Sezzle might be a good option for those with bad credit. Like most BNPL companies Sezzle doesn't solely focus on traditional credit scores.
Instead, Sezzle will evaluate other factors to determine your eligibility.
Can You Use Sezzle with Bad Credit?
Yes, you can.
Sezzle will consider more than your credit score and history when reviewing whether to approve you for a BNPL loan. A positive payment history with Sezzle and currently being employed will be taken into consideration. In addition to what your monthly income is from your job.
Sezzle will also look into your current debt load by doing a soft credit check. This is industry standard as Klarna and Affirm also do soft credit checks.
Sezzle's lending criteria varies though and WalletWell has no way to know whether you will get approved or not to use a Sezzle BNPL loan. We recommend you apply and see what they say.
Should You Use Sezzle with Bad Credit?
BNPL was setup for those that do have bad credit or those that fall outside of the traditional lending model. Some advantages to using Sezzle include.
Spread Costs
Sezzle, like most BNPL companies, allows you to split your payments into 4 equal installments with ease over 6-weeks for most purchases.
This allows you to spread the costs out while adding predictability to your spending. Just make sure to plan your finances around fixed payment schedules.
No Interest Fees
Do you hate how credit cards pile on fees? With Sezzle and BNPL you can say goodbye to that.
The best part of splitting payments into 4 is that it is an no interest loan.
Cons of Using Sezzle with Bad Credit
Some challenges you could face using Sezzle, or any BNPL service with bad credit.
Potential Account Limitations
With bad credit, Sezzle may set a lower spending limit on your account.
This means your purchase power might be small at first. However, you can increase and build that trust with Sezzle over time.
It's hard for WalletWell to say if and how much you will be approved for. Sezzle bases these limits on many factors, not just what they pull with a soft credit score.
In the BNPL world the automated algorithms rule all.
Managing Sezzle Payments
With flexible payment plans, it can be easy to lose track of purchases and spending.
There are plenty of cases we hear at WalletWell about consumers racking up too many BNPL payment plans. Make sure you have funds available on due dates is critical to avoid any issues.
Sezzle will send out reminders, but monitoring your expenses is key to prevent overspending.
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