A Complete Guide to Amazon Financing and Payment Plans

From fashion to furniture, you can buy almost anything on Amazon. There may be times when you want to spread your payments over time to cover your purchase. Fortunately, there are plenty of options, many of which can help you avoid costly interest and fees.

Does Amazon have payment plans?

Buyers might be surprised to learn that yes, Amazon has payment plans. Installment payment plans are offered through Amazon, Amazon-branded credit cards, or through a third party.

If you prefer a 0% financing option, an Amazon monthly payment plan, a 0% promotional offer via an Amazon store card, or a credit card with a 0% introductory APR will be your best bet.

Types of Amazon Payment Plans

Whether your goal is to spread out payments as long as possible or pay zero interest, there are several Amazon financing opportunities available.

Amazon Monthly Payments

One of the first programs to consider is Amazon Monthly Payments– i.e. if it is available for the particular product you are purchasing. The Amazon Monthly Payments program allows you to pay over four months.

With this program, all you have to do is select the monthly payment option at checkout (if you see it offered). Once selected, Amazon splits payments into five installments. The first payment is due when the product is shipped and includes all shipping, handling and taxes. There are four subsequent, equal payments billed to your account every 30 days, which is approximately 20% of the purchase price. Also, there are no interest charges or fees for using this payment option.

The beauty of this program is that it is not based on your credit score, which means no credit is required. Eligibility is based on your purchase history with Amazon and product price and is offered at Amazon’s discretion.

There are great benefits to taking advantage of monthly Amazon payments, but there are a few caveats to this program that may not provide the flexibility you need. Keep in mind:

  • This option is only available on certain products and you won’t see eligibility until you search for a specific product.
  • You can either pay in five installments or repay the amount sooner, but you cannot extend payments beyond four months.
  • You are limited to one product category or Amazon device per monthly payment plan. For example, a single electronic device or piece of furniture.

Amazon credit cards

Maybe you need a little more time to make payments for your purchase, or the product you need isn’t eligible for Amazon’s monthly payments. If so, Amazon Equal Pay or Amazon Special Financing via Amazon Store Card from Synchrony or Amazon Prime Rewards Visa Signature Card from Chase could be an alternative.

Amazon Equal Pay

If you have an Amazon Store Card or Amazon Visa credit card (or are opening a new account), you may be eligible for Amazon Equal Pay. This plan offers 0% financing and splits a purchase between six and 24 months of equal payments, without incurring interest charges.

As noted above, Amazon Equal Pay is available with Synchrony and Chase Amazon credit cards, but the terms and conditions are different depending on which card you have. For either, you won’t be charged interest as long as you make your payments on time and in full, and the full amount is charged when the item ships, but your installment payment is then part of your minimum monthly payment requirement.

Amazon Prime Rewards Visa Signature Card
Amazon Shop Card

Amazon special financing

Amazon special financing is simply a deferred interest payment plan, but it could be useful if you prefer to make larger payments all at once rather than equal monthly installments. With this financing option, you receive a 0% APR for six to 24 months (depending on the size of the purchase) and you can avoid interest charges by paying off the account balance before the end of the promotional period. Special financing is generally no longer available for Amazon Store Cardholders, but Chase Amazon Prime Rewards Visa Signature cardholders may also be eligible.

You are not required to make any minimum monthly payments, but you will be responsible for interest charges for the payment period if you do not pay the full balance by the final due date. Given the higher interest rates of these cards, your purchase could become expensive if you cannot meet the due date.

6 $150
12 $600
24 On certain purchases

Additional Amazon financing options

Citi Flexible Payment

Thanks to Citi Flexible Payment, those with an eligible Citi credit card can pay for select Amazon purchases over time with 0% APR or low interest, depending on your payment plan. For Amazon purchases over $50, Citi will allow you to split your payments into equal monthly payments between three and 38 months. To take advantage of this payment plan, simply select your Citi Card as your payment choice when making an Amazon purchase.

3 months $50 or more 0%
6 months $149 or more 0%
12 months $300 or more 0%
18 or 24 months $600 or more 6.99%
36 or 48 months $1,200 or more 8.99%

Pay it, plan it from Amex

Similar to Citi, there are flexible payment plans for American Express cardholders. The American Express Pay It, Plan It program offers the ability to split purchases of $100 or more over time. You will be charged a monthly fee, but there are no interest charges.

After making a purchase with your eligible American Express credit card, simply log into your Amex account and select the purchase you wish to cover with Plan It. An intriguing benefit of using this program is that you can use it for up to 10 purchases at a time (which total $100 or more).

Credit cards offering 0% intro APR offers

Cit and American Express are two examples of issuers that offer flexible payment plans, but another avenue to pay over time could be to choose a credit card with an introductory APR of 0%. Many credit cards attract new users with long promotional periods, so check out Bankrate’s list of the best 0% interest credit cards to find an option that’s right for you.

Buy now, pay later

Amazon Monthly Payment is a buy-it-now, pay-later (BNPL) option. However, if it is not offered on your product or does not meet your payment needs, you can choose a third-party BNPL provider. Not all businesses buy now, pay later, or work with Amazon, but here are a few to consider.

To affirm

To affirm offers several financing options, some of which allow up to 36 months for repayments and purchase amounts up to $17,500. Although Affirm offers flexibility, not all options include interest-free financing. Additionally, depending on the type of loan, Affirm may perform an extensive credit check, which could impact your credit score.

Klarna

With Klarna, you can download the app or add its browser extension to buy purchases now and pay later (over time). Klarna offers the option of splitting a purchase into four equal installments, paid every two weeks. Klarna only uses a soft credit check, so your credit score is not impacted. Be aware that there are late fees for late payments and you could be sent for collection for non-payment.

zipper

zipper, an app-based buy-it-now and pay-later service, lets you split your purchases into four equal installments over six weeks. No hard credit is needed with Zip either. While you typically avoid interest charges with a BNPL service, Zip charges convenience fees and late fees and will pursue collections if you fail to make your payments.

What is the right Amazon financing option for me?

It can be difficult to decide which Amazon financing option is right for you. Should you use Amazon Monthly Payments, an Amazon credit card program like Equal Pay or Special Financing, apply for a 0% APR intro credit card, or try a third-party buy now, pay later service?

The first decision you need to make is how long you actually need to pay off your purchase. Although the Amazon Monthly Payments option is convenient, it may not give you as much time to pay for the purchase as the Equal Pay or Special Financing options.

On the other hand, if you’re concerned about applying for firm credit or establishing another credit card in your name (which you might have trouble qualifying or paying on time), Amazon Monthly Payments or a Buy Now, Pay Later service may be the best choice.

Whichever option you choose, it is essential to know your repayment plan well in advance. You will also need to pay close attention to payment due dates, as you may incur late fees or other penalties.

The bottom line

Amazon shoppers may not realize how many choices they have to stretch out payments a bit more. Finding the right Amazon payment plan for your budget has never been easier – as long as you know your earning goal and can track payment due dates.

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