Zip financing review
Buy now and make interest-free payments later with no hidden fees.
Use Zip to split four payments over six weeks without paying any interest. After shopping online, select Zip at checkout where offered, or you can create an account on its website or mobile app and get an instant approval decision.
Zip might be right for you if…
- You don't have a credit card or enough money up front for a purchase you need today.
Zip might not be a fit for you if…
- You're unsure whether you can make four equal payments over six weeks — and can't pay 25% today.
Zip, previously Quadpay, has an Excellent rating on Trustpilot, with about 4.5 out of 5 stars compiled from over 2,500 reviews. Happy shoppers report that the app is easy to use, with lots of stores to choose from and a payment plan that's simple to understand. On the flip side, a few unhappy customers state that it's difficult to get in touch with customer service. One reviewer complains that their spending limit has never increased. Overall, though, people on Trustpilot seem to enjoy Zip.
However, Zip has a poor reputation with the Better Business Bureau (BBB), where it has an F rating because it failed to respond to 11 complaints and has not resolved five complaints. A total of 1,232 complaints have been filed against Zip. Most of the complaints are from people who used Zip to make a purchase that they ended up returning and are having trouble receiving a refund from Zip. Additionally, in April 2020, Zip had to pay over $685,000 to California consumers and $69,000 in penalties for offering loans to California residents without acquiring the correct license.
How does Zip work?
You can use Zip to pay for an order in four separate chunks at thousands of retailers worldwide, from stores like Traders Joes, Walmart and Target to more niche brands like ASOS and Moleskin. All it takes is three steps:
- Choose the Zip option when you check out with one of its partner retailers or shop at any online store that accepts Visa using the Zip mobile app.
- Link an existing debit or credit card to your Zip account.
- Zip will automatically split your payments into four equal chunks and deduct them from your selected card on schedule.
Zip uses advanced algorithms to provide you with an approval decision within just a few minutes. You just have to enter a few pieces of information and let Zip take care of the rest.
If approved, you'll pay only the first 25% of your purchase amount. The other 75% will be divided equally and paid over the next six weeks.
How does Zip make money?
Zip's business model isn't based on interest. Instead, here's how it makes money:
- Merchant fees. Every time you use Zip to make a purchase, the retailer you purchase from owes a cut of the profits to Zip.
- Late payment fees. If you don't pay on time, you'll owe a late payment fee to Zip.
- Convenience fees. You'll pay $1 per installment for the convenience of using Zip — a total of $4 by the time you settle the bill.
- Interchange. When you pay for something using a debit or credit card, the retailer owes an interchange fee to the credit card company. So when you pay using the Zip branded Visa, Zip gets a portion of that interchange fee.
What payment methods can you use to pay Zip installments?
You can pay for your Zip installments using a debit or credit card, including Visa, MasterCard, Discover and American Express. It doesn't accept PayPal, prepaid credit or debit cards, ACH bank transfers or money orders.
Zip pros and cons
Zip is a good option for people who can commit to the four equal payments over six weeks, but it isn't a great option for folks who need more flexibility.
- Pay early without penalty. You can pay installments ahead of time or pay multiple installments at once, at no extra cost.
- No extra costs. Zip is free other than a $4 convenience fee, and you'll have no interest charges as long as you pay on time.
- Get instant approval. It'll only take a few moments to enter your information and receive an approval decision — and it doesn't pull a hard credit check.
- It partners with lots of retailers you probably already shop at. From Whole Foods to Trader Joe's to Macy's, Target and even Amazon, Zip is offered at thousands of popular retailers you may already frequent.
- Only one payment plan. It's four equal installments over six weeks — and you can't extend it without paying late fees.
- Spending limits vary. So you won't know whether Zip has you covered until after you apply.
- You could be waitlisted. If you aren't approved immediately, you'll need to wait at least 30 days to reapply.
Does Zip check your credit?
No, Zip doesn't complete hard credit checks, so your credit rating won't be affected when you use it.
Can Zip help my credit?
No, Zip doesn't report to credit bureaus, so using it won't help your credit score. But keep in mind that even though Zip doesn't require a hard credit check, the company may report late payments or defaults to major credit reporting bureaus. This could negatively affect your credit score.
Is Zip safe?
Yes, payments through Zip are secure.
How to get approved for Zip
To start using Zip, select the Zip option at checkout or create an account on its website or mobile app. You'll just need to provide your date of birth, a mobile number and a debit or credit card.
You'll also have to meet these basic requirements:
- Live in the US
- Be at least 18 years old and capable of entering into a legally binding contract (19 in the state of Alabama)
- Have a valid and verifiable mobile phone number
- Have a US credit or debit card
Use the live chat contact option on Zip's website if you have any problems signing up or using the service.
What credit score do I need for Zip?
Zip doesn't disclose the credit score you need to use it. The best way to see if you're eligible is by applying — and since it doesn't pull a hard credit report, you can apply without worrying about getting dinged.
Zip is a free service that doesn't charge hidden fees or interest. The only time you'll pay a fee is if you miss a payment. You'll be charged $7 for the first day a payment goes unpaid and an additional $7 if your payment is a full seven days late.
If you think you can't make a payment by its due date, contact Zip ahead of time and explain the situation. In some cases, customer service may be able to move your payment date. But there's no guarantee.
Zip interest rates
Zip doesn't charge interest, so you don't need to worry about accumulating interest rates.
Zip customer service
You can get in touch with Zip's customer service team in a few ways:
- Phone. Call 888-274-3159
- Live chat. Select the Help button to start chatting with a Zip agent, 9 a.m. to 9 p.m. ET, seven days a week.
- Email. Submit a help form through your account and a Zip agent will get back to you via email.
Compare buy now, pay later services
To see how Zip stacks up to the competition, select up to 4 services and click "Compare."
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