Did you know that "back in the day" Timberdoodle refused to take credit cards out of fear that we were encouraging families to buy more than they could afford? It sounds absolutely ridiculous now, but in that era of mailed checks, we felt it was perfectly reasonable.
So how did we get from there to accepting payment plans? And how do payment plans work on our site anyway? Deb and Hope explain why and other details in this video:
Many of you are asking about payment plans this month, so here are a few of the nitty-gritty details for you on the two options we offer.
1. Paypal's Pay Later
PayPal offers pay-later options, including no payments and no interest for 6 months on qualifying purchases. For some of you, this is a perfect solution, particularly if you anticipate a relatively short-term payoff! Of course, if you choose this plan you’ll want to keep in mind that the interest will catch up with you if you don’t pay within the six months... Also, the purchase amount they will approve for you varies, but it's an option to consider.
To apply for PayPal Credit, select “PayPal” under Payment Methods at checkout, and then look for a link to apply from PayPal’s site.
You can find more information on PayPal Credit here: https://www.paypal.com/us/webapps/mpp/paypal-credit
2. Klarna Credit
Klarna Credit is basically a short-term loan. Applying is simple. When you get to the payment step at checkout, simply select the "Slice it. Pay over time with Klarna" option under Payment Methods, and once you click “Complete Order” you will be redirected to Klarna’s site to complete your purchase securely. They have a quick pre-approval process, and will let you know in a matter of seconds if you’ve been pre-approved. If so, you’ll be offered 6-36 month financing on your purchase, with rates tailored to you and your credit.
A quick calculation here showed that if you purchased a $1,000 kit and paid for it over a year, you'd be paying about $100 a month including interest. Yes, you're paying interest and I think we'd all agree that is never ideal. However, if this enables you to budget the year in a reasonable manner, we want you to have that option.
- Planned Payments: 6- to 36-month payment terms are available at a reduced promotional APR, and you can know up-front exactly what your total cost will be.
- Flexible Month-to-Month: No fixed term commitment. You can pay your balance in full or make the minimum monthly payment (interest charges may apply); it’s your choice.
At that point, you can opt to go ahead with the purchase using Klarna, or go back and choose a different payment method if you prefer not to use Klarna.
If Klarna is not able to approve your purchase, they will notify you of their decision and the reason.
Obviously, interest will be applied over the term of your payment plan, but there are no added fees. For those of you who like to do your homework, Klarna’s Credit Account Agreement, including interest rate and other details, can be found here:
Complete Terms and Conditions are available here:
These are Professionals
Timberdoodle is simply not a bank, so we have researched the options and made these two available to you. Through them you have many more options, but we have no control over the sign up process or which rates, etc. you are offered.
In any case, you’ll want to approach any pay-later options with a healthy level of caution. Make sure that if you do choose a credit plan, it’s something that fits within your educational budget.