Using buy now, pay later for big electronic purchases

If you're in the market for a high-tech laptop or dreaming about a new flat-screen TV in your living room, you may be considering buy now, pay later (BNPL) as a means to pay for it.

What kind of electronic goods can be bought on BNPL?

Buy now, pay later can be used to pay for many different types of electronic goods. Some of the most common items include the following:

• Laptops
• Desktops
• Smartphones
• Smartwatches
• Televisions
• Tablets
• Digital cameras
• Video gaming systems
• Video game consoles
• Sound systems
• Security systems

Before the rise of BNPL financing options, consumers who couldn't pay for the entire cost of a product at checkout only had the options of using their credit card or signing up for a layaway program, if available. Similar to BNPL, layaway programs allow customers to pay in installments. The difference is shoppers aren’t able to take the item home until it’s fully paid off.

Potential benefits of using buy now, pay later for electronics

Many consumers use the buy now, pay later method to spread out payments for expensive electronics purchases.

Some advantages associated with BNPL include flexibility, convenience, and affordability. In some cases, depending on the BNPL option and provider you use, it can also help bypass interest fees and other additional charges, so long as you pay each installment on time.

Split the cost of expensive goods

With BNPL, splitting the cost can make acquiring electronics simpler than having to budget for the full price all at once. Using BNPL, you can spread out the expense by making fixed payments over a longer, more manageable period of time. It’s important to note that some BNPL plans can charge interest depending on the length of installments.

For instance, using BNPL can help you buy your child a new laptop during the hectic back-to-school season. It can also help bridge the financial gap for unexpected expenses, like replacing a broken smartphone or security system. If you’re on a fixed monthly budget, it can help you stay within your means, too.

Returning goods

Oftentimes, seller return policies allow shoppers to return items purchased via BNPL. Once the merchant informs the lender of your return, you should be able to collect your refund and cancel your payments.

Quick process

Buy now, pay later transactions can be a seamless and relatively easy process. If this type of financing is offered by your retailer, you can apply during the checkout process.

After your payment plan is determined, you can choose to have subsequent payments automatically deducted from your bank account or charged to your debit or credit card. You could also choose to pay using a bank transfer or check and can even set up autopay for some BNPL products to make sure you’re always paying on time.

Do hard credit checks apply?

Some buy now, pay later financing programs do not run hard credit checks. That means it is possible for customers to get approved for payment plans for electronics without being required to meet a certain credit score threshold to qualify.

However, your creditworthiness may be negatively affected if you miss a payment or fail to pay altogether, as this information can get reported to credit bureaus. It's also important to note that some buy now, pay later arrangements may require a soft credit pull — though it won't affect your score the way a hard credit inquiry would as it’s not shared with credit bureaus.

To get approved, you typically have to provide some personal information, such as your social security number and your home address.

Want the flexibility to pay for your next big electronic purchase over time? Learn more about PayPal’s buy now, pay later options here.