What is Zip Money?
Zip Money is a “buy now, pay later” service that provides customers with a line of credit, so they can make purchases at participating retailers. After signing up, Zip Money assigns you an initial credit limit over $1000 depending on the personal and financial information that you provide during the application process. Depending on your credit history you may not be eligible for an account or you may be given a credit limit that is lower than you were expecting. Your credit limit may be increased after you show you can make your payments on time and your account doesn’t enter arrears. The sign-up process is simple and shouldn’t take longer than 5 minutes.
To be eligible for a Zip Money account, you will need to:
- Be at least 18 years of age
- Be an Australian citizen or resident
- Have a Facebook, PayPal or LinkedIn account in your name
- Have a good credit history
- Have your own valid email address and mobile phone number
Zip Money can be used both in store and online. If you wish to use it online, just select Zip Money as your payment method when checking out. At any store that is a Zip Money merchant, sign in to your Zip account and use it as the payment method during checkout. After you have made your purchase, you can choose how you would like to repay with either weekly, fortnightly or monthly repayments. The minimum monthly repayment starts at $40. For all the purchases you make in a month, you receive an account statement on the first day of the following month. You have until the end of that month to pay off your balance for the account to remain fee free.
Zip Money is an interest-free service, but this doesn’t necessarily mean that it’s free. The establishment fee is $0-$99. Along with the minimum monthly repayment, you will be charged $6 at the end of the month if you still have any money owing. You will also be charged a $5 fee if you miss a scheduled payment, this can happen if you don’t have enough money in your account when a direct debit is meant to be made. You can make additional repayments of any size at any time.
Zip Money uses advanced encryption and two-factor authentication on all purchases to protect your personal information and transactions. The benefits of Zip Money are that it is an extremely simple application process with quick approvals. The interest-free payments and 60 days free are great bonuses for anyone who is thinking about signing up!