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What is Bread Financing, Buy Now Pay Later with Bread Payments

What is Bread Financing, Buy Now Pay Later with Bread Payments

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If you’ve ever wished you could buy now and pay later  a high ticket item like a new mattress or CPAP sleep machine without dealing with crazy high-interest rates, check out Bread Financing. Unlike a credit card, Bread offers flexible and affordable financing terms for consumers.

The buy now pay later platform provides short-term loans that splits up your payment. You choose the terms and can see the interest rate before you accept the loan, choosing from four equal installments or longer term loans.

Is Bread Payments worth it? Read this review to find out.

What is Bread Payments?

Bread Payments is a buy now pay later platform but with more payment options than traditional platforms like Affirm. Bread offers several options based on your qualifying factors including 0% interest options or loans with longer terms and APRs higher than 0%.

How Does Bread Payments Work?

It’s easy to use Bread Financing. If it’s available at the retailer you’re shopping with, it will show up on their website and even during checkout. If you choose Bread as your payment option, you’ll enter your personal information and get pre-approved in minutes.

Bread provides you with options, which may include a short-term 0% APR option and longer-term options with higher interest rates. Choose your option and checkout. If you choose the ‘pay in four equal monthly installments option’ you’ll pay 25% of the purchase when you buy it. If not, you’ll follow the installment loan terms, which includes the option to set up automatic payments and/or prepay your loan with no penalty.

Does Bread Payments affect your Credit Score?

Anyone can choose Bread Payments at checkout to see their options, but it doesn’t affect your credit score. Bread only conducts a soft credit pull which is the equivalent of you checking your own credit – it doesn’t show up as an inquiry.

If you select a payment option through Bread Financing, though, they do report your payments to the credit bureaus, so choose an option you can afford. Read more on how Buy Now Pay Later apps impact your credit score here. 

Is Bread Payments Available in Canada?

Bread Payments is available in the United States and Canada. In the US the loans are through Cross River Bank and in Canada, they are through Royal Bank of Canada.

Bread Financing vs Affirm – Which is Better?

Many people compare Bread Financing vs Affirm since they offer similar services. However, qualified candidates can borrow more with Bread Payments than Affirm. If you’re trying to build credit, Bread Financing is a better option too because they report to the credit bureaus – Affirm does not. If you make your payments on time, reporting them to the credit bureaus can help you build a solid credit history.

Where Can I Shop with Bread Payments?

You can use Bread payments at many types of stores from home goods to furniture, musical instruments, mattresses and more. Find our comprehensive guide to online stores that accept Bread here.

Final Thoughts

If you want to spread out your payments or have more liquidity in your account, Bread Financing can help you afford more by spreading out your payments. Whether you choose split payments, making four equal installments or you take a longer-term loan with interest, you’ll secure some of the best terms in the market, allowing you to make smart purchase decisions.

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