who will be able to help.

That's fine - you have the option of keeping your current phone and paying off the remaining balance as works best for you. So, you could pay it off in full to avoid interest or you could continue to pay the outstanding balance on your AO Finance account, with interest applying at your standard purchase rate from month 25.

You could also simply return the phone and, if it’s in good condition, we’ll use the 'Value Lock' amount to repay your Switch24 balance.

If you don't receive the full 'Value Lock' amount, you'll need to pay the remaining balance on your AO Finance account – interest will apply at your standard purchase rate from month 25.

If you don't keep your account up to date, your Switch24 instalment and Buy Now, Pay Later plans will be cancelled, and you'll start to be charged interest at your standard purchase rate.

You will, however, still be able to claim the 'Value Lock' amount for your good condition phone after 24 months.

Good condition means the device still works exactly as it should, with no cracks, chips, dents, or screen defects like dead pixels.

Some minor signs of wear on the screen or body are fine, but there should be nothing that affects performance. The touchscreen needs to be responsive, and all parts and ports still fully functional.

Here’s a handy checklist before you send your phone back:

1. Does the phone switch on and get to the home screen without any issues? We just need to know if it powers up and works as expected.
2. Is all your personal data removed, and any activation locks turned off? That includes things like ‘Find my iPhone’ or other device locks – we won’t be able to accept it otherwise. 
3. Is the front and/or back glass free of cracks, chips and damage (e.g. severe scratches)?
4. Is the screen working properly? It should be free from any issues like screen burn-in, non-functional pixels, blue lines, flickering, etc.
5. Are all of the components intact and working properly? We mean things like cameras, speakers, buttons, microphone, battery and charging port, etc.

It’s all about keeping your phone clean and protected.

We recommend using a case and screen protector to avoid scratches or knocks. Keep it away from water and extreme heat and avoid overcharging.

Click here to see our range of cases and screen protectors.

To make sure everything runs smoothly, there are a few situations where we’re unable to offer any value for a device:

• It’s listed as lost or stolen on the CheckMEND register
• It’s a fake or fraudulent device, or not the genuine model originally ordered
• It has cracked back glass
• It’s bent, crushed or snapped
• It’s still logged in to an iCloud account (this can usually be unlocked remotely*)

*For Android devices, especially Samsung, personal accounts can’t always be unlocked remotely and may need to be returned. So, it’s even more important to make sure your device is fully unlocked before sending it in.

We’re working with musicMagpie, who are part of the AO family.

They're mobile and tech Trade In experts, so your phone is in great hands! We'll send you all the info you need to send your phone back to us safely. 

Once you've decided to upgrade or return your phone, you'll need to package it up safely and we'll email you a QR code to send it back to us via one of our approved methods. Currently, we’re using Royal Mail.

We can’t accept your phone if we can’t access it, so you need to perform a full factory reset and remove any passcodes or linked accounts before you send it back to us.

For the safest shipping experience, we recommend using the original packaging, as it’s designed to protect your device.

If you don’t have it, a sturdy cardboard box with bubble wrap will help prevent damage during transit.

It’s your responsibility to make sure your phone reaches us in the condition it leaves you. 

At month 23, we’ll email you with your options and the details you’ll need to let us know if you want to upgrade, keep or return your phone.

You'll need to decide on which option you’re taking by month 24, and you’ll then have 14 days from letting us know to send it back to us.

Your phone will need to be back with us before the next billing month to redeem your 'Value Lock' amount. These dates will be made clear in the email that we send to you.

If it arrives later than this:

• We'll reassess it in line with our trade-in partner’s current market value, and you'll be given the option to trade in for this amount;
• Interest will apply from month 25 at your standard purchase rate on the Switch24 balance remaining on your AO Finance account.

The phone will be assessed by our chosen partner, musicMagpie. If they assess it and your phone isn't in ‘good condition’ meaning it isn’t quite worth the full 'Value Lock' amount, we'll notify you and a Damage Fee will be deducted from the amount we pay.

Damage Fees represent a reasonable reduction and will vary based on device and level of damage, but we will always let you know and give you the option of taking your phone back and clearing your AO Finance account with an alternative method instead.

If your 'Value Lock' does have a Damage Fee deducted, you'll need to repay the remaining balance on your AO Finance account – interest will apply from month 25 at your standard purchase rate.

No problem - you can get in touch and let us know, and we'll return the phone to the address on your AO Finance account.

You'll then need to repay the 'Value Lock' amount which remains on your AO Finance account at your standard purchase rate.

It’s easy! Just add membership to your basket before you check out.

As well as exclusive access to the lowest monthly prices on phones, with AO Five Star membership, you get loads of other brilliant benefits for just £39.99 a year:

• Free & unlimited delivery: No delivery fees, ever. Next day delivery is included where we can, and you can even pick a timeslot that suits you for a little extra.
• Exclusive savings: Enjoy member-only prices across loads of products, plus special star deals every week.
• Free Unpack, Remove & Recycle: We’ll unpack your new large appliance, take away all the packaging, and recycle your old one too. No hassle, no trips to the tip.
• 100-day returns: Changed your mind? No problem. You’ve got 100 days to return your order, and it’s super easy.
• Competitions & giveaways: Get access to exclusive member competitions and giveaways. Just make sure you’re signed up to our emails so you don’t miss out.

