Are you wondering what about Afterpay late fees? Are you going to miss a payment? Did you already miss an Afterpay payment and are wondering what they will do?
DimeScout has talked about this topic before in our article, What Happens if You Miss an Afterpay Payment?
We excerpted and added some details below with some changes.
Afterpay Late Fees
How Afterpay late fees work is that if your purchase price is $40 or less, Afterpay will charge a late fee of 25% of the purchase. This amount is capped according to the Buy Now Pay Later company.
For Afterpay purchase of $40 or above, they will apply a $10 late fee. If you do not make your Afterpay payment after 7 days from the due date of what was supposed to be your last scheduled payment, another $7 late free will apply to your purchase.
You won’t be able to use Afterpay on any other purchases until you finalize paying off the existing Afterpay debt that you missed a payment on. So no spreading out payments on that hot new bikini for summer.
Afterpay Missed Payments
According to Afterpay they will only charge you a late payment if you miss a payment. Afterpay is motivated to have you complete the purchase since they take on the risk of having you pay the loan.
The good about Afterpay is that late fees are capped and do not compound. Unlike credit cards which will compound late fees and interest.
Afterpay will send you email reminders for scheduled payments and will alert you if there is an issue with billing.
However if you miss a payment with Afterpay they are a bit harsh with customers. You will not be able to make any additional purchases using Afterpay or the Afterpay app, until you pay the outstanding balance.
Our experience with other BNPL companies such as Klarna and Affirm show they can be a bit more lenient.
Afterpay is also know for barring customers. You likely will see your spending limit with Afterpay go to $0. You will have to contact customer service if you want to continue to use Afterpay.
Members of the DimeScout community who are even 1 day late, will often have Afterpay loan limit go to $0. So we highly recommend that you make payments on-time and avoid Afterpay late fees.
If you want to continue to use them for small purchases and avoid credit cards you got to pay on-time.
What has your experience been with using Afterpay?
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