Sezzle Review | The Ascent

What is Sezzle and how does it work?

Sezzle is a payment app that offers interest-free loans that you can use to shop online at participating merchants, buy what you want and pay for your purchases in four installments over six weeks.

When you know you will be using Sezzle to make a purchase, you have the option to purchase through the app or website, or directly from a merchant’s online site. For example, let’s say you make a purchase for $ 100. The first installment is usually 25% of the total purchase price, or $ 25. The next three installments are also $ 25 until the debt is paid off in full.

Applying for a Sezzle loan will not affect your credit score as the company does a “soft” credit check. If you’ve used Sezzle before and have had payment problems or any other problem, it is possible that you do not qualify for a loan. However, Sezzle provides an instant response to your application so you don’t have to wait to get feedback.

The company also offers a program called “Sezzle Up” that allows you to opt for credit reporting agencies. That means Sezzle reports your payment history to the three major credit bureaus – Experian, TransUnion, and Equifax. By making every payment on time, Sezzle Up gives you the opportunity to build (or rebuild) your credit history.

As a new customer, you may have a lower than expected credit limit. Over time, the credit limit will increase with a steady payment history.

Although Sezzle does not charge interest on its loans, fees may apply in certain situations. Let’s say you make a payment with your debit card and the payment fails. The company will give you 48 hours to resolve the issue, either by making sure you have enough money in your bank account to settle the payment or by other means. If you don’t fix the problem within 48 hours, Sezzle will charge $ 10.

When you take out a loan for the first time, you agree to a specific repayment schedule. Sezzle allows you to defer any of these payments for free. They charge a $ 5 fee for each additional payment postponed.

If the payment fails, you will not be able to place a new order.

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