Buy On Trust vs Perpay

Quick Summary of Perpay and Buy On Trust

Both Perpay and Buy on Trust are online retail stores that extend you an unsecured credit line and actually reports to the three major credit bureaus. Buy On Trust allow you to buy electronics that will be fulfilled by your nearest Best Buy stores. Perpay has their marketplace (with many partners) that allow you to make online purchases on branded products like Apple, Kitchen Aid, Nike etc.

Buy on Trust is technically a lease to own store so you will own the product that you bought once all payments have been made. Perpay is a regular online store that extends you credit to make your purchase. They do not charge any interest so you get 0% APR with Perpay.

In this comparison, we will highlight how Perpay and Buy On Trust are different and which is better.

What is Buy On Trust?

Buy On Trust is a leading electronics lease to own store that is geared towards consumers who want to lease before deciding to own what they have bought. You can lease any products that can be fulfilled by Best Buy stores. Buy on Trust does not perform any hard inquiry and does not rely on credit scores to approve you. Instead, you need to have a at least 3 months of income of at least $1,000 from the same source, an checking account that has been open for at least 90 days.

If you are approved, you will be given a credit limit of up to $5,000. You can then make electronics purchases and after you check out, you have to pay a one-time fee of $50 to continue the checkout process. The payment term stretches over 12 months. After 12 months of payment, you can own the product if you decide to. Alternatively, you can payoff within 90 days and with a $10 fee, close the account. You can also pay off the whole purchase after 90 days and save at least 25% on future payments.

Buy On Trust reports to all three major credit bureaus.

What is Perpay?

Perpay is a financial platform that allows you to shop for products and pay over time through easy automatic payments from your pay check. Unlike other Buy Now Pay Later or lease to own stores, Perpay does not charge any interest rate (ie 0% APR). Consumers can choose to pay over time up to 6 months. You will get a starting credit limit of up to $1,000 and with regular use, get credit limit increase. Perpay requires you to split your payroll direct deposit and payment for your products are taken directly from your paycheck.

Perpay requires you to have income for at least 3 months, no active bankruptcies and in good standing in all financial obligations.

Perpay reports to all three major credit bureaus after 4 payments of at least $200 in total. In order for Perpay to report to all three major credit bureaus, you have to enroll in Perpay+, which cost $3/month as long as you are making payments for your product. If you are making any payments on your products (because you have finished paying), you will not have to pay the $3/month fee.

Buy On Trust and Perpay are similar in the following ways:

Both report to three major credit bureaus

Both Buy on Trust and Perpay report to all three major credit bureaus. In fact, Buy on Trust is one of the few lease to own platforms that actually reports to credit bureaus. Best Buy's own program does not do that.

Perpay will report your payments to all three major credit bureaus once you have completed 4 monthly payments totalling more than $200. You have to activate a feature called Perpay+ (which cost $3/month while you make your payments) to enable Perpay to report to all three credit bureaus.

No Hard Inquiries

Both Buy On Trust and Perpay do not perform any credit checks nor hard inquiries on your credit report. Buy on Trust instead requires you to have 3 months of income of at least $1,000 direct deposit into your bank account. You would also need a checking account for at least 90 days.

Perpay also requires you to have steady income (though no minimums) for at least 3 months that are paid via direct deposit, no active bankruptcies and no current delinquencies.

Restrictions on where you can use both cards and credit lines

You can only make electronics purchases with Buy On Trust that can be fulfilled by Best Buy stores. Perpay has more online shopping partners than Buy on Trust but you are still restricted to making purchases through their Perpay store and partners.

Differences

Buy On Trust and Perpay are different in the following ways:

Can only buy electronics from Best Buy with Buy On Trust

Buy on Trust is a lease to buy platform that allows you to lease a any product from Best Buy and have pick ups at the nearest Best Buy store near you. With Buy on Trust, you can only purchase stuff from Best Buy or rather products that can be fulfilled by Best Buy.

In contrast, Perpay has partnerships with many online stores and you can purchases almost anything with Perpay and not just an an electronics online store. You have a much wide variety of products you can purchase through Perpay.

Buy on Trust is a Lease to Own Whereas Perpay is a 0% Buy Now Pay Later App

Buy on Trust is technically a lease to own company. If you are not happy with what you have gotten from Buy on Trust, you can return it after a certain period depending on the product that you have. Or you can decide to keep it after you have made full payments.

Perpay is not a lease to own company. Every product that you buy is yours to keep.

Different Credit Limits

The maximum credit limit that you can get with Buy on Trust is $5,000 though most of you will get a starting credit limit that is significantly less than that. Perpay will start you off between $500 to $1,000 in credit limit. Perpay does not state what is their maximum credit limit though you can get credit line increases over time.

0% APR with Perpay

Perpay charges 0% APR with their purchases. Buy On Trust is a lease to own program and so they do charge an interest rate although it varies from product to product.

Different Payment Period

Buy On Trust allows you to pay your lease over 12 months. If you are happy with the product, you can keep it after this period. If you decide you want to pay it off earlier, you can pay in full after 90 days and this will save you about 25% from the remaining payments.

Perpay allows you to choose a payment period up to maximum of 6 months.

Ways which Perpay is better

Perpay is better than Buy on Trust in the following ways:

• Wider variety of products - You can purchase a much wider variety of products from Perpay. With Buy On Trust, you can only purchase electronics from Best Buy.


• Not a Lease to Own store - Perpay is not a lease to own store. What you buy is yours.


• Perpays charges 0% APR - Perpay does not charge any interest rate on your purchases. In contrast, Buy On Trust is a lease to own scheme and you do have to pay a higher than retail prices (which reflects the interest charged).


• Perpay is paid from your payroll directly - Because you will pay Perpay directly from your payroll, you prevent yourself from having a late payment. This is a key difference between Perpay and other Buy Now Pay Later or online catalog stores. Maybe people over extend themselves with these apps and payment schemes. But with Perpay, this is prevented from happening.