Perpay is a "buy now, pay later" card that splits purchases into weekly payments instead of a monthly bill

Perpay is not a traditional credit card. It is a payment app that lets you buy something today and pay for it in four weekly installments, interest-free. You download the app, link a debit card or bank account, and when you want to make a purchase at a store or online, you use Perpay to split that cost into four equal weekly payments. Each payment comes out of your bank account on the day it is due.

The main appeal is that you do not have to wait until you have the full amount saved, and you do not pay interest if you make all four payments on time. There is no credit check to open a Perpay account, and no monthly bill to manage. But Perpay also does not build credit history the way a traditional credit card does, because Perpay does not report your on-time payments to the credit bureaus.

Perpay makes money by charging merchants (the stores you buy from) a fee, not by charging you interest. That is why the service is free if you pay on schedule. If you miss a payment, late fees apply, and those can add up quickly.

Key Takeaways

  • Perpay splits a purchase into four equal weekly payments with no interest, but only if you pay each installment on time.
  • You need a linked bank account or debit card to use Perpay, and payments are withdrawn automatically each week.
  • Late payments trigger fees that start small but grow if you continue to miss deadlines, and Perpay can freeze your account.
  • Perpay does not report payment history to credit bureaus, so using it responsibly will not build your credit score.
  • Perpay works at most major retailers online and in-store, but not everywhere, so you should check before you assume you can use it.

How to set up a Perpay account and make your first purchase

Download the Perpay app from the Apple App Store or Google Play Store. Create an account with your email address, phone number, and a password. Perpay will ask for your date of birth and the last four digits of your Social Security number to verify your identity.

Next, link a bank account or debit card. Perpay will ask for your routing number and account number if you link a bank account, or your card number if you link a debit card. Perpay uses this to pull your weekly payments automatically, so make sure the account you link has enough money each week to cover your installments.

Once your account is set up, you can start shopping. At checkout, select Perpay as your payment method. The app will show you the four weekly payment amounts. If you agree, confirm the purchase. The first payment is usually due right away or within a few days, and the remaining three payments come out each week after that.

What fees Perpay charges and when they apply

Perpay charges no interest and no upfront fee if you make all four payments on time. However, if you miss a payment, a late fee applies. The first late fee is typically $3 to $5, depending on your state and the size of your purchase. If you miss a second payment, another late fee is added. If you miss three or more payments, Perpay may freeze your account and refer your debt to a collection agency.

Late fees are separate from your regular payment amount. If your payment is $25 and you miss it, you still owe the $25 plus the late fee. This means missing even one payment can make your total cost significantly higher than the original purchase price.

Perpay also charges a fee if you want to return an item you bought through Perpay. Some retailers handle returns directly with Perpay, but the process can be complicated if you have already made some of your four payments. Always ask Perpay's customer service how a return will affect your payment schedule before you return something.

Where you can and cannot use Perpay

Perpay works at most major retailers, including Target, Walmart, Best Buy, and many online stores. You can also use Perpay at smaller retailers and local businesses if they have partnered with Perpay. However, not every store accepts Perpay, so you should check the app's merchant list before you assume you can use it at a specific place.

Perpay does not work at all stores. For example, some grocery stores, gas stations, and restaurants do not accept Perpay. If you try to use Perpay at a store that does not accept it, the payment will be declined. You can also use Perpay online at retailers that have integrated it into their checkout, though again, not all online stores offer it.

If you are unsure whether a store accepts Perpay, open the app and search for the retailer by name. The app will tell you whether that store is available and show you any current promotions Perpay is running there.

How Perpay differs from a traditional credit card

A traditional credit card gives you a monthly bill for everything you bought that month. You can pay the full balance, pay a minimum amount, or pay something in between. If you do not pay the full balance, interest accrues on what you owe. Perpay works differently: each purchase is its own four-week loan, and you have no choice about the payment schedule.

Perpay also does not build credit history. When you use a traditional credit card and make on-time payments, those payments are reported to the three major credit bureaus (Equifax, Experian, and TransUnion). Over time, this helps your credit score go up. Perpay does not report to the credit bureaus at all, so even if you use Perpay perfectly for a year, your credit score will not improve because of it.

However, Perpay also does not hurt your credit score if you miss payments — at least not directly. Perpay does not do a hard credit inquiry when you open an account, so opening a Perpay account does not lower your score. But if you miss payments and Perpay sends your debt to a collection agency, that collection account will appear on your credit report and will damage your score.

When Perpay makes sense and when it does not

Perpay works best if you have a specific purchase you want to make but do not have the full amount right now, and you are confident you can make all four weekly payments. For example, if you need a new laptop that costs $400 and you get paid weekly, splitting it into four $100 payments might be easier than waiting four weeks to save up.

Perpay does not make sense if you are already struggling to pay your bills or if you are not sure you can make the weekly payments. Missing even one payment triggers a fee, and missing multiple payments can result in collection action. If you are considering Perpay because you do not have money for something you need, a traditional credit card with a 0% introductory period, a personal loan from a bank or credit union, or a payment plan directly from the retailer might be better options.

Perpay also does not help you build credit, so if you are trying to improve your credit score, a secured credit card or a credit-builder loan would be more useful. Those tools report to the credit bureaus and actually improve your score when you use them responsibly.

What happens if you miss a Perpay payment

If you miss a payment, Perpay will send you a notification (usually via email or text) and charge a late fee. You still owe the original payment amount plus the fee. Perpay will attempt to withdraw the payment again a few days later, and if it fails a second time, another late fee is added.

If you miss three or more payments, Perpay may freeze your account, meaning you cannot make new purchases through Perpay until you pay what you owe. Perpay may also refer your debt to a third-party collection agency. Once a debt goes to collections, it appears on your credit report and will damage your credit score for up to seven years.

If you know you are going to miss a payment, contact Perpay's customer service immediately. Some users report that Perpay will work with you to adjust your payment schedule or waive a late fee if you reach out before the payment is due. There is no may provide, but it is worth asking rather than letting the payment fail.

Frequently Asked Questions

Can I use Perpay if I do not have a credit history?

Yes. Perpay does not check your credit score or credit history when you open an account. You only need a bank account or debit card and a way to verify your identity. This makes Perpay accessible to people who are new to credit or rebuilding after past problems.

Does Perpay report to credit bureaus?

No, Perpay does not report on-time payments to credit bureaus, so using Perpay will not build your credit score. However, if you miss payments and your debt goes to collections, that collection account will appear on your credit report and will hurt your score.

What is the maximum amount I can spend on one Perpay purchase?

Perpay's maximum purchase amount varies and may depend on your account history and the retailer. Most users can make purchases up to several hundred dollars, but there is no single limit that applies to everyone. Check the app or contact Perpay's customer service to find out your specific limit.

Can I pay off my Perpay purchase early?

Yes, you can pay off your remaining balance early through the Perpay app. Paying early does not earn you a discount or reward, but it does stop future late fees from accruing if you are behind on payments. If you are current on all payments, paying early simply means you finish your purchase sooner.

What happens if my bank account does not have enough money when a Perpay payment is due?

Perpay will attempt to withdraw the payment, and if the withdrawal fails because of insufficient funds, a late fee is charged. The payment is still owed, and Perpay will try again a few days later. To avoid this, make sure your linked bank account has enough money to cover each weekly payment before the due date.