What is buy now pay later?

Buy now pay later or instalment plans are a form of payment that let you split the cost of a purchase into multiple repayments. You pay the first instalment up front, and the remaining instalments every few weeks.

Some buy now pay later services may charge you interest or fees to use them. Depending on which buy now pay later 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. 

NAB Now Pay Later doesn’t charge you any interest or fees and you can shop anywhere Visa is accepted.

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.