Costco is introducing its own “Buy Now, Pay Later” program.
The wholesale retail chain will offer a payment plan option on some online purchases through its payment partner Affirm.
Buy Now, Pay Later programs offer flexibility to customers and let them purchase products by paying for them over a specified time period.
Costco’s Buy Now Pay Later program can be applied to transactions on its website that total between $500 and $17,500, with repayment periods ranging from three to 36 months.
The new Buy Now, Pay Later option will also charge interest, with APR rates between 10% and 36%. A $500 purchase at 20% APR, with payments spread out across 6 months, for example, will cost $88.27 per month and the original $500 item would cost $529.61 overall.
Payments must be made through Affirm’s app or website but customers can also set up automatic payment deductions.
A Buy Now, Pay Later plan can help stretch a large purchase, such as an electronic device or home appliance, across multiple months and paychecks, but there may be penalties for customers. Missing Buy Now, Pay Later payments or paying installments late can hurt one’s credit score.
The 2030’s Costco Bubble
Doesn’t paypal offer 0 interest buy now pay later? If so who’s going to pay 36%💀 In the country where I live, 36% interest rate on loans is legally considered usury.
36% is ridiculous
I want to be the first to default on $17,500 worth of Costco brand burger patties. The one true BuURgR
I love my collateralized hot dog obligations.
🌭
My grandparents: We are taking out a loan to finance 200 acres of land.
My parents: We are taking out a loan to finance a 3 bedroom 2 bath home.
Me: I’m taking out a loan to finance a 20 year old car.
My children: I’m taking out a loan to finance a box of hot pockets.
The new Buy Now, Pay Later option will also charge interest, with APR rates between 10% and 36%.
10% and 36%.
Bankruptcy button
not sure when the Affirm APR would kick in after purchase date but just for comparison’s sake, credit cards have been around 20% in my experience. 36% is fucking highway robbery.
A lot of these pay later programs are wrecking people’s credit scores as well, since each one counts as a new line of credit constantly being opened.
I mean there’s a whole conversation about the nonsensical credit score system in itself to be had but even at face value this is such a clear example of degradation of capitalist society.
It’s like the moment in The Big Short when they realize the bubble is about to pop, except we keep fucking having that moment and it never fucking pops.
…yet
A $500 purchase at 20% APR, with payments spread out across 6 months, for example, will cost $88.27 per month and the original $500 item would cost $529.61 overall.
think it’s on residual when paid according to plan, probably 36% kicks in after missed payment
25% of the US is using buy-now-pay-later services to pay for groceries. This is gonna be a huge expanding industry over the next 5 years. Expect the Last Week Tonight episode imminently.
Except Oliver’s “solution” will be regulating interest rates on grocery loans. The guy is controlled opposition
Just go back to his Kid Starver episode whenever you need reminding. He handwaved the rightful criticism of that blairite shithead and didn’t even mention how they sabotaged Corbyn, doing the same lesser evil shit he does back during the Clinton, Biden, and Harris elections.
I have a system that goes like buy now, pay never. In other words, stealing.
imagine bulk buying shit from a discount retailer that charges a members only annual fee, only to completely negate the discount through consumer credit financing.
I don’t even get what type of customer this is for, except I guess people who were told Costco is a good deal, but don’t really understand how to not fuck themselves.
also, I guess like emergency household / home business appliance replacement for people with weird credit?
I feel like so much “consumer credit innovation” in the US is from people looking at how much $ payday loan type places make in pure profit and trying to get in on the action.
How many years before we bring back indentured servitude for debt and debtors prisons with forced labor. Capital has one goal and that’s the complete and total enslavement of humanity
Indenture 4 denture! Get your dentures now, pay for them later! Yheeeee-haw!
love to finance a gallon of mayonnaise
No, I’m not paying. If you want it back, come a take it
I say as I lounge in my bathtub full of mayonnaise
finance the $15 gallon of mayo for $19.50, but you can make 90 mayo sandwiches for $3/ea from each gallon. a couple of high traffic nights at the Le Bistro Mayo, and you are ready to franchise.
Le Bistro Mayo
that exists and it’s called panera
Mr. Mayonnaise’s Mansion is better. The best sandwiches in wherever we are now.
Brazil does this for gas.
Most people here probably haven’t heard of it but Medicare offers this for expensive drugs now. Medicare Prescription Payment Plan I think it’s called. People can get their really expensive blood thinners or what have you and pay it back monthly.
I need you to co-sign so I can get a loan on this laundry detergent.
is that why they keep it locked up now?
