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Zip Buy Now, Pay Later: 2025 Review
Zip divides your purchase into four or eight equal payments, but it may charge an origination fee.
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Written by
Jackie Veling
, Edited by Kim Lowe
Last updated 11/21/2025
Zip divides your purchase into four or eight equal payments, but it may charge an origination fee.
3.0
NerdWallet Rating
$25 - $2K
N/A
None
Multiple fees
Pay in 4, Pay in 8
Zip is a “buy now, pay later” provider. It offers two payment plans to break up the cost of your purchase, so you pay over a series of installments, instead of all at once.
Zip may charge multiple fees, including an automatic origination fee.
» COMPARE: The best buy now, pay later apps in 2025
What the nerds think
"Zip’s fee structure is what prevents it from being one of the better BNPL options on the market. No other major provider charges an origination fee, and it cancels out what most shoppers are looking for with BNPL: a no-cost way to break up their purchase."
Zip works by dividing the total cost of your purchase into smaller installments when you check out with Zip online, in stores or in the Zip mobile app. There may be two payment plans to choose from – Zip Pay in 4 and Zip Pay in 8.
Payments are automatically billed to the debit or credit card you used to make the original payment. You can also make payments manually or early.
Zip may charge an automatic origination fee that can vary widely based on the details of your purchase. Other fees include a late fee up if you miss a payment and a payment rescheduling fee if you reschedule more than once per calendar month. You can read more about these fees below.
Zip is a safe and reputable provider of BNPL loans. However, NerdWallet doesn’t recommend using a BNPL loan to pay for a non-essential purchase, like recreational shopping. That’s because BNPL is still a form of debt, and it’s easy to get in over your head, especially if you struggle with overspending. Plus, if you fall behind on payments, your credit score could suffer, making it harder to qualify for affordable credit in the future.
» LEARN MORE:The pros and cons of BNPL
NerdWallet rates lenders against a rubric that changes each year based on how BNPL products evolve. Here’s what we prioritized this year:
» LEARN MORE: NerdWallet’s methodology for rating BNPL products
Zip checks your credit with a soft credit pull when you sign up for its service. This won’t hurt your credit score. Though there’s no minimum requirement, Zip considers your credit score as part of your application.
To be eligible for Zip, you need to be at least 18 years old, live in the U.S. and provide a valid date of birth, email, mobile phone number, debit card and mailing address.
Zip says it takes into account numerous factors when making an approval decision, including your credit report and any previous Zip repayment history.
Nerdy Tip
One of the best ways to get approved for a BNPL loan is to show a history of on-time payments with that provider. Consider using BNPL to make a small purchase first, then pay off your loan on time or early. This may help you get approved for a slightly larger purchase in the future.
Because Zip charges an origination fee, its pay-in-four is more expensive than pay-in-four plans offered by providers like Affirm, Afterpay and Klarna. These providers also offer monthly repayment options, though you may be charged interest.
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If you have good or excellent credit (any score in the mid-600s or higher), you may consider applying for a 0% APR credit card. These cards offer introductory periods of up to 21 months and charge no interest during that period. You may also receive a sign-up bonus or access to a rewards program.
Since your payment history is reported to the credit bureaus, it’s a reliable way to build credit. Make sure you pay off the purchase before the introductory period ends or you’ll owe interest on the remaining balance.
If you’re looking to fund a large, essential purchase, you could apply for a personal loan. Most personal loans start at $1,000 or $2,000, and there are options for borrowers with fair or bad credit (any score in the low 600s or below). Personal loans have fixed interest rates and longer repayment terms, both of which can help you budget for the monthly payments.
Personal loan lenders report your payment history to the credit bureaus, and they typically charge late fees.
Many lenders offer pre-qualification, so you can check whether you qualify for a small personal loan without hurting your credit score.
Like all BNPL providers, Zip may cause you to overspend, since you’re not paying the total cost of your purchase at checkout. Zip may also charge fees, including an origination fee, which increases the cost of your purchase.
Zip’s approval decisions are instantaneous, meaning you’ll know immediately whether you’ve been approved or denied.
Zip doesn’t approve everyone, and each loan you apply for is an individual approval decision. This means you may be approved for one purchase but not another.
Zip offers BNPL plans up to $2,000. According to Zip, one way to increase your estimated spending power is to pay off five consecutive orders on-time or early.
Zip doesn’t conduct a hard credit check, so applying for Zip won’t hurt your credit. But if you fall behind on payments, and your account is sent to collections, it could hurt your credit score.
3.0
NerdWallet Rating
