Zilch is a virtual Mastercard that allows you to pay in full or spread the cost of purchases at thousands of retailers.
You can pay with Zilch at pretty much any card-accepting store (in-person or online), but how much Zilch costs depends on whether the store is one of Zilch’s thousands of partners or not. If it is, great, you could pay “lower or no fees”. If it’s not, then you can still pay using “Zilch Anywhere” with a fee of up to £3.50 (for purchases under £75, £4.50 tereafter) to pay over 6 weeks or up tp £40 (6%)to pay over 3 months. That’s the painful part. The nicer part is that you don’t pay interest.
The interest-free payment service allows you to buy products when you want them while spreading the cost of these items. The key is to ensure you can afford the repayments.
Zilch is slightly different from buy now, pay later services in that you will be given a virtual Zilch card. In order to use it, select your chosen store from the Zilch website or app and then activate the card for that store.
After that, you can order your goods with the Zilch card and pay for them later. The upfront cost for the item comes in at 25% of the overall price tag, with the remaining balance taken every 2 weeks (over a period of 6 weeks) at 25% each time.
Say you wanted to buy a pair of Nike Air Force 1 trainers (£85). Your first payment of £21.25 would be taken at the checkout. Then, after 2 weeks, a second payment of £21.25 is due. After 4 weeks, you’ll wave goodbye to another £21.25, and then after 6 weeks, (you guessed it) the final payment of £21.25 is taken.
| Zilch Up | Zilch Classic | Zilch X | |
|---|---|---|---|
| Representative APR | 31.9% | 18.6% | 14.9% |
| Credit limit | Up to £800 | Up to £3,000 | Up to £4,500 |
| How long do I have to pay back? | 6 weeks (you pay 25% or 50% upfront). | 6 weeks or 3 monhs (you pay 25% upfront) | 6 weeks or 3 monhs (you pay from 0% upfront) |
In all cases, no late payment fees apply (but transactions fees may apply), and you can “snooze” instalments for 4 or 8 extra days.
You can check out our full list of Zilch retailers.
It costs nothing to use, even if you forget to pay on time.
The only instance you may pay more than your scheduled amount is if you want to use Zilch to pay for goods from a brand it does not work with. In this case, a fee of up to £3 is added at the time of checkout.
Zilch will report missed payments to all 3 CRAs (Equifax, Experian and TransUnion) and this can damage your credit score. This can have consequences for borrowing from other lenders, so it’s vital that you keep on top of your payments.
If you fail to clear your balance when it’s due, contact the Zilch support team. If you fail to clear your balance from this point onwards, you may end up being ineligible to use Zilch at all. The service will always send you emails to remind you of any overdue amounts.
As of January 2023, using Zilch can affect your credit score. Zilch shares payment information with all 3 CRAs, so if you miss any, your score could drop. Other shared information includes your credit limit, outstanding amounts and your payment status.
Zilch runs a “soft” credit check to verify your details and get an idea of your creditworthiness. This won’t impact your credit score and it won’t be visible to others on your credit record. You will be able to see it in your record, if you’ve signed up to access your credit file.
Based on its “soft” credit check, Zilch will then give you its own credit score to determine how much you can spend with them. This will not affect your overall credit rating.
If you want an account, simply visit this page and create one by entering an email address and a password. You will then receive an email with more information on how to link your debit card to your Zilch account.
On the off chance that you encounter a problem with Zilch, we suggest taking a look at the list of handy frequently asked questions on the site. Can’t find your query on there? Give Zilch a call on 020 3405 9775 or email the team at support@payzilch.com.
Zilch is a PCI DSS Level 2 certified compliant service provider (which means it meets requirements to prevent data breaches and payment card fraud) and authorised by the Financial Conduct Authority.
Keep in mind that, unlike credit card purchases, BNPL spending is typically not covered by Section 75 of the Consumer Credit Act. This means you don’t have the same level of protection if your purchase doesn’t arrive, it’s damaged or the retailer goes bust. With Zilch cards, you get Section 75 protection unless you’re using “Pay in 1”.”
Most reviews of Zilch we’ve found online are positive, with customers praising its ease of use and how handy it is to spread the cost of items over a number of weeks. Zilch scores 4.6 out of 5 on Trustpilot, which is an “Excellent” rating, based on over 55,000 customer reviews (updated May 2024).
There are some negative reviews, too. These focus on poor customer service, particularly from customers who have struggled to make contact with Zilch when they experience a problem or have trouble meeting their payments.
Zilch is constantly evolving and has some new launches on the horizon, so it’s certainly one to watch. Unlike some of its competitors, Zilch doesn’t charge late payment fees, but remember that missing payments can hurt your credit score and make it difficult to get credit again in the future. If you want to use a credit card or BNPL service, be sure to only ever spend what you can afford to repay.
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