Buy now, pay later

Buy now, pay later is a type of credit. It lets you delay or split your shopping payments.

Check your lender is authorised by the Financial Conduct Authority (FCA)

It could be a scam if you’re asked by a lender to pay a fee before you’re offered a loan. 

It might also be a scam if you’re asked to pay the fee quickly or in an unusual way - like with vouchers or with a money transfer.

You should always check if your lender is authorised by the FCA before you take out a loan. If they’re authorised, they’ll be on the Financial Services Register.

You can check your lender is on the Financial Services Register on the FCA website.

You might be asked by a credit broker to pay a fee before they help find you a loan. There are rules they must follow, and you should also always check they’re authorised by the FCA.

You can check your rights when you use a credit broker.

How buy now, pay later works

Your provider must tell you how your payment instalments work before you agree to anything. You can find these details in the agreement they have sent you. You should not be charged interest when you use buy now, pay later. 

Checking if you can afford buy now, pay later

Providers must check if you can afford to borrow before offering you an agreement. 

The provider might do a hard credit check on you. This means it’ll be recorded on your credit history that a credit check was done. They look at your credit history to see if you can manage the repayments.

If you miss a payment

You’ll probably get charged a fee if you miss a payment. Buy now, pay later providers set their own late fees. You should check what the late or missed payments fees are before you sign the agreement.

The provider has to tell you before they charge you a fee. They’ll also tell you if they’re going to report you to a credit reference agency. If you miss any payments, you might lower your credit rating score.

Rules for older buy now, pay later agreements

If you have buy now, pay later credit that started before 15 July 2026, the regulations will not apply to your agreement.

If you’re struggling to repay

Contact your buy now, pay later provider if you’re having trouble with payments. They should help you deal with your repayments.

For example, they might offer to:

• reduce or pause your payments for a limited time

• help you work out a plan to pay what you owe

Your buy now, pay later provider should give you time to consider your options and get help with your debts. They should pause your account if you’re waiting for your circumstances to get better. For example, you might be waiting for your first payment of wages or benefits. 

If your buy now, pay later provider pauses your account, it’s a good idea to use this time to get debt advice.

If you are not sure how to repay your loan, you can chat with us online about debt.

How to make a complaint

Complain to the Financial Ombudsman Service if you’re not satisfied with your buy now, pay later provider's response.