Costco recently announced it’s partnering with Affirm to offer its customers Buy Now, Pay Later plans for online purchases between$ 500 and$ 17, 500. This BNPL program allows you to divide a buy into up to 36 installments over a number of months, and it includes interest. You may be acquainted with a standard pay-in-four BNPL that allows you to divide a buy into four weekly payment without paying any interest.

But, using a BNPL plan isn’t necessarily usually a good deal, and unlike some BNPL programs, Affirm’s opportunity costs interest. It’s not really a deal if the curiosity accrues significantly to the amount you spend, under the pretense of ease or lower monthly payments. Additionally, not everyone needs to be funded ( see DoorDash, DoorDash ).

But if you’re planning to buy electronically with Costco this Memorial Day, you’ll likely face Affirm’s BNPL solution. Before you decide whether to use the strategy, here’s how to calculate how much it might actually cost you.

What is the new Affirm BNPL program from Costco?

Your regular BNPL plan often lets you cut a purchase into four regular payments over the course of a month, and didn’t charge any interest. People who purchase$ 500 or more into three to 36 monthly payments can use this BNPL plan through Affirm. &nbsp,

Interest rates range from 10 % to 36 % APR, but Costco BNPL plans charge simple interest, meaning interest accrues only on the principal balance. So, for example, if your balance is$ 1, 000 and your interest rate is 5 %, you’d make$ 50 in interest each month.

That is distinct from compounded interest, which is done in the same way that credit card balances charge interest. Compounding interest will end up costing you significantly more over time than plain attention because it snowballs. &nbsp,

Curiosity is added to the original balance each month, and interest is added to the new balance each month. Based on the previous example, the$ 50 you accrued in interest the first month would be added to your original balance of$ 1, 000. So you would start paying interest on$ 1,050 the following month, and so on.

Your credit score will affect your interest level. When you apply for a BNPL, Affirm may run a smooth record check, which means it won’t impact your credit report.

How to use Affirm at Costco

When making online purchases, you can choose Affirm as your payment process at check. &nbsp,

To be approved to use Realize: You’ll need to provide some more information.

• By uploading a photo of your choice, you’ll need to send your license, passport, identification card, or native permit. &nbsp,
• Use your mobile or computer to get a picture of yourself with your camcorder.
• You’ll need to provide your money and give your Social Security number’s final four figures.

You’ll then get from the pay plans offered. The payment period may be determined by each option, along with the interest rate you will be charged. &nbsp,

You’ll need to maintain payments through the Affirm game or on affirm.com. You can set up automatic payment, make monthly payments automatically, or pay off your balance first. If you pay it off quick, you’ll pay less attention.

Should you use it? We perform the mathematics.

Having the ability to finance a larger purchase with BNPL can be helpful, but it can occasionally become difficult to predict how much you’ll actually be paying. We’ll move through a dozen purchase example to give you an idea of how much you may pay. &nbsp,

Aside from the fact that Costco costs a 5 % non-membership cost, this test was also helpful to me. So you’re figures may seem different if you’re a Costco part.

8-piece Modular Sectional from Thomasville Lowell Corduroy

This 8-piece compact regional might be outside on social media if you’re looking for a new couch. It costs$ 2, 499.99, or$ 2, 834.21 after estimated taxes. &nbsp,

I was given a transaction plan of 12, 18, or 24 weeks after the Realize sweet credit check. The longer the strategy, the higher the interest charge. I even got sucked in by the non-member tax, which is$ 125 in this instance.

For a total cost of$ 2, 958.44, I would have to pay$ 124.23 in interest on the 12-month plan, which would include 12 payments of$ 246.54.
• The 18-month plan would cost$ 182.71 in interest with 18 payments of$ 167.61, for a total cost of$ 3, 016.92.
• The 24-month plan would cost$ 342.16 in fascination with 24 payment of$ 118.18, or$ 3,007.37 overall. &nbsp,

For all plans, I was given an APR of 9.99 % but with something called” Costco Value” that rate was reduced to 7.99 %.

LG 65″ School – OLED C4 Series – 4K UHD OLED Television”

How about a new Television to go with that sofa? The LG 65″ School– OLED C4 Series– 4K UHD OLED Television, which was chosen as our writer’s choose for the best TVs for 2025, costs$ 1, 299.99 at Costco, or$ 1, 474.19 in addition to the$ 65 non-member cost. &nbsp,

Again, each plan came with an APR of 9.99 %, which was reduced to 7.99 % by” Costco Value” .&nbsp,

What Affirm provided is what:

According to Costco’s estimate, the 6-month plan would cost me$ 34.56 in interest, with six payments of$ 251.46, making the total cost$ 1, 508.76.
• The 12-month plan would cost me$ 64.63 in interest, with 12 payments of$ 128.23, for a total cost of$ 1, 538.76, according to Costco’s estimate
• According to Costco’s estimate, the 18-month plan would cost me$ 95.06 in interest, with 18 payments of$ 87.18, for a total of$ 1, 569.24.

