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AO Finance – Flexible Credit
Just pay the monthly minimum and more when you can afford it.
If you’re short on cash but your washing machine’s just conked out, this could be a great payment plan for you. All you have to do is pay a monthly minimum amount agreed by NewDay, and just pay more when you can afford it.
- No deposit
- No fixed timeframe
- A monthly minimum amount to pay
- The option to pay more when you can afford it
- Representative 19.9% APR (variable)
But, before you jump into it, here are a few frequently asked questions to help put your mind at ease.
What is flexible credit?
- What is 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.
- Is there a minimum spend?
No, there’s no minimum spend if you want to use this payment plan.
Talk me through the costs involved
- How much do I need to pay each month?
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.
- How long will it take me to pay off the cost of my purchase on flexible credit?
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.
- Are there any extra hidden costs?
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.
- When is my first payment due?
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.
How do I manage my flexible credit plan?
- How can I make sure I keep my plan?
You must keep the plan up to date by staying within your credit limit and making your contractual monthly payments on time.
- What happens if I don't pay the contractual minimum amount?
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.
Who can I talk to about my AO Finance?
NewDay’s customer service line is 0333 220 2598. Opening times are 9am - 7pm Monday to Friday, 9am - 5pm Saturday and 10am - 4pm on Sunday. 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 example
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.
