With Afterpay, you can pay for items you want without paying the whole amount upfront. There are some essential points to keep in mind while it has many perks. Such as, there are no interest charges with Afterpay, but late fees are possible. The Afterpay app also lets you set a spending limit that increase as you make on-time payments. You cannot purchase whatever you want using this BNPL app. It’s because the spending limit fluctuates based on your behavior with the account.
There are some policies that any Afterpay user has to maintain while using it in a shop. If you can obey the terms, you can deal with the spending limit. And you’re only going to have problems with Afterpay if you misunderstand it or misuse it. So, knowing your afterpay spending limit is important, but ways to increase the limit are more important. Here is why I am here to acknowledge you on the Afterpay spending limit.
Is there any spending limit when using Afterpay?
Yes. You can spend a maximum amount depending on how you use your Afterpay account. As this maximum varies from customer to customer, Afterpay does not specify what it will be. Your maximum will be higher if you have been using Afterpay for some time and are in good standing. New customers or those with a history of late or declined payments may have a lower maximum amount. Depending on the store, maximum purchases may also vary.
What is Afterpay’s spending limit?
Every type of debt has some risks, and that’s the first thing to keep in mind, and Afterpay is no exception in this regard. Your Afterpay spending limit is generally determined by how you use your account. The overall outstanding debt limit is $2,000, while there is a $1,000 limit per transaction. The limit will be much lower for new customers until they become more established. When you sign up for Afterpay, you are given a pre-set spending limit of $600.
Ways to increase the Afterpay spending limit
If you use Afterpay responsibly (keeping up with payments, not missing any terms) and use it for a long time, your limit will increase. It takes about a year to increase the Afterpay limit to $3000, initially $500 for newly registered users. The following are a few tips to help you raise the Afterpay limit.
1. The length of time you’ve used Afterpay
When you use Afterpay, how much you can spend depends on how long you use it. You’ll have a lower spend limit if you’re a new user.
The spending limit will go up if you’ve been responsibly using the platform for a while. You should make your payments on time and reschedule them if you can’t.
2. Keep your Afterpay bills up to date
The amount you can spend depends on your payment history. There are a lot of factors that affect your spending limit. A few of them are;
- Late payments
- What’s the frequency of late payments
- How often do your scheduled payments decline?
You can’t spend more than you can afford if you haven’t these factors in mind. Make sure you make all your scheduled payments on time to increase your Afterpay limit.
You can also pay your installments ahead of time or clear all your bills at once.
3. Estimated spending limit for your account
The essential requirement for Afterpay is that you have a credit or debit card account. Based on your account status, Afterpay estimates how much you can spend.
Your spending limit on Afterpay depends on how you use your account. Your Afterpay limit may increase if your account has a high spending limit.
4. Make sure your credit card is attached
You can increase your Afterpay limit by attaching a credit card. With a credit card, you have more spending power to use Afterpay.
5. Make sure you don’t order too often or too little
You can also get a limit on spending if you order too frequently or too little on Afterpay. We recommend ordering only 2-3 times a month if you’re a new customer. You can also have issues if you order something expensive, especially if you’re a new user. Make it easier for yourself by buying less expensive items and limiting your orders. You’ll be able to increase your spending limit once you build trust with Afterpay and obey the rules.
How do I know how much I can spend on Afterpay?
On the Afterpay website or app, you can see your estimated Afterpay limit. The listed amounts are just estimates. The actual approved amount depends on recent activity and merchant approval. It’s up to retailers to set limits on their websites and stores.
Can I reduce my spending limit on purpose?
With Afterpay, you can pay your first payment and then pay the rest in installments within the spending limit. Afterpay offers shoppers the option to reduce spending limits to encourage them to stick to a budget. You can contact customer service to determine the limit and how long the restriction should last. Using the same, you can apply to lift restrictions.
Can Afterpay help me raise my credit score?
Your credit score won’t improve if you pay on time with Afterpay since they don’t report to credit bureaus. Using your Afterpay account to connect your credit card and paying it off on time does improve your credit score. In response to the popularity of BNPL services, credit bureaus are likely to start including that info.