Costco has made a move that's shaking up the shopping experience for thousands of consumers. In times of inflation and tight budgets, Costco has launched measures that may help... or complicate the finances of many.
A new way to pay
The big news: now Costco allows "buy now, pay later" thanks to its partnership with the payment app Affirm. This financing system is already used in other major stores and now arrives at Costco to offer greater flexibility.
The process is simple: if your purchase exceeds $500, you can split the total into monthly installments, with terms up to 36 months. The maximum limit for using this option is $17,500. That is, from an appliance to large furniture or technology, everything is included in the new system.
It's good news for those who need to make a large purchase but can't pay for it all at once.
Does everything have a cost? Yes, the interest
As expected, this financing isn't free. The plans with Affirm have an annual interest rate that can range from 10% to 36%, depending on your profile as a customer.
For example, a purchase of $815 could end up costing:
- $840 if paid in 6 months,
- $875 in 12 months,
- Up to $903 if extended to 18 months.
Although this represents a higher expense in the end, there's something in favor of the customer: there's no penalty if you decide to pay early. That is, if you receive extra income, you can pay off the debt without penalties.
In addition, the process to see if you qualify is quite user-friendly: the credit evaluation is a soft inquiry, so it doesn't affect your score. However, subsequent payments could be reported to credit agencies.
Gas stations with longer hours (but not everywhere)
Another recent change has to do with Costco gas stations. In most of its locations in the United States, operating hours have been extended: now they're open until 10:00 p.m.
This decision aims to make it easier for those who work longer shifts or prefer to avoid peak traffic hours to access fuel. However, not everything has gone as desired in all cities.
In Jacksonville (Florida), for example, Costco tried to open a new gas station in the parking lot of its Gate Parkway store. But the City Council rejected the proposal by 15 votes to 3, preventing the rezoning of the land.