Credit Building > How to pay on Amazon in monthly instalments

How to pay on Amazon in monthly instalments

Wollit Team3 minute read · Updated 1st July 2024

If you want to pay for your Amazon purchases in monthly instalments, you have three options:

Use a credit card.
Use Instalments by Barclays.
Or use Amazon Monthly Payments.

Credit cards are not necessarily the best option. They might sometimes give you rewards for shopping but also come with high interest rates and the risk of too much debt.

Let’s look at the Instalments by Barclays and Amazon Monthly Payments instead and see how they work.

Instalments by Barclays

Instalments by Barclays is a payment option on Amazon UK that lets you finance purchases of over £100 in equal monthly instalments.

Here is how it works:

You can spread the cost over a period ranging from 3 to 48 months.
It charges an APR of 10.9%, with promotional rates and interest-free financing available at times.
You’ll need to spend at least £100 per order.
You can’t use Instalments by Barclays for things like Amazon Gift Cards, Kindle books, groceries, or out-of-stock products.
You can make repeat purchases without needing to reapply as long as you stay within your overall credit limit and under your monthly payment limit.

To pay with Instalments by Barclays, select “Instalments” at checkout if the item is eligible and then apply. If Barclays approves your instalment request, you’ll get an email from Barclays confirming your payment and your repayment schedule.

To repay it, you’ll simply use Direct Debit.

Here are the eligibility criteria:

You need to be at least 18 years old;
You’ll need to have at least three years of UK address history;
You’ll also need to be employed, self-employed, or retired with a regular income and up to date on other credit repayments.

In other words, you can’t use Instalments by Barclays if you have bad credit or no credit history at all. It’s not an option if you’re new to the UK, either.

Amazon Monthly Payments

If you’re new to the UK or have a poor credit history, Amazon Monthly Payments might be a better option for you.

In fact, it might be a decent option even if you have good credit, as it’s an interest-free credit line.

Here is how Amazon Monthly Payments works:

You can use it to pay for eligible purchases over £100 in 5 instalments over four months.
The first payment is due only when the item ships.
No interest is charged, but you are limited to one product category or Amazon device per monthly payment program.

Also, eligibility is solely based on your Amazon account history and purchase, not your credit score.

To pay through Amazon Monthly Payments, when you’re on the product page of an eligible item sold by Amazon, select to pay for your purchase with “Monthly Payments.” Add the product to your cart and continue checkout as normal.

You’ll then be charged the full price of the qualifying item in five equal monthly payments, with no interest added.

Do I need to go through a credit check if I want to pay on Amazon in instalments?

There is no credit check involved for Amazon Monthly Payments. This is because Amazon Monthly Payments is not a regulated loan, simply a credit facility extended by Amazon.

However, Instalments by Barclays does require a credit check. This scheme is fully regulated by the Financial Conduct Authority (FCA) and requires customers to undergo a hard credit check to ensure they can afford the credit.

In other words, it all depends on which instalment option you choose.

What happens if I miss a payment?

Here is one of the most significant differences between Barclays and Amazon:

Instalments by Barclays is a regulated loan, so it shows on your credit report. If you miss a payment, your credit score will be impacted, and the missed payment will stay on your report for the next six years.
Amazon Monthly Payments is simply a credit facility offered by Amazon. It’s not a regulated loan, and it doesn’t show up on your credit report. If you miss a payment, your Amazon account might be closed, but that’s about it.

Neither of these payment plans charge late fees, but if you struggle to make the monthly repayments, you should contact Barclays or Amazon as soon as possible. In extreme cases, you might be referred to a Debt Collection Agency.

What other options do I have?

For significant purchases, using a good credit card (one with low APR and great rewards) is a much better choice. You could even spread the cost of your purchases over a year or two with no interest and earn cashback on each purchase.

However, to become eligible for a good rewards card, you’ll normally have to have an excellent credit score. The good news is that there are many tools and apps available to help you improve your credit.

One such app is Wollit. Wollit reports a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies, helping you build a history of debt repayments safely and affordably.

It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you’re responsible and pay your bills when they’re due.

In time, having a history of timely debt repayments will improve your credit score, and you’ll find yourself eligible for much better payment options – not only on Amazon but on other stores as well.