Fly Now Pay Later review: An app to book your vacation now and pay later

Pros

• Variety of travel companies availablenStreamlined application processnPay back in as many as 12 monthly installments

Cons

• APR and some other loan terms not clear until you get a loan agreement nDown payment may be requirednRequires a credit check

What you need to know about a Fly Now Pay Later personal loan

Fly Now Pay Later is an app that allows you to book travel — including flights and hotel stays — and pay for it in monthly installments. The service launched in the United Kingdom in 2015, but now also serves the United States and Germany.

In America, loans are issued through New Jersey–based Cross River Bank in a partnership with Pay Later Financial Services.

Varying interest rates offered

Depending on your credit and the amount you borrow, your APR for Fly Now Pay Later could be as high as 29.99%. The company will run a credit check before you finish signing up. You may also need to pay transaction fees.

Another downside: You won’t know your specific APR and other fees until you get to the formal loan agreement.

Variety of travel companies available

Some of the common book-now, pay-later services for flight tickets may be tied to a specific airline. With Fly Now Pay Later, you have a choice among several different airlines (like American Airlines and British Airways).

You can also access a variety of lodging options, including Airbnb, and even travel marketplaces like Expedia and Orbitz.

Simple application process

When you download the Fly Now Pay Later app on your phone, the interface will guide you through the short application process to apply. The company says it takes about three minutes.

Down payment may be required

Depending on the travel and repayment plans you make, you may need to make a down payment or deposit on your bookings at checkout. 

App download recommended, but not strictly required

Fly Now Pay Later encourages use of its mobile app. While you can choose Fly Now Pay Later at checkout at some travel companies, getting all the options advertised on the Fly Now Pay Later website might require you to download the app.

A closer look at Fly Now Pay Later personal loans 

Here are a few other things to consider as you decide whether to use Fly Now Pay Later.

• Your travel fares may be split into anywhere from two to 12 monthly payments.
• To pay at checkout, Fly Now Pay Later will issue you a virtual card that you’ll use to book and pay for your travel expenses. Within the app, you’ll simply choose your bookings from the providers available.
• Purchases made using Fly Now Pay Later at checkout must be between $100 and $3,000. It’s unclear whether these limits apply while using the app.
• You may face late payment fees if payments aren’t made on time.
• Once you’ve booked your trip, your payments will be automatically charged to your debit card on their due date. You can also make early payments through the app.
• You can adjust your payment due date, as long as your next payment isn’t due within the next seven days.
• Unless trips are within 90 days of each other, each new trip you use Fly Now Pay Later to fund will trigger a new hard credit inquiry, which can have a negative effect on your credit scores.

Who is a Fly Now Pay Later loan good for?

Fly Now Pay Later could be a decent option for people with excellent credit who want to pay for their vacation in 12 monthly installments. The best APR possible for qualified customers is 9.99% — a better deal than the national average credit card interest.

But for people with less-than-perfect credit, the APR can be much more costly, going well into double-digits.

How to apply with Fly Now Pay Later

To use Fly Now Pay Later, you can get started by downloading the app. Once you do that, you can evaluate your travel options through the app or on your own.

If you don’t book directly through the app, Fly Now Pay Later will give you payment options to choose from and then issue you a single-use virtual card to book your reservations on your own.

You must be a U.S. citizen or legal permanent resident, have a cell number and a debit card to qualify. You also must be 18 or older, or 19 if living in Nebraska or Alabama.

This process is different from more traditional personal loans. With a standard personal loan, you’d typically try to prequalify for the loan, check your rate and then decide whether to formally apply. The lender then would deposit the approved funds directly into your bank account to use for anything from airline tickets to other expenses.

Not sure if Fly Now Pay Later is right for you? Consider these alternatives.

Fly Now Pay Later is not your only option for booking travel and paying over time. Here are a few other choices.

• Uplift: Uplift also has partnerships with a wide variety of airlines and other travel companies, and no money is due at checkout.
• Affirm: With Affirm, you’ll book directly with the airlines and hotel companies you like and then choose Affirm payment at check-out. The company’s “Travel” page will let you know which providers use the service.
• 0% interest credit cards: Another option for spreading out the cost of a big expense like travel is to take advantage of an introductory 0% interest offer on a credit card. You’ll likely need good credit to get approved, but if you do, a card could be cost effective.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.