If you’re looking for a way to finance your purchases without paying the full price upfront, you may have come across Katapult and Affirm as possible options. These two companies offer a buy-now-pay-later service that allows you to split your payments into more manageable installments. But which one is better for you? In this article, we’ll compare Katapult vs Affirm to help you make an informed decision.
What is Katapult?
Katapult is a fintech company that provides lease-to-own services for consumers. It partners with retailers to offer a flexible payment option to customers who can’t or don’t want to pay the full amount upfront. With Katapult, you can get approved for a lease with no credit needed, making it an excellent option for people with poor credit history. The company’s lease term typically ranges from 12 to 18 months, and you can make weekly or bi-weekly payments.
What is Affirm?
Affirm is a buy-now-pay-later company that offers financing for purchases made online or in-store. It works by allowing you to split your payments into equal installments over a set period, typically three to 36 months. Affirm’s interest rates can range from 0% to 30% APR, depending on your credit score and the length of the loan term.
How do they compare?
- Approval process
Katapult doesn’t require a credit check, making it easier to get approved for a lease. Affirm, on the other hand, will check your credit score before approving your loan. If you have poor credit, you may not be eligible for an Affirm loan.
- Payment terms
Katapult’s lease term ranges from 12 to 18 months, and you can make weekly or bi-weekly payments. Affirm offers loan terms from three to 36 months, and you can choose to make payments monthly or bi-weekly.
- Interest rates
Katapult charges a flat leasing fee, which is disclosed upfront and doesn’t change over the lease term. Affirm, on the other hand, offers interest rates that can range from 0% to 30% APR, depending on your credit score and the length of the loan term.
- Retailer partnerships
Katapult partners with select retailers, while Affirm has a more extensive network of merchants that accept its financing option.
Which one is right for you?
If you have poor credit, Katapult may be the better option since it doesn’t require a credit check. Additionally, if you prefer to make weekly or bi-weekly payments, Katapult’s leasing option may be more suitable for you. However, if you have good credit and prefer to make monthly payments, Affirm may be the better choice. Additionally, if you’re looking to finance a purchase from a retailer that doesn’t partner with Katapult, Affirm’s broader network of merchants may be more convenient.
In conclusion, both Katapult and Affirm offer a convenient way to finance your purchases without paying the full price upfront. Your choice will depend on your credit score, preferred payment terms, and the retailer you want to buy from. By considering these factors, you can make an informed decision and choose the right buy-now-pay-later option for you.