All this, and more, for just £39.99 a year. Simple!

Yes, you’ll own the phone – this isn’t a rental or hire purchase agreement. You’re buying the phone using credit from your AO Finance account, which means you’re responsible for paying off your account in full and on time.

At the end of your Switch24 period, if you decide to return or upgrade your phone, you’ll be handing ownership back to us at the ‘Value Lock’ amount, minus any Damage Fee which may be applied. 

If you lose your phone and you’d bought it with Switch24, you’d still be responsible for paying off your AO Finance account in full, as agreed.

Because you’d no longer have a phone to return, you wouldn’t be able to benefit from the ‘Value Lock’ trade in amount at the end of your Switch24 period.

What is buy now, pay later?
It’s one of the plans that is available under AO Finance which you could be offered at checkout. It lets you buy a product now, and pay nothing for 6 or 12 months, depending on which option you are offered. There are no payments required on buy now, pay later purchases during the promotional period. After the end of the promotional period, you can pay off the balance in full to avoid interest. Otherwise, it will be moved to the flexible credit balance and start to be charged at your standard purchase rate. At this point, you will need to make at least the minimum monthly payment.

Buy now, pay later is only offered on products costing £200 or more.

Why can't I see the buy now, pay later option at the checkout?
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 circumstances. 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.

When do I pay interest?
Interest won’t be charged 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 during the 12-month promotional period. If you do not pay the total balance in full before the end of that period, it will be moved to the flexible credit balance and start to be charged at your standard purchase rate.

Are there any set up fees or other costs relating to buy now, pay later?
No, there are no fees or costs to set up a buy now, pay later plan. Details of all fees and charges are set out in your Credit Agreement.

How can I make sure I keep my buy now, pay later plan?
To keep your buy now, pay later plan, you must keep your AO Finance account up to date. You can do this by staying within your credit limit and making any monthly contractual minimum payments on time.

It’s one of the payment options that is available under AO Finance. Once you’ve been accepted for AO Finance, you’ll be offered this option when you go through to checkout. If you choose this option, all you need to do is pay the contractual monthly payment amount, and more when you can afford it. It’s as simple as that. There’s also no minimum spend if you want to use Flexible Credit.

How much do I need to pay each month?
You need to pay at least the contractual monthly payment amount. This will be the higher of either £5 (or the full amount you owe, if you owe less than £5), or the sum of:

• interest,
• default fees, and
• 1% of the full amount you owe (including the interest and default fees) as shown on your monthly statement.

It's always best to pay more on months when you can afford it though, as you’ll pay off the balance faster.

If you don’t pay the contractual minimum monthly payment, you’ll be charged a late payment fee. Your late payment may also be reported to credit reference agencies which could make it difficult for you to get credit in the future.

You will be charged interest at the standard purchase rate and, if you do not make payments on time or you go over your credit limit, you will be charged a fee. Details of all fees and charges are set out in your Credit Agreement.

How long will it take me to pay off the cost of my purchase on flexible credit?
There’s no fixed timeframe. If you only pay the monthly minimum amount, it’ll take you longer to pay off the cost of the appliance plus interest. If you pay more on months you can afford it, it’ll cost less in interest and will allow you to pay off the total balance faster.

What is an instalment plan?
It’s one of the payment options that is available under AO Finance. An instalment plan can help you to clear your balance faster and would cost less when compared to making contractual minimum payments. Once you’ve been accepted for AO Finance, you could be offered this option when you go through to checkout. Choose whether you’d prefer to spread the cost of the appliance and interest over 24, 36 or 48 months.

You will need to pay at least your contractual minimum payment and your monthly instalment payment each month otherwise your instalment plan will be cancelled. NewDay will confirm this amount on your monthly statement.

Instalment plans are only available on products costing £200 or more.

I have enough available credit on my account, so why can’t I buy on an instalment plan?
You will need to have enough available credit to cover both the purchase price and the interest over the instalment plan period. We cannot set up an instalment plan which would take you above your credit limit. You’ll be asked to choose another payment method or payment plan, or you could purchase a cheaper product instead.

How much do I need to pay each month?
Depending on the length of your instalment plan, NewDay will confirm how much you need to pay each month. This will cover the purchase and the interest, plus your contractual minimum payment.

There are no fees to set up an instalment plan, but you will be charged interest at the standard purchase rate. Details of all fees and charges are set out in your Credit Agreement.

What happens if I do not make a monthly instalment payment?
Payments towards your instalment plan are optional, and you will not go into arrears if you chose to only pay your contractual minimum payment, however, your plan will be cancelled. If your plan is cancelled, the balance will be moved to flexible credit and continue to be charged at your standard purchase rate. You’ll need to pay the minimum monthly payment, and more when you can afford it.

Do I need to update my Direct Debit after my instalment plan has been set up?
If you have a Direct Debit, the amount NewDay collect will always include your monthly instalment payment.

