Splitit is a unique player in the buy-now-pay-later (BNPL) arena. What sets it apart is that there is no credit check, no interest, and no fees to use it; it works off the available credit you have on your existing credit cards. The service doesn’t charge any interest, although you may have to make interest payments on the credit card you use for Splitit if you don’t pay off your balance every month.
Installment loans and other BNPL options have exploded in popularity. Research from Kaleido Intelligence estimates that by 2025, consumer spending using BNPL services will reach $680 billion globally, a 92% increase over 2019 totals.
Learn more about how Splitit can make paying for large purchases easier, and which retailers are offering it.
How Does Splitit Work?
Unlike some of the other BNPL services or point-of-sale installment loans, Splitit has no application process and no credit check. Splitit creates automatic installment payments and charges your credit card over a set amount of months. So instead of paying $750 for a TV on the day of purchase, you might pay $125 per month for six months.
When you complete a purchase, Splitit makes sure you have the available credit for the entire purchase, then it charges you for the first installment. Splitit may place a pre-authorization hold equal to the amount of your remaining balance, which may appear as a pending transaction on your statement. With each additional payment you make, the authorization amount will decrease, until you pay off the balance.
Pay attention to your available credit limit. For example, say you have a $1,000 credit limit and you make an $800 Splitit purchase with an initial $200 payment. Splitit will hold $600 of your credit limit until your next payment.
Is There a Minimum Purchase Size When Using Splitit?
E-commerce businesses that partner with Splitit choose their minimum charge amounts as well as the number of monthly installments.
Is There a Maximum Purchase Size When Using Splitit?
Merchants decide the maximum purchase allowed using Splitit.
Do Products Bought With Splitit Ship After First Payment?
Yes. As soon as a product is shipped out, Splitit will charge you the first installment on your credit card.
Can I Use Splitit To Pay Bills?
No. You can only use Splitit for purchases with its partner merchants.
Is There a Credit Limit?
You can make purchases up to the available credit on your credit card or the limits individual merchants set for Splitit transactions.
How Can I Increase My Credit Limit?
While you don’t have a credit limit for Splitit, you do have a credit limit on your individual credit cards. You can request a credit limit increase from your issuer or wait for an automatic increase your issuer may offer.
Does Splitit Affect Your Credit Score?
Using Splitit does not affect your credit score.
Does Splitit Check Credit?
Splitit does not perform a credit check. You can use Splitit as long as you have available credit to cover the full cost of the purchase on the Visa or Mastercard you pay with.
Does Splitit Report Your Activity to Credit Bureaus?
Splitit does not report to the credit bureaus; however, the credit card on which the installment charges appear will likely report your payment activity.
What Credit Score Do You Need to Use Splitit?
As long as you have an active Visa or Mastercard card, you're eligible to use Splitit, regardless of credit score.
Does Splitit Charge Interest?
Splitit does not charge interest. Of course, if you end up carrying a balance on your credit card, your card issuer will charge the regular purchase APR.
Does Splitit Charge Fees?
Splitit does not charge the customer any fees to use the service.
You can pay off Splitit purchases early at no extra charge. You’ll have to log in to the Splitit shopper portal or contact customer care to complete your payments.
Is Splitit Safe?
Splitit’s platform is PCI–DSS level 1 compliant, which means it follows industry-standard security protocols to safeguard your information.
As far as your finances go, Splitit offers you more time to pay down a large purchase without having to pay interest. Still, you don’t want to use Splitit to buy more than you can afford to pay back. If you do, your credit card will charge interest on the Splitit purchases you made.
Also, be aware that an authorization hold will be put on your credit line for the full amount, and will reduce incrementally with every payment you make. Depending on how much available credit you have, you could end up tying up a good portion of your limit for an extended amount of time.
Who Accepts Splitit?
Merchants that offer Splitit’s BNPL service tend to be high-end retailers, luxury brands, and boutiques in the furniture, jewelry, electronics, outdoors, music, and other niche categories. Within the global store directory, there are more than 200 online retailers in North America, including:
- James Allen
- Best Brilliance
- Ace Marks
How to Use Splitit Online
Although some BNPL providers have an app or require registration, you access the Splitit payment option right on the merchant’s site during checkout.
The process may vary slightly for each shopper, but, in general, you’ll choose to pay with Splitit, then select the number of installments you’d like to have. Ultimately, it’s the merchants who decide how many months they want to offer. For example, Canyon, a high-end bicycle company, lets you choose two to six months of payment, while DreamCloud, a mattress company, offers up to 12 months.
Splitit gives merchants the option to offer between two and 36 installments.
How to Use Splitit in Stores
You cannot use Splitit in stores. All purchases have to be made online.
How Do Returns Work When Using Splitit?
If you want to return or get a refund on an item, you have to work directly with the retailer. If they cancel the order or accept a return, they will notify Splitit, which then will reimburse you for any amount you already paid and cancel your remaining payments. Splitit will let you know via email when to expect the credit to your account.
How Do I Pay Splitit?
You’re not actually paying Splitit as you would with other types of installment options—you just pay your credit issuer the same as you always do. Your card will be charged the first installment on the day your purchase is made, then each month on the same day for the number of installments you chose. You cannot change your payment date.
Splitit can only be used when you choose to pay with a Visa or Mastercard. Although it used to accept debit cards, that no longer is the case.
What Happens if I Don’t Pay Splitit?
Since you don’t actually pay Splitit, there are no late fees and it Splitit won’t report your account to collections. However, making late payments on your credit card typically results in a late fee and negatively impacts your credit.