Zip Buy Now, Pay Later: 2024 Review - NerdWallet (2024)

Zip — formerly known as Quadpay — offers “buy now, pay later” payment plans mostly through its mobile app.

You can use Zip pretty much anywhere Visa is accepted, making it widely available for online and in-store purchases.

» COMPARE: The best buy now, pay later apps

Zip at a glance

Zip Pay in 4

Payment structure

Pay in four installments, due every two weeks.

Amount due at checkout

First installment (one-fourth of the purchase price).

Interest

No interest, but may charge an automatic installment fee.

Availability

Available for online and in-store purchases of $35 to $2,500.

How does Zip work?

Zip offers one payment plan to its users — a classic pay-in-four — which splits the total price of your order into four equal installments that are due every two weeks, with the first payment due at checkout.

For example, if your total is $100, you’ll pay $25 at checkout. The three remaining $25 payments will be due every two weeks until you’ve paid the full $100. These payments are automatically billed to the debit or credit card you used to make the original payment. You can also make payments manually or early.

Zip may charge an installment fee for each payment. This fee is typically $1.50 per installment for a total of $6 per order, but it can be as high as $7.50 per order, depending on the purchase price and Zip product used.

Zip also charges a late fee up to $7 if you miss a payment.

How to get approved for Zip

To be eligible for Zip, you’ll need to be at least 18 years old, live in the U.S. and be able to provide a valid phone number, Social Security number, mailing address and payment method.

Zip says it takes into account numerous factors when making an approval decision, though it doesn’t specify further.

🤓

Nerdy Tip

One of the best ways to get approved for a BNPL loan is to show a history of on-time payments with that provider. Consider using BNPL to make a small purchase first, then pay off your loan on time or early. This may help you get approved for a slightly larger purchase in the future.

Does Zip check credit?

Zip checks your credit with a soft credit pull, which doesn’t hurt your credit score. Though there’s no minimum requirement, Zip may consider your credit score as part of your application.

How to use Zip

Download the Zip app

The easiest way to use Zip is to download its mobile app. Once you’ve downloaded the app, you’ll verify your mobile number and create an account by filling out a short application and adding a payment method. If approved, you’ll be shown your spending limit with Zip.

Shop with Zip online and in stores

You may also see a Zip button on some retailers’ online checkout screens, meaning you can opt into Zip without leaving the retailer’s website.

If you want to shop in person with Zip, you’ll need to find the “in-store” tab on Zip’s mobile app, enter a total purchase price and receive access to a virtual card you can use to pay at the counter.

Is Zip safe?

Zip is a safe and reputable provider of BNPL loans. Weigh the pros and cons below to decide whether Zip is the right fit for you.

Where Zip stands out

Free payment rescheduling: While some BNPL lenders won’t let you change your payment due date, Zip lets you reschedule one payment for free each calendar month. Additional payment changes made within the same month include a $2 fee, which is a lower rescheduling fee compared with other providers. This flexibility can help users avoid a fee altogether or pay a smaller fee overall — for example, a $2 rescheduling versus a $7 late fee.

Pauses account after missed payment: If you miss a payment, Zip automatically pauses your account and won't approve you for additional orders until your missed payment is complete. This can prevent you from incurring more debt. Once you catch up, Zip reactivates your account.

Where Zip falls short

Charges installment fee: Zip’s installment fee is essentially interest, since it’s added automatically to the total loan amount. None of the other major BNPL providers charge this type of fee for their pay-in-four plans, and it makes your purchase more expensive than if you hadn’t used BNPL.

Charges late fee: In addition to automatically pausing your account, Zip charges a late fee up to $7 if you miss your payment’s due date. Some BNPL providers don’t charge any fees, even when you fall behind on payments. Zip says it will cap this fee at three late fees per order.

No monthly financing: Many BNPL providers offer multiple plans to choose from at checkout, including monthly financing, with some terms stretching as long as five years. Monthly plans can help finance a larger purchase with smaller installments and a longer repayment period. Monthly plans usually come with interest, though, and aren’t the right fit for everyone.

Zip reviews

At the time of writing this review, Zip holds an A+ rating from the Better Business Bureau (BBB) with over 200 complaints closed in the last year. Complaints against Zip mostly revolve around billing issues, including missing refunds and inaccurate charges.

On Trustpilot, Zip is rated 4.7 out of five stars. Users praise the wide availability of Zip, how easy it is to break up the cost of their purchase and being able to easily reschedule a payment when needed.

