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It is a payment platform that offers both short-term and long-term financing options for consumers making purchases at participating online retailers.

It allows customers to split the cost of their purchases into manageable instalments, spreading the payments over several months.

It works as a payment gateway option integrated with participating online retailers.

When shopping at one of these retailers, you can select it as a payment method at checkout.

Upon selecting the option, you can apply for financing directly through the retailer’s website.

Once approved, you can complete your purchase and choose a repayment plan offered by DivideBuy.

These repayment plans typically allow customers to spread the cost of their purchase over several months, with fixed monthly instalments.

The platform then facilitates the payment process, collecting the scheduled instalments from the customer’s chosen payment method.

Yes, it checks credit as part of its financing approval process. It utilizes both soft credit checks and hard inquiries to assess creditworthiness.

Soft credit checks are typically performed during the eligibility check phase, allowing customers to pre-determine their likelihood of qualifying for financing without impacting their credit scores.

However, upon submission of an application, DivideBuy may conduct a hard inquiry, which can have a temporary impact on credit reports.

This hard inquiry is necessary for the application process and enables the platform to make informed decisions regarding financing approval.

There is no specific limit on the number of times you can use DivideBuy.

As long as your assigned purchasing power allows for it, you can use the option multiple times for different purchases.

However, it is essential to manage your repayments responsibly to avoid any issues with future transactions.

Yes, it may affect your credit as it conducts a hard inquiry when you apply for its financing option.

This hard inquiry will be recorded on your credit report and may have a temporary impact on your credit score.

Additionally, DivideBuy reports payment activities to major credit bureaus, so timely payments can positively impact your credit score, while missed payments may have a negative effect.

DivideBuy offers various payment plans depending on the specific terms agreed upon at the time of purchase.

For its 12-month plan, customers typically make monthly payments over the course of one year. This allows them to spread the cost of their purchase evenly over several months without incurring any interest charges.

Alternatively, it also offers longer-term financing options with its interest-bearing credit. Customers can choose repayment periods of up to 60 months, allowing for more flexibility in managing larger purchases.

With the 60-month option, payments may be spread out over a longer period, resulting in lower monthly payments, but it is important to note that interest charges will apply.

For most retailers offering the 2-12 months plan, customers can access up to a maximum of £6,000 in credit for financing their purchases.

However, at select merchants offering the 60-month plan, customers may have the opportunity to access higher credit limits, potentially up to £12,500.

The actual spending limit assigned to a customer is influenced by their monthly shadow limit, which represents the funds available for discretionary spending after essential expenses such as housing, utilities, and other obligations are deducted as well as the credit score.

It does not offer a virtual card feature like some other buy now, pay later services. Instead, it operates as a payment gateway option that customers can select directly at the checkout when making a purchase from participating online retailers.

Unlike virtual card-based services like Zilch, where users generate a one-time-use card number for each transaction, the platform integrates directly with the retailer’s checkout process.

Customers can choose it as a payment option and proceed with their purchase without the need for a separate virtual card.

Yes, you can pay off your loan early and close the active orders without incurring any fee.

When you make early payments, this can help you increase your assigned purchasing power on the platform since this is one of the factors it considers for measuring creditworthiness.

Yes, it offers interest-free financing options for certain repayment periods. For example, if you are approved for the 12-month payment plan, you will not incur any interest charges as long as you adhere to the agreed-upon repayment schedule and pay off the balance within the specified timeframe.

Some merchants may offer interest-bearing credit options for longer repayment terms, such as up to 60 months, which may involve interest charges.

It is essential to review the terms and conditions associated with your agreement, as interest rates may vary depending on the repayment period and the specific retailer you are purchasing from.

No, it does not offer cash withdrawal options. It is important to note that the platform is a payment solution primarily designed for making purchases at participating retailers and spreading the cost over an agreed-upon repayment period.

While you can use it to finance your purchases, it does not provide cash withdrawal services like a traditional credit card or bank account.

DivideBuy is owned by Zopa, the digital bank.