Sezzle is a “Buy Now, Pay Later” (BNPL) service that offers consumers an alternative way to pay for purchases. It allows individuals to split the total cost of an item into smaller, manageable installments rather than paying the full amount upfront. This payment solution aims to provide financial flexibility and make purchases more accessible, especially for those who prefer to manage their cash flow without using traditional credit cards.
How Sezzle Works
Sezzle primarily operates through a “Pay in 4” model, where the total purchase amount is divided into four interest-free installments. The first payment, typically 25% of the total, is due at the time of purchase. The remaining three installments are then scheduled every two weeks until the full balance is paid off, usually over a six-week period. Sezzle also offers a “Pay in 2” option, splitting the purchase into two interest-free payments, with the second half due two weeks after checkout.
For larger purchases, Sezzle may provide a “Pay Monthly” option, which allows for longer payment terms ranging from three months to four years, though these plans may include interest. Payments are automatically deducted from the debit card, credit card, or bank account linked to the user’s Sezzle account. While the standard Pay in 4 and Pay in 2 plans are interest-free, Sezzle charges fees for failed payments (typically around $10) and late payment fees (up to $15).
Using Sezzle for Purchases
To begin using Sezzle, consumers need to create an account and link a valid payment method, such as a debit card, credit card, or bank account. The sign-up process involves providing basic personal information and undergoing a soft credit check, which does not negatively impact a credit score. Once an account is set up, shoppers can find stores that accept Sezzle as a payment option, partnering with a wide range of online and in-store retailers.
When making a purchase, users select Sezzle as their payment method at checkout. For online shopping, this is typically an option presented alongside other payment methods. For in-store purchases, Sezzle offers a virtual card that can be added to mobile wallets like Apple Pay or Google Pay, allowing for tap-to-pay functionality. After selecting Sezzle, the system provides an instant approval decision, and the first installment is processed.
Benefits of Using Sezzle
Using Sezzle offers several advantages for consumers seeking flexible payment solutions. A primary benefit is financial flexibility, allowing individuals to spread the cost of a purchase over time without a large upfront payment. This can be particularly helpful for managing budgets and making larger items more accessible.
Sezzle’s interest-free installment plans for its Pay in 4 and Pay in 2 options mean consumers can avoid the interest charges often associated with traditional credit cards. Additionally, Sezzle enables immediate access to purchases; once the first installment is paid, the item is shipped or can be taken home.
Important Considerations When Using Sezzle
While Sezzle offers convenience, there are important factors consumers should consider. The standard Pay in 4 plan typically does not report on-time payments to major credit bureaus, meaning it generally won’t help build credit history unless a user opts into the “Sezzle Up” program. If enrolled in Sezzle Up, on-time payments can positively impact credit, but missed payments can negatively affect it.
Spending limits with Sezzle are dynamic and personalized, based on factors like payment history and duration of use. These limits can increase with consistent, on-time payments, but missed payments can lead to a decrease in spending power or account suspension. A payment attempt might fail due to insufficient funds or an expired payment method. Sezzle provides reminders and a grace period, but consistently missing payments can lead to account deactivation and collection efforts, potentially harming credit.