If you’re planning on using buy now, pay later (BNPL) to cover your holiday shopping this year — and half of shoppers are, per PayPal — know that there are alternative financing options out there offering similar flexibility.
While BNPL helps you pay for things over time, it can encourage overspending and it doesn’t offer the same protections or perks as credit cards. Here’s what else you can use to make your holiday spending easier.
3 alternatives to BNPL this holiday shopping season
0% APR cards
Do you like the idea of breaking up payments the way BNPL offers? If so, a 0% APR credit card can be a smarter alternative — especially if you’re disciplined about paying on time.
With BNPL, your payments are split typically over a short period, like six weeks, but you don’t get the same consumer protections and perks you would with a credit card. A 0% APR credit card, on the other hand, gives you the flexibility to spread out your holiday purchases interest-free for a much longer period — often 12 to 18 months — while also offering their usual benefits like purchase protection and the ability to earn rewards.
For example, the no-annual-fee Wells Fargo Active Cash® Card offers an intro APR for 12 months on new purchases and qualifying balance transfers, plus cardholders earn an unlimited 2% cash rewards on their spending. There’s also a welcome bonus of $200 cash rewards after spending $500 in purchases in the first three months.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High flat-rate return on purchases
- Intro-APR for purchases and qualifying balance transfers for a year
- No annual fee
- Cell phone protection
- Has a foreign transaction fee
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Valuable welcome bonus and high rewards rates
- Long intro APR for purchases and balance transfers
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
- Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.74% – 28.24%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
With a 0% APR card, you’ll get a single monthly statement, and as long as you pay at least the minimum on time each month and set yourself up to pay off the full balance before the 0% period ends, you’ll avoid interest entirely.
Credit card ‘pay over time’ features
Many credit card issuers have their own built-in, pay-over-time programs, which allow you to split eligible purchases into smaller payments directly through your credit card account. Opting to do this sort of similar BNPL format through your credit card ensures you still earn rewards and keep your spending organized all in one place. Just make sure you read the terms and conditions regarding any interest or fixed monthly fees. This may only be allowed on eligible purchases, too.
While this is essentially another “form” of BNPL, your payments are instead in one place and you’re still earning credit card rewards and perks. There’s a Chase shopping portal, for instance, that you can take advantage of to earn extra rewards when doing your holiday shopping online, and score special offers.
Earn valuable welcome bonuses with a Chase card
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Savings accounts
Of course, there’s the good old-fashioned way of saving up for your holiday purchases to avoid BNPL altogether.
We know it’s already mid-November, so it’s important to pinpoint what actually you want to buy, the total cost and your timeline. Divide that total by how many weeks you have left and you have your weekly savings goal. Deposit that cash into a high-yield savings account, where you earn more interest than in a traditional savings account. Both the EverBank Performance Savings and UFB Portfolio Savings offer competitive rates and no monthly fees.
EverBank Performance℠ Savings
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
You may conduct up to 20 external transfers per day, subject to a maximum of 10 transfers that pull deposit funds from a linked external account into your accounts at EverBank and a maximum of 10 transfers that send deposit funds from your accounts at EverBank to a linked external account, and up to 50 total external transfers per month.
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Excessive transactions fee
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Overdraft fees
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Offer checking account?
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Offer ATM card?
Pros
- Strong APY
- No minimum balance required
- No monthly fees
- Free ATM card and no ATM fees
Cons
- No physical branch locations
- Strong APY on savings balances
- No minimum deposit or balance required for savings
- No monthly fees
- Free ATM card with unlimited withdrawals
- Free transfers between direct deposit accounts
- Online and SMS banking available
- Mobile check deposits
- Security features include fraud and anti-virus protection, SSL encryption for connection, automatic logouts after inactivity
- Potential overdraft fee, though overdraft protection is offered
- Certain types of withdrawals and transfers may be limited
- $10 excessive transaction fee per transaction over 6/month
- No physical branch locations
And since you don’t have a long savings runway, you can also free up some cash by canceling subscriptions for a few months (think streaming, apps, gym, etc.), cooking at home and delaying any outside big purchases.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
