Can You Pay A Bill With Afterpay?

Afterpay is a popular buy now pay later service that allows users to split purchases into 4 interest-free payments over 6 weeks. With over 13 million users in the US alone Afterpay’s popularity is soaring. But can you use Afterpay to pay your bills? Let’s take a look.

How Afterpay Works

When checking out with Afterpay, your purchase total is split into 4 equal payments. You pay the first installment upfront, then the remaining 3 installments every 2 weeks. Afterpay charges no interest, but you may be charged a late fee of up to $8 if you miss a payment.

Afterpay approves purchases between $35-$1000 depending on your purchase history. The maximum purchase amount increases over time as you demonstrate repayment ability. Afterpay does not perform credit checks or report payment activity to credit bureaus.

Paying Bills With Afterpay

Afterpay is designed for online and in-store purchases, not bill payments. However, with Afterpay’s mobile app you can pay some bills in-person using the Afterpay Card

The Afterpay Card allows you to spend up to your account limit, similar to a credit card. You can add the Afterpay Card to services like Apple Pay and Google Pay for easy in-person spending.

So in theory, you may be able to pay certain bills in-person using the Afterpay Card, if the company accepts Afterpay. But for the most part, Afterpay is not intended for paying bills.

What Bills Can You Pay With Afterpay?

• Rent – No. Afterpay is designed for purchases, not bills.

• Utilities – Possibly. Afterpay’s “Retro” plan may allow splitting eligible debit purchases into 4 payments. But utility companies would need to accept Afterpay.

• Credit Cards – No. You can only load the Afterpay Card, not transfer balances.

• Loans – No. Afterpay is for purchases, not personal loans.

• Insurance – No. Afterpay is not designed for financial services.

• Subscriptions – No. Afterpay is made for one-time purchases.

• Medical Bills – No. Healthcare providers are unlikely to accept Afterpay.

Can You Pay Bills With Other Buy Now, Pay Later Services?

Afterpay is not the only buy now, pay later option. Competitors like Affirm, Klarna, and Zip also offer installment plans. However, like Afterpay these services are primarily for online shopping – not bills.

Buy now, pay later is designed to break up purchases into manageable payments. Using these services for bills is risky, as you can end up paying late fees. Missed payments also get reported to credit bureaus, impacting your credit score.

If you are struggling with bills, buy now, pay later plans are not an ideal solution. Traditional payment plans directly with the billing company, debt management plans, or credit counseling may be better options.

Tips for Paying Bills With Afterpay

While not recommended, here are some tips if you do attempt to pay bills using Afterpay:

• Only use Afterpay for bills you can comfortably afford to pay every 2 weeks. Don’t take on debt you can’t handle.

• Avoid using a credit card to pay Afterpay, as this defers interest charges. Use a debit card instead.

• Pay your Afterpay bill 1-2 days early to avoid late fees if there are processing delays.

• If approved for a higher purchase limit, be cautious about overspending. Only spend what you can realistically budget to pay.

• Treat the Afterpay Card like a debit card, not “free money”. Overspending can lead to debt.

• Have a backup payment plan if you can’t pay Afterpay. Missed payments hurt your credit and Afterpay account standing.

The Risks of Using Afterpay for Bills

While paying bills with Afterpay may seem convenient, there are risks to be aware of:

• High fees – Just one $8 late fee can negate any “savings” from an interest-free plan. Late fees quickly add up.

• Credit damage – Missed Afterpay payments get reported to credit bureaus, hurting your credit score.

• Overspending – Easy installment plans make it tempting to overspend. Only buy what you can realistically afford.

• Debt cycles – If you continually take on debt with Afterpay and struggle to pay it back, you can end up in a debt trap.

• Account suspension – If you miss too many payments, Afterpay will suspend your account indefinitely.

The bottom line is Afterpay is best used for budget-friendly online purchases, not managing bills and debts. More affordable payment plan options are available from billing companies and financial advisors.

When to Avoid Using Afterpay for Bills

While Afterpay can be used responsibly for shopping, avoid relying on it for bills if:

• You are already struggling with debt and living paycheck to paycheck
• You have a low credit score or history of missed payments
• You don’t have money budgeted to pay the installments
• You are using Afterpay to pay recurring bills, loans, or credit cards
• You find yourself taking on more debt to keep up with payments
• You frequently incur late fees

If any of the above apply, Afterpay will likely cause more financial stress than it alleviates. Explore other bill payment options tailored to your situation.

Afterpay is designed for ecommerce shopping, not paying bills. While the Afterpay Card provides some potential bill payment ability, it comes with risks and fees. Afterpay is best suited for budget-friendly, one-time online purchases. For recurring bills and debts, discuss options with financial advisors to find a sustainable plan tailored to your needs. With responsible use, Afterpay can provide flexibility – but it shouldn’t become a debt crutch.