Extra time to pay off larger purchases without incurring any interest or other fees
The buy-now-pay-later (BNPL) industry has never seen a competitor like Splitit before. It is unique in that there is no requirement for a credit check, there is no interest, and there are no fees associated with using it; instead, it uses the available credit that you have on your existing credit cards.
Although you won’t be charged any interest for using the service, if you don’t clear your balance on the credit card you use for Splitit every month, you may be subject to interest charges from the card’s issuing bank.
The popularity of installment loans and other forms of BNPL has skyrocketed in recent years. According to research conducted by Kaleido Intelligence, it is anticipated that consumer spending using BNPL services will reach $680 billion globally by the year 2025. This represents a 92% increase over the totals for 2019.
Find out more about how using Splitit can simplify the process of paying for large purchases, as well as which stores provide the service.
How does the Splitit program function?
Splitit is not like any of the other BNPL services or point-of-sale installment loans in that there is neither an application nor a credit check required. Using your credit card information, Splitit will generate recurring installment payments and charge them to your account over a predetermined number of months. Therefore, as an alternative to making a one-time payment of $750 for a TV, you might make payments of $125 over the course of six months.
Splitit will first verify that you have sufficient funds in your account to cover the whole cost of the transaction that you just made. Splitit will then bill you for the initial payment of the purchase. Splitit has the ability to place a pre-authorization hold on your account that is equal to the amount of your available credit, and this hold may show up as a pending transaction on your statement. The authorized amount will continue to decline until the balance is paid in full, regardless of how many further payments you make.
Take note of the maximum amount of available credit in your account. Consider the following scenario: you have a credit limit of $1,000 and you want to buy something from Splitit for $800, with the first payment being $200. Until you make your subsequent payment, Splitit will hold onto $600 of your available credit limit.
When using Splitit, is there a minimum order quantity that must be met?
The minimum charge amounts and the number of monthly installments are both determined by the individual e-commerce enterprises that use Splitit as their payment processing solution.
Is There a Maximum Order Quantity That Can Be Placed Using Splitit?
The maximum purchase amount that can be made via Splitit is determined by the merchant.
Do Products That Are Purchased Using Splitit Ship After the Initial Payment Is Made?
Yes. Splitit will initiate the first charge on your credit card for the purchase of a product as soon as the item has been delivered.
Is Bill Paying Possible Through Splitit?
No. Splitit can only be used for purchases made with merchants who are part of its partner network.
Is There a Cap on the Credit Card?
You are able to make purchases up to the limits that have been set by specific retailers for Splitit transactions or the available credit that you have on your credit card.
How Can I Raise the Limit on My Credit Card?
Splitit does not provide you with a credit limit, but each of your individual credit cards does have its own credit limit. You can ask your issuer to raise your credit limit, or you can wait for an increase that your issuer may give you automatically.
Is There a Chance That Splitit Could Affect Your Credit Score?
Your credit score will not be impacted in any way by using Splitit.
Does Splitit Perform a Credit Check?
Splitit does not conduct any kind of credit check on its users. You can use Splitit as long as you have enough available credit on the Visa or Mastercard you use to make the purchase to pay for the whole thing.
Is your activity on Splitit reported to any of the major credit bureaus?
Splitit does not report to the credit bureaus, but nevertheless, the credit card on which the installment charges appear will most likely disclose your payment activity. Splitit does not report to the credit bureaus.
In order to use Splitit, what minimum credit score is required?
If you want to use Splitit, it doesn’t matter what your credit score is, as long as you have a valid Visa or Mastercard.
Does Splitit levy any interest charges?
Splitit does not charge interest. In the event that you end up carrying a balance on your credit card, the issuer of your card will, of course, charge you the standard purchase interest rate.
Does Splitit have any fees to pay?
The consumer is not required to pay any fees in order to make use of Splitit’s services.
You are not subject to any additional fees if you pay off your Splitit purchases early. To finish making your payments, you will need to either log in to the Splitit shopper site or get in touch with customer support.
Is it safe to use Splitit?
Splitit’s platform is PCI–DSS level 1 compliant, which means it uses the standard security measures in the industry to keep your data safe.
In terms of your own finances, Splitit gives you additional time to pay off a significant purchase without requiring you to pay interest on the money you spend. Nevertheless, you should avoid using Splitit to make purchases that are more expensive than the amount you can afford to pay back. If you do that, your credit card company will charge you interest on any transactions made through Splitit that you made.
Be advised, too, that a full authorization hold will be placed on your credit line; this hold will be released as you make payments toward the balance, but it will remain at its maximum amount. It is possible that you will wind up tying up a significant chunk of your credit limit for an extended period of time, but this will depend on how much available credit you have.
Who Is Willing to Accept Splitit?
High-end retailers, luxury brands, and boutique stores in the furniture, jewelry, electronics, outdoors, music, and other specialized categories are typically the types of businesses that offer Splitit’s BNPL service to their customers. There are almost 200 online merchants located in North America that are listed in the global store directory. These retailers include:
- James Allen
- Excellence Par Excellence
- Excellent Evaluations
How to Make Use of Splitit Online
You can access the Splitit payment option directly on the merchant’s website during the checkout process. This is different from some BNPL suppliers who want you to sign up or offer an app.
It is possible that the procedure will change slightly depending on the shopper, but in general, you will select Splitit as your method of payment, and then choose the number of installments you would like to have. In the end, it is up to the retailers to decide how many months of financing they will make available.
For instance, Canyon, a high-end bicycle company, offers payment plans ranging from two to six months, whereas DreamCloud, a mattress firm, offers payment plans ranging from two to twelve months.
Splitit enables businesses to accept payments in any number of installments ranging from two to 36.
How to Make the Most of Splitit in Retail Settings.
You are unable to utilize Splitit in retail locations. Every purchase must be made through the website.
How exactly does the processing of returns work when using Splitit?
You will need to coordinate your efforts with the store where you made your purchase in order to return an item and receive a refund for it. They will tell Splitit if they decide to cancel the order or accept a return.
Splitit will then cancel any remaining payments and reimburse you for any amounts that you have already paid if the transaction is canceled or a return is accepted. Splitit will send you an email telling you when to expect the credit to be added to your account.
How do I go about paying for Splitit?
You are just continuing to make payments to the credit issuer in the same manner that you have in the past, rather than making payments to Splitit in the same manner that you would with other types of installment options. The first payment installment will be charged to your card on the day that you make your purchase. Thereafter, on the same day of each month for the number of payments that you selected, you will be charged. You cannot change your payment date.
You will not be able to utilize Splitit until you pay for your purchase with a Visa or Mastercard. It is no longer possible to pay using debit cards, despite the fact that this was once an option.
If I don’t pay my share of the bill, what will happen?
Due to the fact that you do not actually pay Splitit, there are no penalties for late payments, and Splitit will not send your account to collections. Nevertheless, if you are late with a payment on your credit card, you will likely be assessed a late charge, and this will have a bad influence on your credit.