But, please note that:

• If you have set up a full balance Direct Debit, your next Direct Debit payment will clear your statement balance, including the whole instalment plan balance. If you want to make the most of the monthly instalment payments, you’ll need to amend your Direct Debit.
• If you have a fixed amount Direct Debit and the amount isn’t enough to cover the monthly instalment payment, NewDay will increase your Direct Debit that month to make sure they collect at least your contractual monthly payment and your monthly instalment payment.

To make any changes to your Direct Debit, please log into your NewDay Online Account Manager, or call NewDay’s customer service line on 0333 220 2598.

How can I make sure I keep my instalment plan?
To keep your instalment plan, you must keep your AO Finance account up to date. You can do this by staying within your credit limit and making your monthly payments on time.

Can I cancel my instalment plan?
You can cancel your instalment plan at any time. Just contact NewDay on 0333 220 2598.

There is no cancellation fee. If you cancel your instalment plan, the remaining balance on your instalment plan will be moved to your standard purchase balance to be charged at your standard purchase rate.

What is a 0% interest instalment plan?
With a 0% interest instalment plan, you’ll spread the cost of your appliance by paying a fixed monthly amount each month. By paying the agreed amount every month, you won’t have to pay any interest and your balance will be paid off by the end of the 0% promotional period. We only offer 0% instalment plans on products costing £200 or more. However, there may be offers available on products under £200 from time to time – check the terms of the offer for details.

Why can't I see the 0% option at checkout?
0% interest instalment plans are promotional offers which are only available on certain products and aren’t offered all year round. Whether this plan is offered to you will also depend on the result of your credit check and on NewDay’s assessment of your circumstances. So, if your circumstances have changed, you may no longer be eligible for a 0% offer.

How much do I need to pay each month?
Depending on the length of your instalment plan, NewDay will confirm how much you need to pay each month. This will cover the purchase plus your contractual minimum payment.

What happens if I do not make a monthly instalment payment?
Payments towards your instalment plan are optional, and you will not go into arrears if you chose to only pay your contractual minimum payment, however, your plan will be cancelled. If your plan is cancelled, the balance will be moved to flexible credit and start to be charged at your standard purchase rate. You’ll need to pay the minimum monthly payment, and more when you can afford it. If you’ve set up a Direct Debit, it’ll automatically be adjusted so NewDay won’t collect any monthly instalment payments.

How can I make sure I keep my 0% interest instalment plan?
To keep your 0% interest instalment plan, you must keep your AO Finance account up to date. You can do this by making your monthly payments on time and by staying within your credit limit.

Do I need to update my Direct Debit after my instalment plan has been set up?
If you have a Direct Debit, the amount NewDay collect will always include your monthly instalment payment.

But, please note that:

• If you have set up a full balance Direct Debit, your next Direct Debit payment will clear your statement balance, including the whole instalment plan balance. If you want to make the most of the monthly instalment payments, you’ll need to amend your Direct Debit.
• If you have a fixed amount Direct Debit and the amount isn’t enough to cover the monthly instalment payment, NewDay will increase your Direct Debit that month to make sure they collect at least your contractual monthly payment and your monthly instalment payment.

To make any changes to your Direct Debit, please log into your NewDay Online Account Manager, or call NewDay’s customer service line on 0333 220 2598.

When you make a payment to NewDay , it will be applied to the balance shown on your statement first, and then to any transactions not yet shown on your statement, as follows:

• NewDay use your payment to pay off balances that are charged at higher interest rates before those charged at lower interest rates
• If interest is charged at the same rate on different balances, NewDay will first use your payment to pay off any promotional offer balances, then any standard retail purchases (including default fees)
• If you have more than one promotional offer balance of the same type at the same rate, NewDay will first apply your payment to the promotional offer balance that has the earliest start date

On a BNPL plan, no payments are required – and no interest will be charged until the plan has reached its expiry date. To find out the expiry date, please check your most recent statement.

• NewDay recommends you make a payment no earlier than one working day after the expiry date to benefit from the full Buy now, pay later promotional period.
• You should make sure your payment is made before the next payment due date following expiry to avoid paying any interest on your Buy now, pay later balance.
• If you have other balances on your account, such as Flexible credit or Instalment plans (including 0% plans), NewDay will always apply payments towards those balances first before reducing your Buy now, pay later balance.

For example, if in January you bought a TV on a 6-month BNPL plan and you also bought a fridge on a 12-month 0% instalment plan – then any payments you make from January to June would be allocated first towards the balance of your 12-month 0% instalment plan, not your BNPL. Once the promotional period of your BNPL expires, any payments you make would then be allocated as outlined in the section “How are my payments applied to my different balances?

Under the terms of your BNPL, no payments are required towards the BNPL balance until your promotional period ends. Any payments that are received prior to the end date will reduce the BNPL balance accordingly. Once the BNPL plan has reached its end date, the next statement issued following the date of expiry will require you to make the minimum payment as detailed on that statement. To avoid being charged interest, you will need to clear the BNPL balance by the due date.

Please check your most recent monthly statement. You will also receive an email 21 days prior to the expiry date of the BNPL plan which will contain the expiry date alongside other important information on repaying the balance.