AO Finance – Flexible Credit

It’s one of the payment options that are 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 plan, all you need to do is pay the contractual monthly payment amount decided by NewDay, and more when you can afford it. It’s as simple as that.

No, there’s no minimum spend if you want to use this payment plan.

You need to pay at least the contractual monthly payment amount through your NewDay Online Account Manager. 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.

There’s no fixed timeframe, so the plan will stay open as long as it takes for you to pay off the total balance. If you only pay the monthly minimum amount, it’ll take you quite a while to pay off the cost of the appliance plus interest. If you pay more on months you can afford it, it’ll stop interest building up too much, so you can pay off the total balance a lot faster.

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.

It will be due one month after you buy from AO. You’ll get an email from NewDay when your eStatement’s ready, then you can make a payment or set up a direct debit through your Online Account Manager or by calling NewDay on 0333 220 2598.

You must keep the plan up to date by staying within your credit limit and making your contractual monthly payments on time.

If you don’t pay the contractual monthly payment, you’ll get some late payment reminders. If you still don’t pay, you’ll be contacted by NewDay and a mark will be put on your credit file, so it could be difficult for you to get credit in the future.