What is Layaway?
For years layaway plans have given consumers an alternative to paying cash or using credit. Layaway is when retailers hold merchandise in reserve until a person can pay for it in full.
It’s always important to ask questions about layaway plans and know what the refund policy is anytime you’re considering the layaway option.
Things to Know About Layaway
There’s no need to rack up credit card bills and stress over making a big purchase! Whether you need a new laptop for school or work, are doing Christmas or birthday shopping, or simply want to spoil yourself a bit, layaway is a great option for any consumer. Here are a few ways layaway can benefit you:
Benefit 1: Stick to Your Budget
Utilizing layaway is a great option whenever you’re planning to make a major purchase. Layaway allows you to stick to a budget and spread the cost of purchases over several payments.
Benefit 2: No Interest
Unlike credit cards, layaway plans don’t acquire interest so you won’t have to worry about going into a costly amount of debt.
Benefit 3: Lock in a Price
Layaway lets you lock in a price! You won’t have to worry about losing the item you’re looking to purchase or the price going up. Especially if you’re getting a great sale price.
Myths About Layaway
Layaway options can be a bit confusing, especially if you’re used to paying for large purchases with credit cards. There are a few myths about layaway that might cause you to shy away from using them. Here are some of the most common myths when it comes to layaway:
Myth 1: High Fees
It can be easy to see why you might be worried about fees with layaway. However, with the buy now pay later option, in most cases, there aren’t any fees attached. It’s as simple as putting a deposit down and paying that initial price and only that price.
Myth 2: Credit Score
As long as you keep up with monthly payments or can settle your entire installment agreement amount before the payment period ends, you won’t have to worry about any negative impact on your credit score. With layaway, there are no hard credit checks either!
Myth 3 Lengthy Process
Because layaway options don’t require credit checks or long applications like credit cards, it doesn’t take tons of paperwork to complete. Your financial history won’t be scrutinized with a fine-tooth comb either. Layaway applications are a simple process that generally only takes a few minutes to complete.
Layaway All Day
Stop stressing over that big purchase! You can keep your budget in check and your credit score right where you want it with layaway. With no interest, no hard credit checks, and no lengthy applications, layaway could be the perfect option for you to get just what you need when you need it!