what is perpay

What Is Perpay and How Does It Work?

Do you want to shop for top brands, but your credit score doesn’t qualify you for buy now pay later plans (BNPL)?

Perpay is made just for you!

In this article, we’ll tell you how you can use Perpay for purchases while building your credit score. Read on to find out more.

What Is Perpay?

Founded in 2015, Perpay is a shopping app with over 3 million users and over a thousand brands.

The platform’s main service is providing consumers the option to pay later for top-brand products while helping them build their credit. It’s specifically targeted towards consumers who are struggling with zero and poor credit.

With Perpay, consumers can have a spending limit between $500 to $2,000. After purchasing, payments are later deducted through their paycheck.

How Does Perpay Work?

Want to pay later with Perpay?

Here’s how to get started:

  • Make an account with Perpay and complete your profile.
  • After creating an account, Perpay gives you an estimated spending limit within 60 seconds. Your personalized spending limit is determined based on factors such as employment details, current income, updated pay stub, net pay, etc.
  • You can now shop for products on the Perpay marketplace.
  • Add the products you want to buy now and pay later for to your cart.
  • You can also click on the “Start Payments” tab on the Perpay Dashboard to set up payments.

You can now sit back, relax, and wait for your order to arrive. Your purchased products are shipped within 3 to 5 business days after you complete your first scheduled payment. This is typically when your next paycheck arrives.

Note: If you can’t find your company listed in the employer or payroll provider menu, you’ll have to set up payments manually. To do so, close the menu and select the “Set Up Direct Deposit on Your Own” tab.

Each time you make a scheduled payment, your standing with Perpay improves and you become eligible for:

  • A higher spending limit
  • A lower purchase amount on orders

How Is Perpay Different From Other Pay Later Apps?

Let’s take a closer look at some of Perpay’s most popular features and how they compare with other pay later apps.

Terms of Eligibility

Where most BNPL apps run credit checks, Perpay does not. It instead requires users to maintain:

  • No active bankruptcies
  • Active full-time employment
  • Active mobile phone number
  • Good standing on financial obligations
  • Ability to pay via direct deposit
  • Ability to demonstrate 3 months’ employment history with current employer

No Fees

Most pay later apps charge users in some way when they miss a payment. In contrast, Perpay doesn’t charge customers interest fees or other penalties.

Automatic Payments

When you use Perpay, you no longer have to worry about missing payments every month since payments are automatically deducted from your paycheck.

Perpay allows users to choose a monthly payment schedule of 4, 8, 16, or 18 payments. Since the payments are made from the user’s paychecks, they’re scheduled every month no matter the number of payments.

Unless you’re making an extra payment, Perpay does not accept payment methods other than direct payroll deposits.

Extra payments can be remitted via credit cards or through a verified bank account on file.

Can you build credit with Perpay?

Yes. Perpay can help build credit. Perpay states on their website that their users can see their credit scores improve after a few months. This statement is based on over 5,000 Perpay members who saw their credit scores rise by 39 points on average from November 2020 to April 2021.

How does Perpay help you build credit? Perpay reports your payment history to all three credit bureaus: Experian, Equifax, and TransUnion. However, this means delinquent payments get reported too.

Referral Program

Perpay users can earn $200 when referrals make their first payment. The $200 credit is automatically applied to your next purchase as long as it’s worth at least $300.

In addition, Perpay also sends a $100 welcome credit to people using your personal referral link. This is applied to their next purchase of $250 or more.

There are no limits to these incentives so you can send out as many invitations and earn as much credit as you’d like.

Top-Brand Products

While Perpay might not be as big and popular as other BNPL apps, it has a wide range of products from top brands like:

  • Apple
  • Nintendo
  • PlayStation
  • Michael Kors
  • Samsung
  • Ashley Homestore
  • KitchenAid
  • MCM

Perpay: Pros and Cons

Thinking about joining Perpay? Here’s a quick rundown of its pros and cons:


  • People with low or bad credit scores can get approved
  • No credit checks
  • Spending limit is based on current income
  • Helps build credit
  • Payments are automatically processed each pay day
  • Access to higher spending limits and lower purchase prices over time
  • Option to choose from 4, 8, 16, or 18 payments
  • Access to big brands
  • Unlimited referral program


  • Products are only shipped after the first payment
  • Default payments are reported
  • Scheduled payments can only be remitted through payroll deposits

Before You Go: Is Perpay for You?

If you have a poor credit history or don’t have one, Perpay is a great BNPL service, especially if you want to improve your credit rating.

We also love that Perpay doesn’t require a credit check and payments are automatically deducted from our pay so we don’t have to worry about making payments on time.

Because of the way Perpay is structured and the way payments are remitted, the company has made BNPL accessible for everyone. If you’re short on options and want to try BNPL, their service is certainly worth considering.

1 thought on “What Is Perpay and How Does It Work?”

  1. Why was I ask to have my social security benefits sent to you? I was going to use perpay but not that way. Thanks Clara Allen

Leave a Comment

Your email address will not be published. Required fields are marked *