Four Reasons Not to Use Buy Now, Pay Later During Amazon Prime Day.

The Amazon Prime Day 2026 sale runs from Tuesday, June 23rd, through Friday, June 26th—a month earlier than usual. When adding items to your cart during the sale, you might be tempted by Amazon’s “affordable monthly payment system.” Also known as “buy now, pay later” (BNPL), it’s tempting: buy what you need now and pay later, ” at your convenience .” But as convenient as it may sound, you should think twice before using “buy now, pay later” options, whether during Prime Day or any other time.

While BNPL plans allow you to pay for your purchases in installments without interest, they come with costs that can easily outweigh any significant discounts. Let’s explore the hidden costs of BNPL and why it’s better to pay for all your Prime Day purchases upfront.

How does Amazon’s Buy Now, Pay Later service work?

Amazon doesn’t actually have its own “buy now, pay later” program. Instead, they’ve partnered with a major BNPL provider, Affirm. When you check out on Amazon, you can select Affirm as your payment method. The process is simple: you select your items, choose Affirm at checkout, complete a quick application, and receive an instant credit decision. Individual transactions initiated through Affirm are capped at $25,000, with a daily maximum of $100,000 across multiple purchases—but surely your Prime Day spending will be much lower, right? ( Right?! )

Instead of providing a line of credit, the main advantage of these programs is the ability to “pay at your own pace.” If a down payment is required, it is made at the time of closing. After that, the first monthly payment is typically 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 payment plan, typically 3, 6, 12, or 24 months, depending on the purchase amount and your creditworthiness. Unlike traditional credit cards, Affirm displays the exact payment amount and total cost upfront and claims to have no hidden fees or compound interest. (More on that below.)

In addition to an Amazon Prime subscription , you’ll need a separate Affirm account. To apply, you’ll need to provide basic information, including your name, phone number, date of birth, and the last four digits of your Social Security number. Affirm conducts an initial credit check, which doesn’t affect your credit score, although a full credit check may be performed for some loans.

BNPL (buy now, get later) plans are useful if you really need to finance something large, but it’s best to avoid borrowing for everyday expenses whenever possible. Let’s look at four key risks to consider before hitting the BNPL button:

This makes impulse purchases easier.

The simplicity of this type of financing can make expensive purchases seem affordable, even though they’re not. When you can buy a $1,000 tablet “for just $67 a month,” it’s easy to lose sight of the total cost and your overall financial situation. This, in turn, makes it easy to overspend on things you wouldn’t otherwise buy. It’s best to take a deep breath, step away from your shopping cart, and set alerts to receive notifications when the price of an item becomes affordable.

You may be charged unexpected interest.

The biggest danger with BNPL (Buy Now Pay Later) is missing a regular payment. While these plans are marketed as interest-free, in many cases the 0% interest offer only applies if you pay off the entire balance by a certain date. So be careful—it’s easy to inadvertently incur large interest charges if you’re not careful and don’t pay off your balance before the promotional period ends. Soon, that Black Friday deal won’t seem so great anymore.

This may affect your credit score.

Contrary to popular belief, buy now, get later (BNPL) purchases can now impact your credit score . Specifically, in the case of Amazon, all payments through Affirm (including on-time, late, and defaulted payments) are now reported to the credit bureau Experian. Therefore, if you miss payments or violate the terms of your installment plan, it will negatively impact your credit score, making it even more difficult to obtain a mortgage, car loan, credit cards, and other types of financing in the future.

You will be provided with limited protection when you purchase.

Using a credit card gives you valuable guarantees on your purchases, such as an extended warranty, price protection, and the ability to dispute fraudulent charges. BNPL (buy now, get later) plans typically don’t include these guarantees. This means you’re responsible if something goes wrong with your Prime Day purchase and the merchant doesn’t make it right. It’s best to only buy what you can afford during the sale, no matter how tempting the deals may seem.

While payment plans are useful if you really need to finance something large, it’s best to avoid loans for everyday expenses. It’s better to wait for a better price on something you really need and can afford right now.

Result

If Amazon Prime Day offers a discount on an expensive item but it’s still out of your budget, ask yourself two questions before using BNPL services through Affirm:

• Is this really an essential purchase? BNPL should only be used for absolutely necessary purchases that you can’t afford right now but will be able to afford in six weeks. Therefore…

• Will I be able to pay off this debt within six weeks? When a large payment is broken down into smaller installments, you may find yourself spending more than you can afford in the long run because you “think” you can. Keep track of how much you’re actually spending—especially if you’re planning multiple “Buy Now, Get Later” purchases—and how that will impact your overall budget going forward.

For more discounts and promotions, stay tuned to all of Lifehacker’s Amazon Prime Day coverage .

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