Walmart Layaway Is No More: Is Affirm Worth It?

Walmart's Layaway partnership with Affirm for flexible financing options. Learn how to use Buy Now, Pay Later for your purchases.

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: You can finance the latest smartphones and laptops, as well as tv's and gaming systems.
• Home and Garden: Furniture, appliances, outdoor equipment, mattresses as well as pricey home improvement tools.
• Apparel: Select clothing for the whole family may be eligible for layaway too, including shoes.
• Groceries: That's right, your grocery purchases can also be included in buy now, pay later.
• Toys: Toys for all ages and from all of the big brands.
• Sports and Outdoors: Equipment for sports and fitness equipment.
• Automotive: Essential auto parts and accessories are also included, as well as gas!
• Health and Beauty: Skincare, makeup, and wellness products products

Keep an eye out for promotion offer like 0% interest on the Walmart Affirm Buy Now, Pay Later program page.  

Benefits of Walmart Layaway with Affirm

Walmart’s Affirm program lets you split your purchase into smaller payments instead of paying the full amount upfront. This is a great benefit for those larger purchases, unexpected purchases you need to make, or if you are having a few rough months paying your bills.

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

• Flexible Financing: Affirm offers several options for payment plans like spreading payments of 6 or 12 months.
• No Waiting Period to Enjoy Your Purchases: You get your purchases right away, not like traditional layaway where you had to wait.
• No Risk of Cancellation Fees: Affirm has no cancellation fees, and checking if you are eligible does not effect your credit.
• Improve Your Credit Score: When you finance through Affirm and make your payments on time, you can actually improve your credit score!
• 0% Interest Promotions: Select products offer a first time 0% APR interest, which is basically a free loan if you qualify!

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

1. Complete Affirm Application: Apple for 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. Approved? you're ready to shop!
2. 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.
3. Shop in-Store or Online: Begin by adding the items you want to purchase to your Walmart shopping cart, look for the Affirm logo  online under the price to see if it qualifies.
4. Choose Affirm as the Payment Option: If Affirm is available, select it as your payment option during checkout. Shopping in-store? Scan your Affirm barcode at checkout.
5. Repayment with Affirm: After your purchase, you'll make monthly payments to Affirm based on the plan you setup.

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

While for many the Affirm buy now, pay later is a useful benefit to ease financial burden, there are definitely a few things you should consider if you want to maintain good credit and lower fees.

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.

Is Walmart's New Layaway (Affirm) Worth it? Here's My Take:

Managing big purchases can be a big burden when money is tight. Walmart Affirm offers a way to break up payments into smaller, more manageable chunks. But like any financing option, it comes with both pros and cons and isn't right for everyone.

5 Reasons Walmart Affirm is Right for You:

1. Lets you spread out big purchases into manageable monthly payments.
2. Simple approval process with no hidden fees.
3. Can help you plan and budget for necessary items without using credit cards.
4. Can help you build or improve your credit if you make your payments on time.
5. It's easy! Quick checkout on Walmart's site and in-store.

5 Reasons Walmart Affirm Might Not Be Good:

1. Interest rates can be high for longer-term plans.
2. Late or missed payments result in fees and potentially hurt your credit.
3. It's only available for certain items and transactions, not everything you may want.
4. It can be tempting to spend beyond your immediate means if your not careful.
5. Not ideal for someone who prefers using cash or credit cards rewards from cashback cards or travel cards.