Yes, you can buy gift cards using Clearpay. Clearpay, also known as Afterpay in some countries, is a buy now, pay later service that allows shoppers to split purchases into 4 interest-free installments paid every 2 weeks. With Clearpay, you can purchase gift cards from participating retailers either in-store or online.
How Does Buying Gift Cards with Clearpay Work?
Purchasing gift cards using Clearpay is very simple. When checking out with Clearpay, the total cost of the gift card will be split into 4 equal payments. You’ll only need to pay the first installment at the time of purchase. The remaining 3 installments will automatically be charged to your payment method every 2 weeks until it’s fully paid off.
For example, if you purchase a $100 gift card using Clearpay, you’ll pay $25 as the first installment. Then $25 will be charged 2 weeks later for the second installment, followed by another $25 after 4 weeks, and the final $25 after 6 weeks. This allows you to buy gift cards now and spread out the payments over time.
Requirements for Using Clearpay
To use Clearpay for gift cards, you’ll need to meet the following requirements:
- Be 18 years or older
- Have a debit or credit card to make the installment payments
- Be a resident in an eligible country where Clearpay is available
- Pass credit and identity checks
As long as you meet the requirements, you can complete the quick and easy online application to get approved for Clearpay. There are no long-term contracts or commitments. You only use Clearpay when you want to split a purchase into installments.
Gift Card Retailers Accepting Clearpay
Many popular retailers allow customers to purchase both physical and digital gift cards using Clearpay. Some examples include:
Retailer | Physical Gift Cards | Digital Gift Cards |
---|---|---|
Target | Yes | Yes |
Amazon | No | Yes |
Best Buy | Yes | Yes |
Sephora | Yes | Yes |
Nordstrom | Yes | Yes |
The Home Depot | Yes | No |
This table shows just a few examples of major retailers that allow customers to use Clearpay for gift card purchases. The availability may vary for each merchant. Some merchants may only allow Clearpay for physical gift cards, while others may offer it for both physical and digital gift cards. It’s always best to check directly with the retailer if Clearpay can be used when buying gift cards.
Benefits of Using Clearpay for Gift Cards
There are several benefits to using Clearpay for gift card purchases:
1. Easy budgeting
With Clearpay, you don’t have to pay the full gift card amount upfront. The installments make it easier to budget for the purchase. This can be helpful if you want to buy a high-value gift card but don’t have the cash on hand to cover the total cost at once.
2. More time to pay
Spreading out the gift card purchase into 4 interest-free installments gives you an additional 6 weeks to pay compared to paying in full at the time of purchase. This gives you more flexibility with your finances.
3. Access to gift cards anytime
Clearpay allows you to get the gift card immediately even while you’re still making the installment payments. This means you can purchase gift cards as needed instead of having to save up the money first.
4. No late fees
As long as you make the minimum installment payments every 2 weeks, you won’t incur any late fees. This makes Clearpay a bit more forgiving than a credit card if your payment is a few days past the due date.
5. Build credit history
For customers new to credit, Clearpay installment purchases can help demonstrate responsible use of credit and build your credit history when reported to the credit bureaus.
Tips for Using Clearpay Gift Cards
Here are some tips to follow when purchasing gift cards with Clearpay:
Set reminders for installment due dates
To avoid missed payments, set reminders on your phone’s calendar for each Clearpay installment due date when you make the purchase. Trying to remember the 2-week intervals yourself can be tricky.
Use autopay if available
Some banks offer the option to set Clearpay installment payments on autopay so the amount is automatically deducted every 2 weeks. This ensures you never miss a payment.
Link to a debit card
Consider linking Clearpay to a debit card instead of a credit card. This can help avoid overspending since the installments will only be approved if you have sufficient funds available in your account.
Review merchant’s gift card policy
Before using Clearpay, read the fine print of the retailer’s policy on gift cards purchased with installment plans. Some merchants may apply restrictions like requiring the full balance be paid before the gift card can be used.
Pick digital gift cards for faster delivery
If you need the gift card immediately, choose a digital option you can access online. Physical gift cards have to ship to your address before use. Digital gift cards are delivered to your inbox and can be used faster.
Risks of Using Clearpay for Gift Cards
Although using Clearpay for gift card purchases has many benefits, there are some risks to consider as well:
Potential for overspending
The installment payments may make it easy to overspend on gift cards you can’t actually afford. Make sure to only use Clearpay for amounts within your budget.
Late payments impact credit score
If you miss an installment payment, it can negatively impact your credit score and approval for future Clearpay purchases. Stay on top of the payment due dates.
Delayed gift card use
As mentioned, some retailers may not allow gift card use until it’s fully paid off. So the recipient could be forced to wait up to 6 weeks until the last payment.
Possible clearance issues for big purchases
High-value gift cards over several hundred dollars may take extra time for Clearpay to approve which can delay delivery. Keep purchases under $500 if possible.
Limitations for digital goods
In most cases, Clearpay can only be used for gifting physical and digital gift cards. Other digital gifts like movie tickets or software subscriptions are typically not eligible.
Frequently Asked Questions
Does using Clearpay for gift cards impact my credit?
Clearpay installment purchases can help build your credit history when the payments are reported to credit bureaus. However, missing payments may negatively impact your score. As long as you make all installments on time, it can benefit your credit.
What happens if I miss a Clearpay payment?
If you miss a scheduled installment payment, you may be charged a late fee around $8 depending on the amount owed. Clearpay will send a reminder about the missed payment and retry collecting the amount in a few days. After 10 days late, the remaining balance becomes due.
Can I use Clearpay at any store that sells gift cards?
No, Clearpay can only be used at retailers that partner with them directly. Stores are not required to offer Clearpay just because they sell gift cards. You’ll need to check if each merchant accepts Clearpay online before purchasing gift cards.
Is a credit check required to use Clearpay?
Yes, Clearpay runs a soft credit check when reviewing your application. This allows them to make a responsible lending decision and verify your identity. However, it will not negatively impact your credit score.
What types of gift cards can I buy with Clearpay?
You can use Clearpay for physical and digital gift cards from approved retailers. This includes major stores, restaurants, streaming services, airlines, and more. Just ensure the merchant accepts Clearpay before purchasing.
Conclusion
Using Clearpay to buy gift cards makes it more affordable by spreading out the cost over time. This service offers several benefits like easy budgeting, flexibility with payments, access to gift cards faster, and potential credit building. However, make sure to use Clearpay responsibly by tracking payment due dates and sticking to gift card amounts you can truly afford.
Check the Clearpay website and retailer policies carefully before purchasing gift cards on installment payments. When used properly, Clearpay can be a useful way to buy gift cards for any occasion while still maintaining your financial health.