What Is Sezzle and How It Compares

Sezzle is a buy now, pay later service that allows you to purchase items online and pay for them in four interest-free installments over a six-week period.

Sezzle is different from traditional credit because it doesn't require a credit check or a credit card. This makes it more accessible to people who may not have good credit or prefer not to use credit cards.

Sezzle charges a flat fee of 25 cents per installment, which can add up to a total of $1 per purchase. This fee is clearly disclosed upfront, so you know exactly how much you'll be paying in addition to the original purchase price.

Sezzle also offers a "Sezzle Up" feature that allows you to pay off your balance early and avoid interest charges. This can be a big advantage for people who want to pay off their debt quickly and avoid interest fees.

Additional reading: Does Sezzle Help Build Credit

Sezzle is a game-changer for those who want to make purchases without breaking the bank upfront. With Sezzle, you can break up payments for your purchases over a set period of time, typically six weeks with four equal payments.

You won't have to worry about your credit being pulled, which is a big plus. And, if you make your payments as agreed, you won't pay any interest.

Sezzle has a soft credit check, which won't affect your credit score. This is a relief for those who are worried about their credit being impacted.

Sezzle has lower credit requirements, so even if you don't qualify for a credit card, you might still be able to get a credit limit through Sezzle.

Sezzle has over 75,000 merchant partner stores, including big names like Apple, Disney, Amazon, Target, and Walmart. You can find what you want through the Sezzle app with ease.

If you need to reschedule payments, you can do so, but be aware that there is a fee for doing so.

Additional reading: Do Sezzle Report to Credit Bureaus

Sezzle is completely interest-free for shoppers, which means you don't have to worry about paying extra interest on your purchases.

Sezzle makes money by charging a fee for each transaction, so they can help you shop now and pay later. They do their best to prevent failed payments by sending email and text reminders.

If your scheduled payment fails to process, you will be charged a $10 failed payment fee, but Sezzle does everything they can to prevent this from happening.

Curious to learn more? Check out: What Is Sezzle Payment

Sezzle performs a credit check as part of their risk assessment, but it's considered a soft check and won't affect your credit score. This helps them verify your identity and reduce fraud.

Sezzle doesn't report to credit bureaus unless you have Sezzle Up, which is an optional program. If you're not sure you can make all your payments on time, it's best to avoid Sezzle Up to prevent any potential negative impact on your creditworthiness.

Sezzle currently doesn't report to credit bureaus.

Sezzle charges a $10 failed payment fee if one of your automatic payments fails to complete. This fee is applied to the payment and will be automatically retried later.

Sezzle will remind you before the payment is due with text and email alerts, so you can reschedule your payment. Please ensure that you reschedule your payment at least a day prior to the due date.

If you reschedule your payment on the due date, it's not guaranteed due to variable processing times. In this case, it's best to reschedule earlier to avoid any issues.

Rescheduling your payment will incur a $5 late payment fee.

To use Sezzle, you'll need to sign up for an account through the app. You'll receive a verification code via text to continue the process. Fill out the basic account information, confirm you're at least 18, and verify that you're not a robot.

The app will then do a soft credit check when you enter your address. This is a quick and easy process that won't affect your credit score. You can then choose which store you'd like to shop at, and some may require a virtual card or premium sign-up.

You'll see your credit limit for that store at the bottom of the screen. Make your purchase by entering a credit or debit card for your down payment, then choose which type of payment plan you'd like for the rest.

Here are the Sezzle payment options:

You can also pay off your purchase early if you'd like, and Sezzle encourages this as a great way to avoid interest charges.

Sezzle offers a unique payment structure that differs from traditional credit cards and other buy now pay later providers. You'll have equal payments for each time period, ranging from two weeks to 48 months, which is a big departure from the minimum payments or quick payoffs you'd make with a credit card.

Sezzle also doesn't require a hard credit check for balances paid within six weeks, which is a plus for those who want to avoid the impact on their credit score. However, if you want to spread out payments over a longer period, you may need a full credit check by a third-party lender.

Here's a quick comparison of Sezzle with other popular buy now pay later providers:

Traditional credit cards have their own set of rules and regulations. You can make minimum payments or pay off your balance in full, but this can lead to a longer payoff period and more interest paid overall.

The payment terms on a credit card are quite different from Sezzle's. With a credit card, you're not locked into a specific payment schedule like you are with Sezzle.

A credit card will typically do a hard pull credit check, which can affect your credit score. This is in contrast to Sezzle, which won't do a hard pull when you choose to pay off your balance within six weeks.

Interest charges on a credit card can be a real concern. You'll be charged a specific interest rate for each purchase, and this can add up quickly if you're not paying off your balance in full each month.

Credit limits on credit cards can vary, but they're usually determined by a hard credit check. This can be a drawback for people who are new to credit or have a limited credit history.

For more insights, see: Amazon Accept Sezzle Virtual Card

Here's a comparison of Sezzle and traditional credit cards:

Sezzle has some competition in the buy now pay later (BNPL) market, and it's worth exploring your options. Affirm is similar to Sezzle in that it's a BNPL lender with several payment options available.

One key difference between Affirm and Sezzle is that Affirm doesn't have late fees. Afterpay, on the other hand, does have late fees, similar to Sezzle.

Afterpay is a provider with interest-free loans, but they only offer one type of payment plan. Klarna also offers flexible payments, including "pay in four installments" and "pay in 30 days" options.

You can pay in store with Klarna, and you can even extend due dates. However, like Sezzle, Klarna does have late fees.

Related reading: Afterpay Klarna Sezzle

Sezzle offers flexible payment plans that can help you manage your expenses more effectively. This is a big advantage, especially if you're struggling to make ends meet.

One of the key benefits of Sezzle is that it performs a soft credit check, which won't harm your credit score. This is a relief if you're concerned about your credit history.

Sezzle has a large network of merchant partners, making it a convenient option for many shoppers. You can shop with confidence, knowing that you have a range of options to choose from.

However, it's worth noting that some merchant partners require a Premium subscription to use their services. This can be a drawback for some users.

If you need to reschedule payments, Sezzle allows you to do so. This can be a lifesaver if you're facing an unexpected expense or financial setback.

On the other hand, there are some fees involved if you reschedule payments or miss a payment. These fees can add up quickly, so it's essential to stay on top of your payments.

Here are the key pros and cons of Sezzle in a nutshell:

Sezzle makes money without charging interest fees to consumers, instead, the company charges merchants a percentage of the total basket value.

This business model is quite different from traditional credit card companies, which often charge both merchants and consumers fees. Sezzle's core product offering is free for consumers who pay on time.

Sezzle's standard payment processing fee is 6.1% plus 30¢ per transaction, which is a significant percentage of the total sale. This fee is charged to merchants for each transaction.

Merchant-related fees comprised approximately 82% of Sezzle's total income in 2021, making it the primary source of revenue for the company. Sezzle pays merchants for the transaction value upfront, net of the merchant fees owed to Sezzle.

Sezzle also earns revenue from fees charged to consumers to reactivate an account following a failed payment. This fee is a small but significant source of income for the company.

Consumer-related revenue comprised approximately 18% of Sezzle's total income in 2021, a relatively small but still important part of the company's revenue stream.

Intriguing read: Sezzle Revenue