Find out about buy now, pay later, whether you can obtain guaranteed approval and your other fast cash options with Savvy.
Fact checked
Fact checked
Buy now, pay later is a popular method for financing in Australia. It can be used across a wide range of online and in-store shopping expenses. However, it's important to know whether this comes with guaranteed approval before you apply. You can learn all about this type of finance with Savvy, as well as what your alternative options may be, right here.
Buy now, pay later (also known as BNPL) is a service which enables users to spread the payments of their purchase out over an extended period, typically several weeks, instead of paying everything at once. They’re designed to make the process of purchasing goods and services more manageable for your budget.
In terms of how they work, a BNPL service will cover the cost of your purchase, providing you with access to it instantly. From there, you’ll pay in interest-free instalments up to your chosen repayment period. If you make each of these repayments on time, you won’t be charged any additional fees, but making a late payment will result in potentially steep late costs. On top of this, some lenders may also charge further fees including monthly, establishment and processing fees (these won’t always be the case, however).
This system is similar to the lay-by structure traditionally offered by shops, although your purchase is withheld until the payment is complete with a lay-by plan, which isn’t the case with BNPL. Charges beyond late fees are also uncommon.
No – there is no such thing as a BNPL deal or loan in Australia with guaranteed approval. All providers of credit products such as loans (which is also set to include BNPL by the end of 2023) must comply with Responsible Lending Obligations enshrined in Australian law. This means that all applications will be subject to credit and affordability checks, placing a requirement on providers to assess your suitability for a credit product before approving you.
Prior to this being introduced, some BNPL providers operate without conducting credit checks during the assessment process, most notably Afterpay. However, once these legislative changes are brought in, credit checks will be conducted across the board. This doesn’t mean products won’t be open to those with bad credit, however, which remains the case with small loans.
Australians seeking quick cash have a variety of options beyond BNPL services. These alternatives include:
No matter the time of day or week, you can complete your small loan application with us online.
You can receive an outcome in 60 seconds and, if successful, have your money sent in just one hour.
We're partnered with reputable Australian lenders to bring you greater peace of mind when applying for your small loan.
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
