Zilch has now launched being able to use Apple Pay with your credit account that allows you to spread the cost over 6 weeks
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I do like Zilch and it helps being able to split payments over a set period of time and the fact it is interest free. I also like the fact that every time you pay you pay off a purchase, it has given me a little increase on my overall limit.
I’m glad they’ve added Apple Pay too. It’ll be really useful to be able to use it on the highstreet.
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Trouble with all these companies if that they give disproportionately large limits to people with defaults/ccjs
The ease of use then results in them not paying other creditors/bills
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You can link your bank account to Zilch via open banking, so I assume they only give limits to what you can really afford? I’m sure they should also run the necessary checks on originally signing up for an account with them.
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It’s a displacement affect. They usually obtain repayment, but it can be at the cost of funds required to pay other bills or creditors.
I have seen individuals with very poor credit and previous or active debts outstanding given credit limits they would not obtain elsewhere. They’re not performing hard credit searches when onboarding. This is the same for all buy now pay later firms.
Generally, what I see is a bank statement full of buy now pay later payments and a credit file with active catalogues/low limit credit cards/failed HP providers or the like falling behind as they’re cast aside. This applies to people working but also people on low, benefit derived income.
The firms offer a service that works for many, but their operating as much in the sub prime lending space as they are the fintech.
Can’t say its not a great disruptive business model…
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