A Complete Guide To Amazon Financing And Payment Plans

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From fashion to furniture, you can purchase almost anything on Amazon. There are times when you may want to stretch out your payments over time to cover your purchase. You can use buy now, pay later services on Amazon, or opt for a credit card. But services like these can tempt you to overspend beyond what you can actually afford to repay by making a big purchase feel smaller. Make your purchase decisions based on the full price, not the payment plan amount.

Does Amazon have payment plans?

Shoppers may be surprised to learn that yes, Amazon does have payment plans. The installment payment plans are offered through Amazon store-branded credit cards or through a third party.

Amazon Equal Pay

If you own the the Prime Visa* or Amazon Store Card* (or open up a new account), you could be eligible for Amazon Equal Pay. This plan offers 0 percent financing and breaks up a purchase between six and 24 months of equal payments, without incurring interest charges.

As noted above, Amazon Equal Pay is available with both Amazon cards, but the terms and conditions are different depending on which card you have. For either one, you will not be charged interest as long as you make your payments on time and in full, and the total amount is charged when the item ships, but then your installment payment is part of your monthly minimum payment requirement.

However, if you are late on a payment, you’ll be charged a late fee and will owe interest on the late fee at the standard purchase rate.

Additional Amazon financing options

Citi Flex Pay

Thanks to Citi Flex Pay, those with an eligible Citi credit card can pay select Amazon purchases over time with either a 0% APR or low interest rate, depending on your payment plan, when using Amazon Pay at checkout. 

For Amazon purchases over $50, Citi will let you break up your payments into equal monthly payments between three and 24 months. To take advantage of this payment plan, simply select your Citi card as your payment choice when using Amazon Pay to complete an Amazon purchase.

Amex’s Pay It, Plan It

Similar to Citi, there are flexible payment plans for American Express cardholders. The American Express Pay It, Plan It program offers the ability to break up purchases of $100 or more over time. You’ll be charged a monthly fee, but there are no interest charges.

Credit cards that offer 0% intro APR offers

Another route for paying over time involves choosing a credit card with a 0% introductory APR. Numerous credit cards entice new users with long promotional periods, so check out Bankrate’s list of the best 0% interest credit cards to find a suitable option for you.

Buy now, pay later plans

Not all buy now, pay later companies work with Amazon, but here are a few available for consideration. But be wary. BNPL can tempt buyers into impulse purchases and overspending, Bankrate’s Buy Now, Pay Later Survey found.

• Affirm
  

  Affirm offers several financing options, some of which allow up to 48 months for repayments. Although Affirm offers flexibility, not all options include interest-free financing. Further, depending on the loan type, Affirm may conduct a hard credit check, which could impact your credit score.

• Klarna
  

  With Klarna, you can download the app or add its browser extension to buy purchases now and pay later (over time). Klarna offers the ability to split up a purchase into four equal installment payments, paid every two weeks. Klarna only uses a soft credit check, so your credit score is not impacted. Be aware there are late fees for late payments, and you could be sent to collections for lack of payment.

Which is the right Amazon financing option for me?

The first decision you have to make is to determine how long you realistically need to pay off your purchase. While the Amazon Monthly Payments option is convenient, it may not give you as much time to pay for the purchase as the Equal Pay or Special Financing options do.

On the other hand, if you’re concerned about a hard credit pull or establishing another credit card in your name (that you may have trouble qualifying for or paying on time), a BNPL service may be the better choice.

Whichever option you choose, thoroughly knowing your payoff plan ahead of time is key.

The bottom line

Amazon shoppers may not realize how many choices are available to them to stretch payments out a little further. Finding the right Amazon payment plan for your budget has never been easier — but do so with caution. Know your payoff goal beforehand and keep track of payment due dates to avoid paying more than you initially intended.

*The information about the Prime Visa card and Amazon Store Card has been collected independently by Bankrate. The card details have not been reviewed or approved by the issuer.