Zip’s mobile app pages are another good resource for reading Zip reviews. In the Apple app store, Zip is rated 4.9 out of five stars, with over 500,000 ratings. In the Google Play app store, Zip is rated 4.8 out of five stars, with over 60,000 reviews.

Expert take on Zip

“Zip’s product is easy to use, simple to understand and particularly flexible with payment rescheduling. But the automatic installment fee is what prevents it from being one of the best products on the market. No other major provider charges an automatic fee for using its pay-in-four product, and it cancels out what most shoppers are looking for with BNPL: a no-cost way to break up their purchase.”

Jackie Veling, Lead Writer, BNPL

Frequently asked questions about Zip

  • You won’t build credit using Zip. If that’s your priority, consider more reliable ways to build credit, like applying for a secured credit card or getting credit for the bills you already pay, such as rent.

  • There are many reasons you may not be approved for Zip. Make sure you meet Zip’s basic eligibility requirements and consider trying again with a smaller purchase.

  • Zip may ask for your Social Security number to determine your eligibility.

  • Like all BNPL providers, Zip’s approval decisions are instantaneous, meaning you’ll know immediately whether you’ve been approved or denied.

  • Zip doesn’t conduct a hard credit check, so applying for Zip won’t hurt your credit. But if you fall behind on payments and your account ends up in collections, it could hurt your credit score.

Compare Zip with other BNPL lenders

Because Zip charges an installment fee, its pay-in-four is more expensive than pay-in-four plans offered by providers like Affirm, PayPal and Sezzle. These providers also offer monthly repayment options, though you may be charged interest.

Interest

Terms

Fees

NerdWallet rating

on NerdWallet's secure website

  • 0% for pay-in-four.

  • 0%-36% for monthly financing.

  • Pay in four installments, due every two weeks.

  • Pay monthly, with terms of three to 60 months.

  • No fees.

NerdWallet rating

on NerdWallet's secure website

  • 0% for pay-in-four.

  • 6.99%-35.99% for monthly financing.

  • Pay in four installments, due every two weeks.

  • Pay monthly, with terms of six or 12 months, for online purchases over $400.

  • Late fee: Up to $8.

NerdWallet rating

on NerdWallet's secure website

  • 0% for pay-in-four.

  • 0% for pay in full in 30 days.

  • 0%-33.99% for monthly financing.

  • Pay in four installments, due every two weeks.

  • Pay in full in 30 days.

  • Pay monthly, with terms up to 24 months.

  • Late fee: Up to $7.

  • May charge a service fee when you use a one-time card at a nonpartner retailer.

  • May charge a payment rescheduling fee.

NerdWallet rating

on NerdWallet's secure website

  • 0% for pay-in-four.

  • 9.99%-35.99% for monthly financing.

  • Pay in four installments, due every two weeks.

  • Pay monthly, with terms of six, 12 or 24 months, for online purchases of $199 or more.

  • No fees.

NerdWallet rating

on NerdWallet's secure website

  • 0% for pay-in-four.

  • 0% for pay-in-two.

  • 5.99%-34.99% for monthly financing.

  • Pay in four installments, due every two weeks.

  • Pay in two installments, due two weeks apart.

  • Pay monthly, with terms of three to 48 months.

  • Late fee: Up to $15.

  • Convenience fee: Up to $2.50.

  • Failed payment fee: Up to $5.

  • Payment rescheduling fee: First is free, then up to $7.50.

NerdWallet rating

on NerdWallet's secure website

  • 0%.

  • Pay in four installments, due every two weeks.

  • Installment fee: Up to $7.50.

  • Late fee: Up to $7.

  • Payment rescheduling fee: First is free, then $2.

Alternatives to Zip

Zip Buy Now, Pay Later: 2024 Review - NerdWallet (7)

0% APR credit cards

If you have good or excellent credit (690 credit score or higher), you may consider a 0% APR credit card. These cards offer introductory periods of up to 21 months and charge no interest during that period. You may also receive a sign-up bonus or access to a rewards program.

Zip Buy Now, Pay Later: 2024 Review - NerdWallet (8)

Small personal loans

If you’re looking to fund a large, essential purchase, you could apply for a personal loan. Personal loans have fixed interest rates and longer repayment terms, and there are options for borrowers with fair or bad credit (689 credit score or lower).

You can pre-qualify for free with NerdWallet to see your loan options. Pre-qualifying doesn’t affect your credit score.

Zip Buy Now, Pay Later: 2024 Review - NerdWallet (2024)
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