Identifying payment methods using the dimension of time

Ever get a deal for buying now and paying later? When you get an incentive such as that, the payment method is based on time dimension. You may be able to purchase the item and take it home today, and then pay for it in the near future. This pay-later method allows buyers to get the services or products first for settling the account later, using charge cards and credit cards.

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Pay-later

This pay-later transaction method is typically provided to people who have a good credit record. It is also offered to those who have a credit card. When your payment solution is that of a credit card as it is installment, the payment method is that of settling the bill in the days to come.

About credit lines

If you have no credit or bad credit, there are several companies that might not approve your application. However, there are instances that the buyer does not have to go through a credit check, such as when buying a vehicle, as the title of ownership won’t be transferred until payments are completed. But, note that those who buy on a pay-later basis usually get charged high interest rates, so it is a good idea to look for such offers that have zero interest.

Installment basis

Buying things on an installment basis is another form of pay-later. A lot of major purchases are done on an installment basis like that of buying a house or a vehicle. Most companies require the buyer to make a down-payment before giving credit. There are times that after the down-payment, those monthly installments have to be covered with a post-check.

Subscriptions

When you get a subscription, the plan for the service of such things like streaming movies or music might be on a monthly, 3-months, bi-annual, or annual basis. When you don’t pay for the entire amount for the subscription right away, the future payments, upon your approval, might automatically be deducted from your designated account like that of your bank account. To subscribe for a longer period of time typically provides you with a better deal, as the monthly payments become much lower.

Paying on time

When you make a contract for a purchase made on an installment basis or sign up for a subscription, you need to make sure that you don’t fail to pay on time by using an online payment method. There might be late fees and sometimes, the service might be stopped or the item pulled out. Houses get foreclosed for failure to pay mortgage. Though the pay-later plan is popular, as a lot of people use their lines of credit, there are times that failure to pay has other consequences such getting a bad credit record.

Pay-later payment methods

When you pay-later, there are still variations in the method of payment like being covered by a check, a credit card, or for funds to be debited from a bank account in the future. Having good credit is often necessary but there are several companies such as that for streaming movies subscriptions that do approve those who have lousy credit.