- Find out how the Quadpay installment plan works.
- Learn if paying with Quadpay affects your credit score.
- Is this the buy now pay later service that works for you?
Are you looking to purchase something online? Is your credit card close to being maxed out? Why not try Quadpay as an alternative to financing your purchase?
This post unpacks everything you need to know about this innovative point-of-sale financing service.
In our service review
How does Quadpay work?
Founded by Brad Lindenberg in 2017, Quadpay is a point-of-sale financing company. If you're checking out with an online retailer, look for the Quadpay option on the page. If the retailer works with Quadpay, you can apply for financing on the spot. The Quadpay algorithm takes seconds to approve you for the loan, and you can take your product and pay later.
Quadpay offers you interest-free loans available to finance small purchases. To start with Quadpay, link your debit or credit card to the mobile app, and register your account.
When Quadpay approves a loan, you'll have to pay 25% of the purchase price upfront, as sort of a down payment of the loan facility. You'll make three further installments with equal amounts over the next six weeks. These repayments are automatically collected from your credit or debit card account, so you need to make sure there is enough credit limit left, or enough cash in the bank account to which your debit card is linked.
Late payment fees
Although Quadpay does not charge interest, if you don’t meet each repayment obligation in full by the due date, you could be charged a late payment fee. The maximum number of late payment fees you can incur for each purchase is three.
Who is Quadpay for?
Quadpay is for individuals looking for an alternative way of financing their online or offline purchases. Instead of relying on a credit card, Quadpay gives you an alternative financing option at point-of-sale.
With Quadpay, you can choose to take your item on credit and pay it off in four easy installments, with the first payment due at the time of purchase.
Don't take out a second credit card; open a Quadpay account. It's a way to finance small purchases with no interest due on your outstanding balance.
Who accepts Quadpay?
There are thousands of retailers and online merchants offering customers Quadpay payments at checkout. Check on the payments page at your e-commerce retailer to see if they provide Quadpay. Some of the brands and stores offering Quadpay payments include the following.
- Plus lots more
Quadpay and your credit score
Quadpay doesn't normally report your application for a loan account to the credit bureaus, because it doesn’t make a “hard” credit check. This means that, unlike a credit card application, your credit score probably won’t go down when you apply. But it’s worth noting that Quadpay’s terms of service say that they do reserve the right to request your credit report.
These same terms of service also say that failure to meet your payment obligations may result in collection efforts, which “may involve ... submitting your information to a collections agency.” So being in default with a Quadpay account could have a negative impact on your credit score.
If you always make full repayments on time, you have nothing to worry about.
Is it better to use Quadpay or a credit card?
Some credit cards may offer you 0% APR for a limited time when taking out a new credit card. You get the same thing permanently with Quadpay, which offers interest-free repayments on small loan amounts.
However, with Quadpay you have to make a 25% down payment at the tine of purchase. With credit cards you don’t need to make a down payment.
Your Quadpay account links to your credit card, and you get to benefit from your card issuer's rewards program when spending with your Quadpay account.
In the end, the question of whether Quadpay or a credit card is better will come down to the features you have on your credit card, and whether or not you normally carry a balance on your credit card or pay it off in full each month.
Pros and cons
- You get easy access and instant approval for financing for your purchases.
- No hard credit check when you apply means you don't have to worry about damaging your credit score.
- No interest charges and no commissions or account fees, so you can keep more of your own money.
- Wide range of partner retailers both online and offline.
- Automated repayments and reminders so you don’t forget to pay and incur an unnecessary fee.
- Fund your account using a credit card if you want to continue earning rewards points.
- Late fees charged on missed payments, which can add up over time if you aren't careful.
- Not suitable for large purchases.
- Your positive credit activity does not get reported to credit bureaus, so your credit score will not improve.
- Quadpay may report late payments and defaults to credit bureaus, negatively affecting your credit score.
Affirm. Affirm is another buy now pay later market leader. With Affirm, you get payment terms up to 12 months, and total credit limits of up to $17,500, depending on your credit score. However, Affirm does deal with the credit bureaus, and late payments affect your credit score.
Klarna. This Swedish company offers point-of-sale loans with a wide selection of brands and retailers available in its payment network. With Klarna, you get four installments to pay off your loan.
Sezzle. Another point-of-sale financing company offering you four repayments spread over six weeks, with no hard credit check. Reschedule your late payment for free, or pay $5 for a second rescheduling.
Does Quadpay run a credit check?
Yes, Quadpay runs a "soft" credit check to confirm your identity when you take a Quadpay loan. However, the company doesn't run a "hard" credit check. Hard credit checks can reduce your credit score, but soft checks have no impact.
How does Quadpay make money?
Although Quiadpay charges no interest on its loans, it does make some of its profit from late payment fees. However, the bulk of its revenue comes from transaction fees charged to participating retailers.
How can you fund your Quadpay account?
When you sign up for your Quadpay account, you'll need to link your credit or debit card. Quadpay will automatically debit your connected account at the agreed dates for your loan repayments. Depending on which loan option you take, you'll keep making payments until you settle your outstanding balance.
Can you earn rewards points using Quadpay?
Quadpay doesn't offer a rewards program. However, you can still earn points on your linked credit card. Link your credit card to your Quadpay account, and earn all the rewards you would with your card issuer.
Why does Quadpay reject some applications?
Quadpay assesses customers at the time of checkout. Therefore, if you don't provide accurate information, the system may reject your application. You may also have problems if you were late with your last payment, or if this new purchase would make you exceed your credit limit.
What happens if you never use your Quadpay account?
If you don't log into your account or use it in two years, Quadpay reserves the right to close your account. However, Quadpay will retain the personal information of the account holder unless otherwise instructed through official channels.
Is it possible to get a higher or lower credit limit?
Quadpay will increase your credit limit after you successfully pay off a few loans. However, the company doesn't mention how much it increases the limit or the exact terms surrounding a limit increase. Speak to the customer service team for more information.
What happens if I miss a payment?
If you're late with your Quadpay installment, or you don't pay the balance in full, Quadpay charges you a late fee, and the outstanding balance and fee add to your next payment amount. Quadpay won't charge you more than three late fees. However, paying late may jeopardize your chances of getting your next Quadpay loan. Your late payment could also be reported to a credit bureau, negatively impacting your credit score.
How do I close my Quadpay account?
If you want to close your Quadpay account, you can do so at any time. Make sure your balance is paid in full, and contact the support team. The service agent walks you through the process of terminating your account. Ensure you remove yourself from the mailing list and get confirmation that the company removes your information from its database.