What is Buy Now Pay Later (BNPL)?

BNPL lets you spread the cost of a purchase by paying in instalments. This is often interest free until after the deferral date (when the interest free period ends). The deferral date can be found on your credit agreement, welcome letter and deferral reminders sent at 6 and 3 weeks before the deferral date.

After the deferral date ends, interest will start if you haven't paid the full balance. Although you don't have to make payments during this period, it is important to know that interest is calculated from the start of the agreement.

If you don't pay the full amount before the end of the deferral date, the accrued interest will be added to your balance.

If you choose to settle in full during the deferral period you may need to pay an early settlement fee. This will be no more than £29, and if the interest owed at that point is lower than £29, you'll only pay the lower amount.