Buy Now Pay Later has been a handy lifeline for lots of families, but new regulation and stricter checks will mean more people will find they can’t shop using the likes of Klarna. If you need to replace an essential household item, it is worth knowing what your other options are. And I’m keen to let you know about a charity-owned, not-for-profit lender that helps people spread the cost of essential purchases in a fairer way.
Why BNPL might get harder to access
Buy Now Pay Later (BNPL) services such as Klarna, Clearpay, PayPal Pay in 3 and Zilch have become part of everyday online shopping. They can be useful when you want to split a cost into smaller payments, but they are still a form of credit, and that means borrowing needs to be affordable.
New rules have brought in stronger checks, including affordability checks and more reporting to credit reference agencies. That is a good thing if it stops people borrowing in ways that make life harder, but it may also mean some families who have used BNPL sensibly find they are turned down in future.
And let’s be honest, it is often when something important breaks that you need help most. A fridge, cooker, washing machine or child’s bed is not exactly a “nice to have”. These are the things that keep family life ticking over.
An ethical option for essential household purchases
Fair for You offers loans for essential household products through its own website. You can browse quality items on the Fair for You website, apply for a loan for the product you need, and, if approved, spread the cost with affordable repayments.
This can include items such as Whirlpool washing machines, fridge freezers, cookers, beds, furniture and other household essentials. It is designed for those moments when going without is not really an option, but paying the full amount upfront is not possible either.
Fair for You is not a BNPL provider. It is a not-for-profit lender, wholly owned by the Fair Credit Charity, and its approach is based on checking what someone can afford rather than simply looking at their past credit history. Loans are subject to eligibility and affordability checks, of course, but the aim is to provide a fairer route to essential credit.
How Fair for You product loans work
One of the most useful things about Fair for You is that the loan is linked to the item you need. You choose from products on the Fair for You website, apply for finance, and if your application is accepted the item is delivered directly to your door.
Repayments can be set up weekly, fortnightly, four-weekly or monthly, which may suit families better than a fixed BNPL schedule. There is also an online loan calculator so you can look at what repayments might be before you apply.
The big benefit here is clarity. You know what you are borrowing for, what you will repay, and how the repayments fit into your budget. That matters so much when money is tight.
What about the Shopping Card loan?
Fair for You also offers a Shopping Card loan, which is a loan put onto a prepaid Mastercard that can be used with approved retailers. It gives a little more flexibility if you need to shop online or in store at places such as Argos, Currys and Dunelm.
This may be helpful if you need smaller essentials, or if you want more choice about where you buy from. As with any borrowing, it is important to check the repayments carefully and only borrow what you can afford.
And the Iceland Food Club?
You may already have heard of the Iceland Food Club, which Fair for You runs in partnership with Iceland. This particular loan is up to £100 and is interest free so very useful for school holidays when food costs soar and money is tight.
Things to think about before borrowing
- Is the purchase essential, or can it wait?
- Can you afford the repayments alongside bills, food and other commitments?
- Have you compared the total cost, including any interest?
- Do you understand what happens if you miss a payment?
- Would a grant, local support scheme, credit union or savings option be suitable instead?
Borrowing can be helpful when it is affordable and planned. It can become stressful very quickly if payments are unrealistic, so it is always worth taking a little time to look at the numbers. Fair for You will point you towards other sources of support if they feel that borrowing is not the right thing for your finances.
The bottom line
If Buy Now Pay Later becomes harder to access, that does not mean families should be pushed towards high-cost credit or left without essentials. It does mean it is sensible to know what responsible alternatives are out there before the fridge packs in or the cooker stops working.
Fair for You’s product loans are worth looking at if you need an essential household item and want a lender that focuses on affordability, flexibility and fair credit. You can also explore the Shopping Card loan and Iceland Food Club on the Fair for You website.
Fair for You loans are subject to eligibility and affordability checks. Missed payments may affect your credit file. Only borrow what you can afford.
