Understanding the pros and cons of Sezzle can help you make informed decision if using the Buy Now Pay Later (BNPL) service is for you.
Pros of Using Sezzle
Unlike credit cards using Sezzle gives you interest-free payments on purchases. Sezzle lets you split payments into 4 easy installments interest-free, like most BNPL services.
This approach makes it manageable to get a small loan for purchases that otherwise would go on annoying credit cards. Many users find BNPL to be useful to stretch dollars and paychecks further.
Easy Approval Process
Sezzle has an easy approval process that makes it accessible for a larger consumer base.
Most consumers that are applying for a Sezzle loan will receive approval almost instantly with a basic soft credit check.This won’t hurt your credit score even if you have bad credit.
Improv Credit Score
If you use Sezzle you can improve you credit score.
Sezzle reports successful payments to credit bureaus. There is a catch though, you need to be enrolled in the Sezzle Up program for the BNPL company to report to credit ratings firms.
Cons of Using Sezzle
Like any financial service or BNPL company Sezzle has some cons.
Sezzle Late Fees
Sezzle charges late fees for missed payments and failed payments that do not go through.
These fees can add up and negate the interest-free loan benefit, depending on how much your purchase was.
WalletWell recommends being careful with due dates on your Sezzle loans to avoid any issues. If you can’t make a scheduled payment, reach out to Sezzle customer support.
Impact on Credit
If you are missing payments, Sezzle will report to credit ratings agencies.
So Sezzle can have a negative affect on you credit score.
It’s up to you to make sure to make those schedule Sezzle payments.
Participating Merchants
Sezzle is a much smaller player in the BNPL space compared to Klarna, Affirm, Afterpy, and PayPal. That means it isn’t accepted with as many merchants and retailers.
Pros and Cons of Sezzle
Like any financial service Sezzle has it’s pros and cons.
Make sure to make an informed decision if using Sezzle is right for you. Weight the Pros and Cons for your financial situation.