Read about buy now, pay later for phones, your alternative options and whether you can get approved with no credit check with Savvy.
Fact checked
Fact checked
Buy now, pay later has become a popular choice for financing phone purchases in Australia, sometimes without the need for a credit check. However, it's essential to understand what this type of finance is and how it works. That’s where Savvy can help, as you can learn all about buy now, pay later options for phones and other fast cash solutions which may suit you.
Buy now, pay later (BNPL) is a widely used payment method that lets you spread out the cost of your purchases into manageable instalments, typically over several weeks, rather than paying everything upfront. It's designed to make buying goods and services more accessible and budget-friendly.
With BNPL, the service provider covers the cost of your purchase, giving you immediate access to it. You'll then repay the amount in interest-free instalments over your chosen repayment period. Ensuring your repayments are on time keep you from incurring additional fees, while late payments may result in substantial charges. Some lenders may also charge supplementary fees, such as monthly, establishment, or processing fees, but this is not always the case.
BNPL shares similarities with lay-by, a traditional store-based payment option. However, lay-by requires full payment before releasing the purchase, while BNPL provides immediate access to the goods. Lay-by also rarely incurs charges beyond late fees.
While some BNPL providers currently offer products without credit checks, upcoming Australian legislation will require all providers of credit products, including BNPL (likely by late 2023), to comply with Responsible Lending Obligations. This means all such applications, including those to purchase a phone or any other good or service, will undergo credit and affordability checks, requiring providers to assess your suitability for a credit product before approval.
Despite these new regulations, BNPL products may still be accessible to those with bad credit. If your financial profile is deemed suitable for the specific BNPL deal you're applying for, you may still be able to secure the funds you need to buy your new phone and pay it off at a more manageable pace.
Australians seeking a quick cash injection have options beyond BNPL services. Consider these alternatives:
When seeking quick cash, thoroughly evaluate your options, assess your financial situation, and choose the solution that best aligns with your individual needs and circumstances.
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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.
