How to Split Payments and Avoid Additional Interest
When shopping online, many people look for ways to pay in installments to make purchases more manageable.
However, it’s crucial to understand how to split your payment without accumulating additional interest. In this article, we’ll show you exactly how to do it.
Check the Payment Options
Before proceeding to checkout, verify if the online store offers installment options. Many e-commerce websites, including Nordstrom, provide the ability to split payments into installments. Usually, this option is available for orders above a specific amount.
Choose the Right Payment Method
Select a payment method that offers installment plans. Credit cards and third-party services like PayPal or Klarna often allow customers to pay in installments. Be sure to select one of these methods to access the installment option.
Select Installments at Checkout
During the checkout process, after choosing your payment method, look for an option to split the payment into installments. The website will show you the terms, including the number of installments and the cost per month. Make sure to choose the option that best fits your budget.
Pay Attention to the Terms
Ensure that the installment option you choose is interest-free. Some stores may offer interest-free installments for a limited period, while others may charge interest if the payment period exceeds a specific duration. Be sure to read the fine print to avoid unexpected charges.
Choose a Shorter Payment Period
To avoid high-interest rates, select the shortest payment period possible. Many installment options allow you to pay over several months, but paying in fewer months often means no interest or lower interest rates. Always aim to pay off the balance sooner rather than later to avoid paying extra.
Watch for Hidden Fees
Some installment payment options may come with hidden fees. For example, late payment fees or service fees might be added if you miss a payment deadline. To avoid additional charges, make sure to track your payment due dates and pay on time.
Use Promotional Offers
Some online stores, like Nordstrom, offer promotional interest-free installment plans during sales events. Take advantage of these offers to pay in installments without incurring any additional costs. Keep an eye on these promotions and plan your purchases accordingly.