1. Interest-Free Installments: Sezzle allows users to split their purchases into four interest-free payments, scheduled over six weeks, making it easier to manage budgets without extra costs.
2. Boosted Spending Power: Shoppers can make immediate purchases without full upfront payments, increasing their buying capacity, especially for larger-ticket items like electronics or furniture.
3. Credit Building: Sezzle offers a credit building program that reports to credit bureaus, helping users with little or no credit history to build their credit scores when they make their payments on time.
1. **Interest and Fees**: Users may incur fees for rescheduled payments or late payments, and making frequent use of Sezzle's rescheduling feature can quickly accrue additional costs, negating the benefit of an initially interest-free purchase.
2. **Impact on Credit Score**: If Sezzle reports to credit bureaus (which it might start doing), missed or late payments may negatively impact a user's credit score, potentially affecting future creditworthiness.
3. **Encourages Overspending**: The app's convenience can lead to impulse purchases, as it allows users to buy items without immediate financial repercussions, potentially fostering poor spending habits and leading to debt accumulation.
