What is Splitit?
Splitit are a company that provide interest free payment plans for customers who would like to buy now but don’t have the funds to do so.
How does it work?
Splitit notify your bank and ask the bank to hold the full cost of the order on your credit card, but they only take a monthly payment amount. This means you won’t have access to that credit amount while you’re paying it off, which ensures you don’t spend the money you’ve set aside to pay for your mattress. Each month they take the monthly payment, then re-authorise the remainder with the bank. This helps you budget, interest free.
- A queen size mattress is $1,199. You select to pay this off over 10 months at $119.90 a month, interest free.
- Splitit approves your purchase on your credit card, asking your bank to hold $1,199 on your card, so there’s a guarantee that you’ll keep to the agreed payment plan.
- Splitit take the first monthly payment of $119.90, and ask the bank to hold the remaining balance of $1079.10
- The next month, Splitit take the monthly payment of $119.90, and ask the bank to hold the remaining $959.20
- The following month, they take the monthly payment again, $119.90, and ask the bank to hold $839.30
- And so on each month until the final payment is made.
- Finances are managed, helping you budget.
- Instant confirmation, allowing you to receive your mattress before you’ve paid for it.
- No interest on a credit card purchase, whaaaat?!
- Must have a credit card.
- Must have the total amount available within your credit card limit.