4 Reasons Not to Use Buy Now, Pay Later for Your Prime Day Shopping

Posted on July 7, 2025 by resourcefulman

Prime Day 2025 runs from Tuesday, July 8 through Friday, July 11, and Lifehacker is sharing the best sales based on product reviews, comparisons, and price tracking tools.

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Amazon’s biggest sale of the year is here. As you browse the deals during Amazon’s massive Prime Day , which runs from July 8 to 11 for twice as long as usual, you might be tempted by Amazon’s “affordable monthly payment plan.” Also known as “buy now, pay later” (BNPL), the premise is enticing: Buy what I need now and pay later, “ on my own schedule ?” Yes, please! But as convenient as it sounds, you might want to think twice before using the “buy now, pay later” options for Prime Day.

While BNPL plans allow you to pay off your purchases in installments without interest, they come with a cost that can easily outweigh any Prime Day discounts. According to a recent Bankrate survey , at least 16% of consumers using BNPL have missed payments, and 24% said the option has led to overspending. Let’s take a look at the hidden costs of BNPL and why you’re better off paying upfront for all your Prime Day deals.

How does Amazon’s buy now, pay later option work?

Amazon doesn’t actually have its own “buy now, pay later” program. Instead, they partner with a major BNPL provider called Affirm. When you check out on Amazon, you can choose Affirm as your payment method. The process is simple: You select your items, select Affirm at checkout, fill out a quick application, and get an instant decision on your credit. Individual transactions initiated through Affirm are capped at $25,000, with a daily maximum of $100,000 for multiple purchases — but hopefully that won’t happen on a single Prime Day, right? ( Really?! )

The main feature of these programs is the ability to “pay at your own pace.” If you are required to make a down payment, it must be made at the time of the transaction. From that point on, your first monthly payment is usually due the month after the purchase is processed. Each subsequent payment is due the following month, on the same day of the month.

You can choose your own schedule, typically spanning 3, 6, 12, or 24 months, depending on the purchase amount and your creditworthiness. Unlike traditional credit cards, Affirm shows you the exact payment amount and total cost up front, and has no hidden fees or compound interest. (More on that below.)

Of course, you need a separate Affirm account in addition to your Amazon Prime membership . The application process requires basic information, including your name, mobile number, date of birth, and the last four digits of your Social Security number. Affirm initially runs a soft credit check that doesn’t affect your credit score, although they may run a hard inquiry for some loans.

Now let’s look at four key risks to consider before hitting the BNPL button:

This makes impulsive spending easier.

The ease of this type of financing can make expensive purchases seem more affordable than they really are. When you can buy an $800 tablet for “only $67 a month,” it’s easy to lose sight of the overall cost, as well as the big financial picture. In turn, this makes it too easy to spend on things you might not otherwise buy. It’s best to take a breath, step away from your shopping cart, and set up alerts to get notified when a product hits a price you’re comfortable with.

What do you think at the moment?

You may face unexpected interest charges.

The biggest danger with BNPL is missing one of the recurring payments. Sure, the plans are advertised as interest-free financing. However, in many cases, that 0% APR offer only applies if you pay off the entire balance by a certain date. If you have even $1 left over after that date, interest starts accruing at rates up to 36.99% in some cases. So beware, buyer — it’s easy to unintentionally end up with big interest charges if you’re not vigilant and don’t pay off the balance before the promotional period ends. That Prime Day deal won’t look so affordable anytime soon.

This may affect your credit score.

Currently, BNPL plans don’t directly impact users’ credit scores. But this fall, FICO says it will begin including BNPL payment history in credit score calculations. So if you miss payments or default on installment plans, it will hurt your credit score, making it even harder to get approved for a mortgage, car loan, credit card, or other financing in the future. Neither of those risks is worth the savings of Prime Day.

You will have limited purchase protection.

When you use a credit card, you get valuable purchase protections like extended warranties, price protection, and the ability to dispute fraudulent charges. BNPL plans typically don’t include these protections. That means you’re on the hook if something goes wrong with your Prime Day purchase and the retailer doesn’t fix it. The smarter move is to only buy what you can afford during the Amazon Prime Day event, no matter how tempting those deals may seem.

While installment plans are useful if you really need to finance something big, it’s best to avoid borrowing for everyday expenses. It’s better to wait for a good price on something you really need and can afford to pay for right now. To that end, keep checking back for more Lifehacker Prime Day content to find the best deals available during the summer sale.

Looking for other Prime Day sales? Retailers like Walmart, Best Buy, and Home Depot are all running Prime Day sales that are especially helpful if you don’t have Amazon Prime.

Walmart’s Prime Day sale starts at midnight on July 8 and includes discounts of up to 50% . It’s an especially good option if you have Walmart+.
Best Buy’s Prime Day sale , “Black Friday in July,” runs through Sunday, July 13, and offers some of the best tech sales online . It’s an especially good option if you’re a My Best Buy “Plus” or “Total” member.
Home Depot has extended its July 4 sale through at least July 9, competing with some of its own great deals . It’s a particularly good option if you’re looking for power tools, appliances, or outdoor gear.