It’s great being able to spread the cost when you buy, but you always need to do your research on finance. We’ve gathered the most frequently asked questions, from how it works to how much it costs, to give you peace of mind about AO Finance.
Representative 19.9% APR (variable). Interest rate: 19.94% per year (variable). Assumed credit limit: £1,200.
Credit is provided by NewDay Ltd. AO Retail Limited acts as a credit broker for NewDay Ltd on an exclusive basis and is not a lender.
It’s a flexible finance account provided by NewDay. With it, you could enjoy a credit limit of up to £2,500 to spend at AO, along with various payment plan options – an instalment plan, flexible credit, 0% interest or buy now, pay later. So, you can repay the balance however suits you best. Just bear in mind, the interest rate, credit limit and payment plans you’re offered will be based on a credit check.
NewDay will be your finance lender, and emails about AO Finance will often come from them. So, remember to keep an eye out for their name while you’re scrolling through your inbox.
That depends which payment plan you choose. There’s no minimum spend if you want to use the flexible credit payment plan. But for an instalment plan, 0% interest and buy now, pay later, there’s a minimum spend of £200, which includes the cost of any extra services you might need (e.g. installation, recycling, etc.).
Anyone can apply for AO Finance, as long as you:
Of course, but just be aware that not everyone will be accepted for it. It’s worth remembering that NewDay will have to run a credit check as part of your application. So, your credit score will be taken into account when NewDay decide if you’ll be approved for AO Finance.
At AO we know how important it is to use the title and pronouns that match your gender identity. But sadly the credit check system we’re using doesn’t have ‘Mx’ as an option at the moment. We’re working with our partners to change this, but to check if you’re eligible for AO Finance you must choose the title you most identify with. Anything you get from AO will still use ‘Mx’ as your title.
If you’ve used finance to buy from ao.com in the past, you’ll have a payment plan with V12, our previous finance provider. If you’re still paying off the cost of your appliance, you’ll keep your plan with V12 until the balance is paid off. If you want to buy from AO using finance again, you’ll just need to apply for a new finance plan with NewDay. For customers who need help with their existing V12 payment plan, you can contact V12 on 02920 468 900 . For more information about a new plan with NewDay, you can contact NewDay on 0333 220 2598.
It should only take 5-10 minutes to apply, and you should find out straight away. There are occasions where NewDay might refer the decision to an underwriter to assess. If this happens, they might contact you for a bit more information before they decide if you’ve been accepted.
Yes, NewDay will always carry out a credit search. They run a no risk eligibility check first though, to tell you if they think you’ll be eligible for AO Finance.
The first no-risk eligibility check won’t affect your credit rating. But the full credit check might, and it’ll be recorded against your credit file.
It’s easy – just give NewDay’s customer services a call on 0333 220 2598 . They can send you a copy of the agreement at any time while you’ve got an AO Finance account.
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.
Yes – you’re more than welcome 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.
Unfortunately, you can’t cancel the application. But, once your AO Finance account is set up, you can withdraw from the agreement and close your account – just bear in mind that you’ll have to repay any money you owe NewDay, including any interest. When you get an email from NewDay to confirm your credit limit, you’ll have 14 days to close the account. 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, then you’ll have 30 days to repay it.
No, unfortunately deposits and split payments (across various payment methods, eg. card and PayPal) can’t be taken.
Your AO Finance account will be ready to use straight after you’ve signed your credit agreement. Then you can finish making your purchase.
For your first order on AO Finance, you can’t buy software or digital downloads on their own. If you want to buy one of these, you must also buy a physical product with it.
Of course – if you need to buy a few items at once, just add them all to the basket at the same time. When you choose a payment method, simply select one plan to pay for all of the products together.
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.
If you’ve paid using AO Finance but decide to return the product, the cost of the appliance will be refunded and put back into your AO Finance account. If this refunded amount covers the whole cost of the appliance, the payment plan will be cancelled and you won’t have to make any payments. But, if some interest has built up the refunded amount might not clear the balance in your account. In this case, you’ll still have to pay the previously agreed monthly payments to clear the balance.
Monthly instalment plans, 0% interest and buy now, pay later have a minimum spend of £200. But, if you need to return something, it means the cost could drop below this minimum spend. For example, you could buy 2 appliances with a total cost of £300 then return one, bringing the total order cost to £170. This won’t affect your payment plan and you can continue to pay off the balance using any of the plans mentioned above.
You’ll get monthly statements electronically (these are called eStatements), and you can view them on your Online Account Manager. NewDay will send you an email every time an eStatement is sent to you and is ready to see. So, please remember to tell NewDay if your email address changes.
A few days after creating your AO Finance account, you’ll get an email from NewDay asking you to set up an Online Account Manager with them. Here, you can edit your details and view transactions. So, when you’re making a payment, just visit your NewDay Online Account Manager and follow the quick and easy steps.
NewDay starts charging interest when a transaction’s been made (including any applicable fees), until it’s been fully paid off. On an instalment plan, it’s from the date the plan is set up until it’s repaid in full.
You are not charged interest on purchases (not including those made on an instalment plan) made during your last statement period 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.
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.
If you can’t afford to pay the monthly instalment plan, that’s OK – it’s optional, so you won’t go into arrears if you can’t pay it. But, it means that your payment plan will be cancelled and you’ll be moved onto the flexible credit account. On this new plan, you must at least pay the monthly minimum amount, but you can pay more when you can afford it. If this happens, interest will start being charged at your standard rate, and if you’ve set up a Direct Debit, it’ll automatically be adjusted so NewDay won’t collect any monthly instalment payments.
This is the maximum amount you may borrow on your AO Finance account. The amount you’re offered is based on NewDay’s assessment of your application, which includes the information you gave us and the result of the credit check.
If you want your credit limit to be increased or decreased, you can simply log on to your 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.
Please visit your NewDay Online Account Manager to change the details on your AO Finance account, and follow the instructions on there.
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. If you want to make a payment towards your AO Finance balance, or if you want to change your details, you must log on to your NewDay Online Account Manager instead.
Please contact NewDay’s customer services as soon as possible. Please remember that phone calls may be recorded or monitored for training and security purposes.
Of course. Just log on to your Online Account Manager, and follow the instructions. Here, you can easily change the details of your account. You won’t have to pay any penalties, costs or charges for closing your AO Finance account.
If you have any questions, it’s really easy to contact NewDay’s customer service line on 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.
If you’re unhappy with how we’ve dealt with your AO Finance plan or application, and you wish to make a complaint, please contact us as soon as possible and we’ll do our best to put things right. If you’re not happy with our decision following a complaint and you wish to take it further, you can ask the Financial Ombudsman Service to review your complaint. You can contact them on:
If you want to find out more about each payment plan, please visit your Online Account Manager, or feel free to browse through these pages.