With 7, 000 Pa of pressure strength, the Roborock Qrevo MaxV Robot Vacuum and Mop has.

What about a new machine pump to keep your entertainment room clear? The Roborock Qrevo MaxV Robot Vacuum and Mop with 7, 000 Pa Suction Power is available at Costco for$ 819.99. After taxes and a$ 57.50 non-member surcharge, I would have to pay a total of$ 947.63. Affirm offered a 9.99 % APR ( 7.99 % from Costco Value ) and:

A six-month plan would cost$ 22.21 in curiosity, with six payment of$ 161.64, or$ 969.84 overall.
• A 12-month plan would cost$ 41.53 in interest, with 12 payments of$ 82.43, for a total of$ 89.16.
• An 18-month plan that would cost$ 61.09 in interest, with 18 payments of$ 56.04, for a total of$ 1, 008.72.

Does BNPL have an effect on my credit report?

Affirm records your TransUnion and Experian bills on-time and in-time. The effects of BNPL payment on your record score&nbsp, depends on which credit scoring model is used. &nbsp,

For instance, FICO Score 8 does take into account BNPL bills that are negative or positive, but FICO Score 9 does. FICO Score 8 is still the most widely used credit report, so you could see an increase or decrease depending on your bills.

Does BNPL help you save money?

A big settlement can be broken up into bite-sized pieces by BNPL, which can help you get place in your monthly budget. But, it doesn’t save you cash. When you factor in the interest you’ll pay over time, the item will cost you more than if you had initially paid the full amount. Consider setting up a sinking fund to pay for the order in the event that you want to save money.

Can you avert interest costs entirely with the Costco/Affirm BNPL ideas?

No. If you use one of these ideas, you’ll always have to pay attention. If you’re looking to finance a purchase over numerous months and avoid interest charges, acquire a credit card with an introductory 0 % buy APR. &nbsp,

There are excellent benefits credit cards that offer promotional periods that allow you to earn points or money back. But keep in mind you’ll have a hard funds check when applying for a credit card, which will usually lower your credit score periodically by a couple points. Additionally, you’ll start paying interest on your credit cards as well, which is more than 20 % of credit card interest rates, before the promotional period ends.

Additionally, you may only take into account a new card if you really need one and continue to receive price once the promotional period is up.

The common pay-in-four BNPL also provides a no-interest funding solution, but four days is much shorter than the 12-, 15- or 21-month beginning purchase APR you can get with some credit cards. Additionally, there is typically a maximum amount you can borrow under this kind of BNPL plan.

Costco is best known for selling bulk purchases of household goods and groceries ( along with ostensibly inflation-proof rotisserie chickens ). If you’re thinking of becoming a member, you could save$ 20 with a digital gift card by signing up for the Gold Star membership * for$ 65 through StackSocial.

This Gold Star membership is valid for one year and must be redeemed before June 30, 2025, following the completion of your purchase. Within two weeks of activating your card, you will receive a gift card email.

Legal Disclaimer:
*A valid email address and automatic renewal of your Costco membership on a Visa® card are required at the time of signing up for a Digital Costco Shop Card. At the time of signing up, incentives will not be sent to you if you choose not to opt out of auto renewal. Valid only for new members and those whose memberships ( Primary and Household ) have been expired at least 18 months or more. Only valid for nonmembers during their first year of membership. Not valid for upgrading or renewing an existing membership. Promotion may not be combined with any other promotion. Within two weeks of successful sign-up and auto-enrollment, a digital Costco Shop Card will be emailed to the primary member’s email address at the time of signing up. The Digital Costco Shop Card cannot be used for cash other than as required by law. Costco is not liable for incentives not received due to entry of an invalid address during sign-up. Digital Costco Shop Cards are not accepted at food court kiosks in the United States or Canada. Use of the card without your permission is not a matter of Costco Wholesale Corporation or its affiliates. Use the provided single-use promo code when entering your payment information. Costco offers a$ 65 annual Gold Star membership. An Executive Membership is an additional$ 65 annual upgrade fee. Each membership includes one free Household Card. may be taxed on sales. Accepts all Visa cards, as well as cash, checks, debit/ATM cards, EBT and Costco Shop Cards. Departments and product selection may vary. ( Note: After entering the promo code, you will see a$ 0.01 deduction on your membership cost. ) This indicates that your promotional code has been used successfully.