Walmart Layaway: Is Affirm Worth It?

Explore Walmart's partnership with Affirm for flexible financing options with Walmart layaway. Learn how to use Buy Now, Pay Later for your purchases, manage payments, and understand the financial implications.

In 2020, Walmart decided to discontinue its classic layaway program. Instead, they introduced a new alternative for customers: a buy now, pay later service in collaboration with Affirm. This partnership allows customers to spread the cost of their purchases over several payments, making the buying process more manageable and flexible, especially for those full-price items not found in Walmart's hidden clearance sale! You can save BIG with Walmart Coupon Hacks!

What Is Affirm?

Founded in 2012, Affirm partners with retailers like Walmart to offer a transparent buy now, pay later service. Customers can immediately take home their purchases and pay over time in installments, avoiding hidden fees and compound interest. The process involves selecting Affirm at checkout, applying for a loan, and choosing a payment schedule that fits their budget.

What Products Qualify for the Walmart Layaway?

• Electronics: From the latest smartphones and laptops to gaming consoles and TVs, customers can spread out the cost of high-tech gadgets.
• Home and Garden: Furniture, appliances, outdoor equipment, and home improvement tools can be financed, making big-ticket items more accessible.
• Apparel: Update your wardrobe with new clothing, shoes, and accessories for the whole family and pay over time.
• Toys: Get the hottest toys, games, and educational items for children of all ages without paying the full price upfront.
• Sports and Outdoors: Equipment for sports, fitness, and outdoor recreation is included, allowing enthusiasts to enjoy their hobbies immediately.
• Automotive: Essential auto parts and accessories are also available to purchase immediately with Affirm financing.
• Health and Beauty: Skincare, makeup, and wellness products can be financed, so customers don't have to wait to take care of themselves.

For the latest information on eligible products for the Affirm Buy Now, Pay Later program, always refer to Walmart's website or ask in-store.

Benefits of Walmart Layaway 

Imagine you're at Walmart, eyeing a fancy coffee maker that's priced at $100. If you decide to finance this purchase through Affirm and you're given an APR rate of 15% due to your credit score, you might choose a 12-month payment plan. Under this plan, your monthly payment would be approximately $9.00.

By the end of the year, you will have paid a total of $108.00. That extra $8.00 from the APR rate is essentially the cost of financing, which might have bought you only a couple of bags of coffee to enjoy with your new machine--not a bad trade for getting special financing.

Here are some other benefits of using the Walmart layaway program:

• Flexible Financing for Low-Income Families: Affirm caters to those on a tight budget by offering a variety of payment plans. This flexibility helps low-income families make necessary purchases and enjoy their items immediately, without the full payment required upfront.
• No Waiting Period to Enjoy Your Purchases: With Affirm, you can take an item home immediately, rather than waiting until you've paid off the balance like with a traditional layaway.
• No Risk of Cancellation Fees: Unlike traditional layaway, Affirm has no cancellation fees, allowing payment flexibility without extra penalties.
• Build or Improve Your Credit Score: When you finance through Affirm and make your payments on time, you're allowed to build or improve your credit score. This can be advantageous for future financial endeavors, such as applying for credit cards or loans.
• Immediate Access to Sales and Discounts: When using Affirm, customers can take advantage of sales and discounts immediately, purchasing items at the best price without waiting to pay off a layaway balance.
• No Storage Hassles: With traditional layaway, items remain in store until they're fully paid for, taking up space and potentially leading to mix-ups. Affirm eliminates the need for storage, as customers take their items home right away.
• Access to a Wider Range of Products: Some items are not eligible for layaway due to their nature or high demand. With Affirm, customers have the opportunity to finance a broader selection of goods, including technology and household appliances, which may not have been available through layaway.

How to Start a Walmart Layaway: Step-by-Step

1. Select Items on Walmart's website: Begin by adding the items you want to purchase to your Walmart shopping cart.
2. Proceed to Checkout: Once you have all your desired items in your cart, click on the cart icon to begin the checkout process.
3. Enter Shipping Information: Provide your shipping address and choose a shipping method.
4. Select Payment Method: When you're ready to pay, look for the payment options. Walmart may offer various payment methods, including Affirm.
5. Choose Affirm as the Payment Option: If Affirm is available, select it as your payment option during checkout.
6. Complete Affirm Application: Setting up an Affirm account is quick. Simply select Affirm at Walmart's checkout and visit Affirm.com/walmart to check eligibility. The soft credit check won't impact your credit score. Provide a few personal details, and you'll get an instant decision on your financing options.
7. Review Loan Terms: Once your application is processed, you'll see the loan terms, including the interest rate, monthly payments, and the total cost of the loan.
8. Agree to Terms and Confirm: Review the terms carefully. If you agree, confirm your purchase.
9. Complete Walmart Checkout: Return to the Walmart checkout page and complete the remaining steps to finalize your purchase.
10. Repayment with Affirm: After your purchase, you'll make monthly payments to Affirm based on the agreed-upon terms until the balance is paid off.

Managing a Walmart Layaway Payment Plan with the Affirm App

The Affirm app streamlines payment management after your Walmart purchase. Simply choose your items, checkout with an Affirm barcode, and track your payments online or via the app.

The app offers:

• The option to use autopay to automatically deduct payments from your chosen account.
• The option to make early payments, reducing your monthly invoice.
• A reminder that any remaining balance will be charged on the due date if the payment is incomplete.

How to Avoid Negative Financial Implications of Buy Now, Pay Later Services

The allure of buy now, pay later services like Affirm lies in their ease and adaptability. Understanding the monetary consequences is crucial. Transitioning from classic layaway methods to platforms such as Affirm can bring about the possibility of interest fees—a component absent from conventional layaway plans.

Tip #1: Be Sure to Check Out The Interest and APR Rates

Affirm charges simple interest, not compound, so you'll never pay more than the item's price plus any potential fees. For short-term loans, the total repayment amount provides a more accurate cost picture than the APR.

Tip #2: Try to Avoid Late Fees

The clarity of Affirm's terms helps consumers manage their finances without hidden fees. However, late payments can increase costs and harm credit scores. Educating oneself on BNPL schemes is vital for responsible spending and avoiding financial strain.

Here's what's important to remember:

• Interest paid on Affirm purchases is not refundable
• Inconsistent payments may impact your credit score
• Inconsistent payments may impact your future eligibility for loans with Affirm.

Tip #3: Understand the Difference Between By Now, Pay Later vs. Layaway

Understanding the differences between buy now, pay later (BNPL) plans and traditional layaway is crucial since Walmart now offers Affirm as its BNPL service.

Key differences to note include:

• Affirm sometimes provides 0% interest, but longer payment plans may incur interest.
• Special deals with 0% APR might be available on Walmart.com, though most purchases have a variable APR.
• Affirm can be used both in-store and online at Walmart.com.
• Certain regulated items, like firearms and ammunition, are not eligible for Affirm purchases at Walmart.

- Vanessa