Ulta now accepts Afterpay making it easier than ever before to grab the latest and greatest beauty. But at what cost to you? Nothing. It’s actually a fairly simple system that will break down the total amount of your purchase into 4 easy to pay installments much like QVC and HSN does with their easy pay option. It’s a nice feature and it does make you feel a little bit better about indulging but as with all credit options you have to be leveled headed and smart about the purchases you make. Don’t go spending $200 on makeup if you don’t have $200 to spend even if it is broken into four easy to pay options that’s still money you might need for something way more important in your life.
Afterpay doesn’t charge interest however, they will charge a late fee if you fail to pay your installment. Afterpay uses a factoring system and the interest they make is actually from the retailer that offers Afterpay and not from the consumer making the purchase. Afterpay can actually make up to 30% interest on a purchase but it isn’t factored into your costs using it as it comes from the loan that Afterpay buys out from the retailer. Another words, if you make a $100 purchase from Ulta, Afterpay buys that loan from Ulta for $96 and in turn lends you $100 to make the purchase therefore allowing them to pocket $4. The “interest rate” gets higher depending on the amount Afterpay loans to you.
Afterpay can be nifty because it doesn’t do credit checks so most anyone can use it. But this also makes it dangerous as it offers these loans to people as young as 18. Just remember when it comes to Afterpay the option can be cool but use it responsibly and never overspend on something you can’t afford to buy.