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If you're looking to take advantage of the upcoming Boxing Day sales but want a bit of extra time to pay off your purchases, Zip Pay lets you buy now and pay later.
Find out how it works and if it's right for you this Boxing Day.
Zip Pay is a "buy now, pay later" service that gives you access to an interest-free line of credit up to $1,000 that you can use at participating merchants and online vendors. You won't need to pay any establishment fees or interest on your purchases.
Once you have made a purchase using Zip Pay, you then have until the end of the next month to pay off your balance. You can then make repayments on a weekly, fortnightly or monthly basis, but you will need to make a minimum monthly payment of $40. There is a $6 monthly account fee, but you won't have to pay this if you pay off your entire balance each month.
You will also need to pay a $5 late fee if you do not make your minimum repayment within 21 days of the due date.
You can use Zip Pay at thousands of retailers, both online and in-store. These include the following:
See the full list of Zip Pay vendors
You won't pay any fees as long as you pay off your purchases by the end of the following month.
Example
Roger has an approved Zip Pay credit account for $1,000. On Boxing Day, he purchases a TV for $700 using his Zip Pay account. He receives a statement on 1 January (i.e. the start of the next month), which shows that he owes $700 on his Zip Pay account. He then has until the end of January to repay the $700 in order to avoid the $6 account fee. He repays the full amount on 15 January, which means he does not have to pay any fees on the purchase.
If you plan on using a "buy now, pay later" provider, you should always have a plan for how you will pay off any purchases you make. While some providers make you repay the purchase in set instalments, Zip Pay gives you until the end of the following month to pay off your balance before charging a fee.
However, it is important to make sure you have enough to cover your purchases to avoid paying account fees and late fees. You can only use Zip Pay to cover purchases up to your approved line of credit, which will range from $350 to $1,000.
You will need to meet the following criteria to apply for a Zip Pay account:
You will need to provide additional personal and financial information and will need to pass Zip Pay's credit check. Depending on your situation, you may be approved for a line of credit from $350 up to $1,000.
If Zip Pay doesn't seem suitable, there are a number of other "buy now, pay later" providers that offer different payment schedules and fee structures that may better suit your needs.
You may also consider the following options:
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