Guide to Splitit: A no-interest, no-nonsense installment payment service

Making and monitoring your payments is also simple with Splitit. When you purchase an item, Splitit asks you to provide an email. Your email enables you to set up an account with the support portal on the Splitit website. Guide to Splitit: A no-interest

You can use this portal to monitor your instalments and make payments. Beyond the portal, you will also see the instalments on your monthly card statement, and Splitit sends a monthly email confirming the payment. Guide to Splitit: A no-interest

A unique and exciting feature of Splitit is that its instalment plans will not impact your credit score. Every month, your bank will only see the instalments made. Even if your payment method is declined, your credit score remains unscathed.

However, any late payments will be charged interest at your card’s APR until they are paid off. It is still important to pay attention to your payment’s due dates and make timely payments. Guide to Splitit: A no-interest

Pros and cons of using Splitit

Splitit’s many shopper-friendly qualities – like no credit check or application – set it apart from the competition. However, there are some cons to Splitit that you’ll want to keep in mind. Guide to Splitit: A no-interest

Pros

• Splitit doesn’t charge interest for payments made on time.
• Splitit has no fees, even for late payments. This is unique for the market.
• Splitit does not require a credit check, and it will not decrease your credit score. This even applies in situations like declined payment methods.
• There is no application process to use the service.
• You can make early payments through the Splitit portal. Guide to Splitit: A no-interest
• If you use a rewards credit card, you will continue earning points. Splitit does not interfere with your credit card perks, so you can keep saving.

Cons

• Splitit has limited payment options. Competing services like Klarna offer alternative options like financing. Guide to Splitit: A no-interest
• It partners with limited retailers. Many payment installment services use a wider base of merchants or let you pay anywhere with a virtual card number.
• Splitit places a hold for the full balance on your credit card. This may be an issue if you have a low spending limit. It can also negatively impact your credit utilization. Guide to Splitit: A no-interest
• Retailers may place maximum or minimum purchase values on the customer. For example, James Avery requires a minimum $10,000 purchase to utilize Splitit.
• Some Splitit-compatible retailers do not accept debit cards.
• Splitit only accepts Visa and Mastercard.
• Since Splitit does not check your credit or report it to a credit bureau, you cannot use it as a tool to improve your credit score. Guide to Splitit: A no-interest

See related: Split any online purchase into 4 instalments with Klarna

Tips for maximizing Splitit

Splitit is a great option for many people seeking a convenient instalment payment service. However, using these tips will help you reap the many benefits of Splitit. Guide to Splitit: A no-interest

Choose your retailer wisely

Some retailers require you to spend a specific amount of money to use Splitit. Check the Splitit website’s list of retailers and their terms for collaboration to make sure you can make the purchase you want with the service. Guide to Splitit: A no-interest

Make payments early if you can

Unlike competing services, Splitit offers the ability to pay your instalments early. Taking full advantage of this early payment opportunity helps you take greater control of your finances.

Although there are no late fees with Splitit, any late payments will be charged interest at your card’s APR until paid off. For this reason, it is important to pay on time or early if possible. Guide to Splitit: A no-interest

Go for luxury items

Many of Splitit’s partner merchants are small-to-medium sized businesses with expensive products. Capitalize on Splitit’s ability to let you finance more expensive items without fear of a credit check or an application. Guide to Splitit: A no-interest

If you would ordinarily opt out of luxurious purchases, Splitit helps break them down to realistic chunks of payments. However, if you are looking for larger and less expensive businesses, other installment payment options offer more retail partnerships. Guide to Splitit: A no-interest

Final thoughts

Splitit offers a refreshing, new take on the instalment payment solution. It has no late fees, interest rates or long-winded application process. This feature means alternative payment is more accessible with Splitit than with other services. Guide to Splitit: A no-interest

However, this service is not ideal for people who want to browse an ample variety of retailers, as it limits their options to those that accept Splitit, which may not include many popular or diverse retailers. Splitit is also only available for Visa and Mastercard, alienating cardholders with American Express and Discover cards, which limits its accessibility for a broader range of consumers who may prefer these other payment options. Guide to Splitit: A no-interest

Nonetheless, Splitit is concise and easy to use. Its simplicity makes it a viable option for shoppers and merchants alike.