Can You Pay Off Your BNPL Loan With A Personal Loan?

Can You Pay Off Your BNPL Loan With A Personal Loan?

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated July 27, 2022

Many high-ticket products such as furniture items and electronics can be purchased using in-store financing. But with Buy Now, Pay Later (BNPL) options, you can essentially finance these big-ticket items as well as smaller items in four to six installments without having to pay any interest.

Unfortunately, as convenient as a BNPL option may be, it’s still another bill to add to the list. These payments can also become hard to manage when you use the short-term interest-free option to finance a big cost. If you’re having trouble paying off your BNPL, you may be wondering if you can use a personal loan with a longer term to help you cover your BNPL debt and make your payments more affordable. 

Let’s take a closer look at how you might be able to use the funds from a personal loan to pay off your BNPL loan.  

Can You Pay Off Your BNPL Loan With A Personal Loan? 

You may be able to use a personal loan to pay off your BNPL loan, but it depends on the payment method accepted by the BNPL company. Each provider has its own specific regulations.

For instance, PayBright, which allows consumers to break down their payments into regular installments, only accepts credit cards as a method of payment. In this case, you could technically use the funds from a personal loan to pay off your BNPL. To do so, you would use the personal loan funds to pay off your credit card debt, which would indirectly pay your BNPL from PayBright. 

If the BNPL provider accepts direct debits, then you may use your personal loan funds to pay off your BNPL by having the money deposited into the same account that your BNPL loan payments are being debited from.

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Ways To Pay Off Your BNPL Loan With A Personal Loan

When you take out a personal loan, you can essentially use the borrowed funds in any way you please, including to pay off other bills, such as your BNPL loan. Here are a couple of ways to use your personal loan funds to pay off your BNPL loan depending on the accepted payment method:

When Using A Credit Card    

As mentioned earlier, you can use the money from your personal loan to pay off your credit card balance. If you use your credit card to make your regular BNPL payments each billing period, you can indirectly pay off your BNPL by using the personal loan funds to cover the outstanding balance on your credit card.   

When Using A Bank Account

If your BNPL payments are automatically debited from your bank account, you can have the funds from your personal loan deposited into the same account, which would effectively cover the BNPL payments being deducted. You can either pay off each BNPL installment payment as they are debited, or pay the entire balance in full (if the BNPL provider allows it). 

Which BNPL Providers Can You Use A Personal Loan With?

As noted earlier, your ability to use a personal loan to pay off your BNPL loan depends on the payment methods accepted by the specific company. Let’s go over a few BNPL providers to see how each accepts payment, as well as whether or not there will be a prepayment penalty for paying off your loan early. 

PayBright 

PayBright allows you to break down the cost of a big purchase into 4 installments, known as the “Pay in 4” payment plan. The first payment will be authorized on the day of the purchase, and the remaining payments will start on a bi-weekly basis following the first payment. 

Ultimately, the methods of payment available to pay off your PayBright BNPL loan are determined by the retailer. PayBright’s accepted methods of payment are as follows:

If you have the money to pay off the balance before the last payment is due, you’re free to repay it in full without having to worry about being charged any early prepayment penalty fees

How To Pay Off Your PayBright Loan Using A Personal Loan 

Simply log into your PayBright account and choose the plan you want to pay off. You can pay it off in part or in whole, depending on your situation. The money you obtain from your personal loan can be applied to your PayBright BNPL loan to pay it off early, with no penalties for early repayment.

Sezzle

Sezzle is another convenient BNPL payment system that allows you to break down a large payment into smaller payments. More specifically, your purchase will be paid out over 4 installment payments within a 6-week period, at 0% interest. 

The first installment must be paid via credit card, while payments 2, 3, and 4 can be paid with your credit card or a withdrawal from your bank account. 

How To Pay Off Your Sezzle Loan Using A Personal Loan?

Wight Sezzle, you also have the option to pay your entire debt off early without incurring any late charges. To do so, simply login to your Sezzle account, navigate to the specific order, and click “Pay Now.” You can then choose the payment method you’d like to use. 

While you can only use a credit card, bank account, or prepaid card to pay off your purchase in full, you can use the funds from a personal loan to pay off your credit card or prepaid card bill. Or you can use them to replace the debited funds from your bank account to make the Sezzle payment. 

AfterPay

Like PayBright and Sezzle, AfterPay is a BNPL platform that allows you to shop now and pay for your items later over a series of installment payments. More specifically, you’ll make the first payment at the time of checkout, then make the remaining 3 payments over the course of 6 weeks. No interest or fees are applied if your payments are made on time. 

AfterPay accepts debit and credit cards as forms of payment. You can choose to have your payments automatically credited to your card, or you can manually make the payments yourself at each billing period. 

How To Pay Off Your AfterPay Loan Using A Personal Loan

You have the option to pay off your installments early after the order is placed, with no prepayment fees applied. You can do this by visiting your Sezzle account and selecting the “Pay Now” button to pay off your balance in full with your preferred payment method. 

As mentioned before, you can take out a personal loan and apply the funds towards your BNPL debt by either paying off your credit card from which payments are credited or by depositing the personal loan funds in your bank account from which payments are debited.   

Pros And Cons Of Using A Personal Loan To Pay Off A BNPL Loan

There are a handful of perks to taking out a personal loan and using the funds to pay off your BNPL loan early, but there are also a couple of drawbacks that should also be considered.

Pros Of Using A Personal Loan To Pay Off A BNPL Loan

  • More payment flexibility. Many personal lenders offer more flexibility when it comes to making payments. For instance, you can choose between long and short terms and different payment frequencies to suit your needs.
  • Consolidate your debt. Not only can you pay off your BNPL loan with the funds from a personal loan, but you can pay off any other debt you may have. By doing so, you can effectively consolidate all your debt into one bill, rather than juggling several bill payments from different loans and credit products. This makes things easier to manage and can even save you money if the interest rate on your personal loan is lower than the rate on your other debts. 
  • Avoid missed payments. If you’re concerned that you may miss a BNPL payment, a small personal loan can help you cover it. This can help you avoid the interest and fees that may come with missed payments.

Cons Of Using A Personal Loan To Pay Off A BNPL Loan

  • Higher interest. Most short-term BNPL loans come with 0% interest. Personal loans, on the other hand, usually come with interest, some of which may be very high if you have bad credit. As such, using a personal loan for the specific purpose of paying down your BNPL balance will be more expensive.  

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BNPL FAQs

What is a BNPL?

BNPL is a Buy Now, Pay Later option that allows you to pay for a large purchase in smaller payments over a few weeks rather than pay for the product or service in one lump sum at the time of purchase. This gives you more time to come up with the funds needed to cover the cost of the purchase in its entirety. 

Do BNPL loans charge interest?

No, short-term BNPL loans — such as the “Pay in 4” plans — do not come with interest. However, longer installment plans do.

Can I prepay my BNPL? 

That depends on the BNPL company. But in general, most allow it with no penalties, including PayBright, Sezzle, and AfterPay.

Final Thoughts 

Personal loans are very flexible when it comes to how you use the money you borrow. And one way you might choose to use these funds is by paying off your BNPL loan early before it’s due in full. That way, you can scratch one more bill off your list, and potentially pay off other debt you might currently have. 


Rating of 5/5 based on 1 vote.

Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same. She's used a variety of financial tools over the years and is currently growing her money with Wealthsimple, while stashing some capital in a liquid high-interest savings account so that she always has a financial cushion to fall back on. She's also been avidly using her Aeroplan TD credit card to collect as many Aeroplan points as possible to put towards her travels!

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