What is buy now pay later?

Buy now pay later or instalment plans are a type of short-term loan that lets you split the cost of your purchase into multiple repayments. These plans can be used to cover the cost of monthly bills, groceries, and other necessary expenses. 

Some buy now pay later services may charge you interest or fees to use them. Depending on which service you’re using, you may only be able to shop at specific stores.

How NAB Now Pay Later works

NAB Now Pay Later is our buy now pay later service connected to one of your NAB accounts. It lets you split the cost of a purchase into four fortnightly repayments. You pay the first instalment up front and the remaining instalments every few weeks.

Once set up, your NAB Now Pay Later can be used anywhere Visa is accepted. That means your NAB Now Pay Later can come in handy when:

Managing daily expenses: Manage your everyday expenses when you need extra financial help. You can use your buy now pay later for groceries, petrol, and even pay your bills to cover your monthly costs. 

Equipping your home office: You can use buy now pay later to upgrade the home office with a new laptop or gaming PC. Whatever you decide to do, an instalment plan can help you make your private office more comfortable without breaking the bank. 

Enhancing your home: If you’re planning to restyle your home and need to upgrade items like sofas, fridges, beds, and mattresses, the cost can add up quite quickly. A buy now pay later furniture arrangement can help you manage the cost of these large purchases by splitting the repayments over a few weeks, so you’re not out of pocket in one hit. 

Taking a holiday: Eyeing that trip to Europe but don’t want to pay for the holiday all at once? You can use your NAB Now Pay Later to pay for travel related expenses like flights, accommodation, insurance, and overseas shopping. 

Learn more about how NAB Now Pay Later works.

There are a few factors you should weigh up before applying for buy now pay later or instalment plans.

Impact on your credit score

Some providers may check your credit score when you apply for a buy now pay later product. Your credit score is important when it comes to applying for loans, or when you’re connecting services like gas or electricity at a new address. It’s a number that helps providers understand how likely you are to repay your debts.

It’s important that you understand credit reporting and your credit history. Make sure you can keep up with your buy now pay later repayments and avoid having any defaults recorded on your credit report.

Your budget

Having a realistic budget will help you take control of your money. Learn more about how to create and stick to a budget. You can also create a savings plan using our budget planner.

Fees and additional charges

Buy now pay later services don’t usually charge interest on the purchases you make. However, you should check if any fees apply to the service you’re using. Some services charge set-up fees or ongoing account fees. There can also be fees for missed or late payments. While no one plans on paying late, these fees can be significant, so you should keep them in mind.