this post was submitted on 23 May 2025
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Costco is introducing its own "Buy Now, Pay Later" program.

The wholesale retail chain will offer a payment plan option on some online purchases through its payment partner Affirm.

Buy Now, Pay Later programs offer flexibility to customers and let them purchase products by paying for them over a specified time period.

Costco's Buy Now Pay Later program can be applied to transactions on its website that total between $500 and $17,500, with repayment periods ranging from three to 36 months.

The new Buy Now, Pay Later option will also charge interest, with APR rates between 10% and 36%. A $500 purchase at 20% APR, with payments spread out across 6 months, for example, will cost $88.27 per month and the original $500 item would cost $529.61 overall.

Payments must be made through Affirm's app or website but customers can also set up automatic payment deductions.

A Buy Now, Pay Later plan can help stretch a large purchase, such as an electronic device or home appliance, across multiple months and paychecks, but there may be penalties for customers. Missing Buy Now, Pay Later payments or paying installments late can hurt one's credit score.

The 2030's Costco Bubble

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[–] [email protected] 26 points 3 weeks ago* (last edited 3 weeks ago) (8 children)

The only good payment plans I've seen are the ones attached to an Amazon credit card that charge 0% for up to a year as long as no payments are missed (the trustworthiness of this probably varies by region). Which you select manually from a reliable website frontend.

The consequences of missing a payment for all of these are the same, they hit your credit score. But at least from the Amazon Credit Card ones I've seen, the payment is just part of your normal credit card bill payment.

A lot of people have problems with Affirm and other credit card companies fucking up auto-payments on their end and blaming the user, with automatic hits to their credit scores. At least with a credit card bill payments are reliable.

IMO saving up is always better, credit cards should be avoided, payment plans should be avoided, most people can only be trusted with the lowest interest card they can get with the smallest limit they can get away with. I also wasted a lot of money not understanding how my bank's overdraft protection worked in the past.

Never do payment plans on basic necessities like this from Costco, they're basically payday loans that know you won't be able to pay them off. If you have to use them you can't afford them.

Edit: basically avoid credit cards and financing as much as humanly possibly

[–] [email protected] 5 points 3 weeks ago (1 children)

Edit: basically avoid credit cards and financing as much as humanly possibly

if you're budget constrained, yeah. as goodguywithacat says below, treat a CC like a debit card and pay it off every month. I've never made an interest payment on a CC in my life. I put almost all my monthly expenses on a credit card that has 1-5% cashback rewards. I get ~$100 a month in reward points that I regularly spend on shit i need. at this point, i've spent over $1k in money i never worked for. one of life's little perks.

[–] [email protected] 4 points 3 weeks ago

I used one for paying monthly bills and utilities and didn't redeem rewards for a couple of years, it was a few hundred dollars by the time I got to it which was really nice but also risky to hold because my bank could arbitrarily recalculate the value of the rewards points

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