Layaway has come a long way. Stores began offering layaway during the Great Depression. Back then, people saw it as a way to help struggling families afford Christmas gifts for their children. Now, 90+ years later, the program is still as useful.
Target is among the most popular stores in America. But what’s the story with their payment plans? Does Target have layaway? How do you use it? What are the benefits and drawbacks?
This article aims to answer all of those questions and more. So, read on for a comprehensive guide to the store’s payment plans.
Does Target Have Layaway?
Target does not offer layaway. However, the store has several payment options for customers. These include credit cards, debit cards, Target gift cards, store credit, PayPal, Apple Pay, etc.
You may sign up for monthly payment plans using third-party firms such as Affirm, Klarna, and QuadPay. Target also provides 30-45-day rain checks on discounted products that aren’t available at your local Target store.
What Is Layaway?
Layaway is a way to pay for items over time. You put a down payment on the item and then make payments until you finalize them.
The advantage of layaway is that you don’t have to pay interest like you would with a credit card.
It’s also a great option for those who want to buy something but don’t have the money upfront.
The store holds the item for you until you have made the full payment. Only then does the store release the item into your possession.
It was once a popular way to buy furniture, appliances, and even cars. However, it has since become less common. Stores offer layaway plans during the holiday season, but some stores offer them year-round.
The popularity of layaway surged during the Great Depression when many people could not afford to purchase items outright. Today, the use of layaway has declined as more and more people switch to credit cards.
How Does Layaway Work at Stores?
Customers generally make payments over 8-12 weeks. In addition, there is a small service fee associated with using this payment method.
Typically, customers put down a small deposit (usually around 10%, although this varies by store).
They’ll then pay off the rest of the cost over several weeks or months.
Things To Keep In Mind Before Using A Layaway Program
When you’re low on cash but need that new piece of furniture or that big-screen TV, you may be worried.
A layaway program may seem like the perfect solution. You can make small payments over time and eventually own the item outright.
However, there are a few things to consider before using a layaway program.
Down Payment
The first is the down payment. This is typically between 10% and 25% of the total purchase price. So, again, be sure to have this money set aside.
Duration Of The Layaway
If you do online layaway, it will take eight weeks. However, if you make a $300 or more purchase in the store, it will take twelve weeks. Every two weeks, you must make a layaway payment.
Service Fees
Many retailers charge a service fee for using this payment option. This fee can be a percentage of the total purchase price or a flat rate, whichever is higher. So, it’s important to include it in the overall budget. The fee can be as much as $5 or $10 per item.
Cancellation Fee
Whenever you sign up for a layaway program, you are essentially entering into a contract with the store. Most stores will have a specific policy on their cancellation fee.
This fee is usually a percentage of the total purchase price. It’s there to discourage people from canceling their orders.
It’s important to read this policy carefully before signing up for a layaway plan. If you have to cancel your order, make sure you understand how much the store will charge you.
Restocking Fee
Many people are unaware of restocking fees on items bought through a layaway program. These fees are charged by the store when you break the contract. For instance, if you don’t make your payment in time.
You should be aware of these fees before starting a layaway program.
Benefits Of Layaway
When it comes to holiday shopping, many people are looking for ways to save money. If you’re not careful, you might find yourself in a lot of debt after the new year. But there is a solution – layaway!
Here are some of the benefits of layaway:
- You can buy expensive items that you wouldn’t normally be able to afford.
- You can avoid interest charges.
- You can get the item you want before it goes out of stock.
- There’s no credit check.
- Layaway allows people to pay for items over time. It can be a great way to spread out the cost of holiday gifts.
Downsides Of Layaway
While layaway can be helpful for budget-minded consumers, there are a few potential downsides to consider before using it.
1. The first downside is that not all stores offer layaway.
This can be a problem if the store you prefer doesn’t offer it. Or if you’re looking for a specific item only available at a store that doesn’t offer layaway. Target, for example, doesn’t offer layaways. Meanwhile, other stores like Walmart do.
2. Service Fees
Another downside is that there may be fees associated with layaway. For example, some stores may charge a service fee for setting up the layaway or canceling it. There may also be a fee if you fail to pay in time.
3. You have to adhere to the store’s payment schedule and not yours.
Missing a payment allows the store to cancel your layaway and sell the product to someone else. You’ll also lose part of your money. This can be a huge downside if something comes up and you can’t make a payment.
For instance, if you have to go out of town for a family emergency. You might not be able to make your payment that week.
Which Stores Have Layaway?
- Burlington and Baby Depot at Burlington.
- Kmart and Sears.
- Hallmark.
- Buckle
- Army & Air Force Exchange
- Big Lots
- Marshalls
- Walmart
Layaway Vs. Credit Card
When it comes to buying big-ticket items, there are a lot of factors to consider: How can you afford them? What payment options are available? You have a few choices of how to pay for it.
You can use a credit card, put it on layaway, or take out a loan. Each option has pros and cons. The decision ultimately rests with you.
Credit cards are the most popular way to pay for things. They are easy to use, and you can buy whatever you want without saving up for them.
Credit cards offer;
- Convenience: A credit card is very convenient to use. You can use it to make purchases online, in stores, and even over the phone.
- Rewards: Most credit cards offer rewards programs that give you points or Cashback for every purchase.
- Protection: Credit cards offer protection against fraudulent charges, and they also come with built-in purchase protection.
- The downside is that you can easily get into debt if you don’t pay off your balance every month. It will also affect your credit score.
Layaway is a payment plan where you make small payments over time until you fully pay for the item.
With layaway, you don’t own the item until you’ve made all the payments. This can be a good option if you want to buy an expensive item but don’t have the cash upfront.
Both options allow you to purchase items or services and spread the cost over time. However, there are also some key differences between the two payment methods.
Item Possession:
You’ll take the item with you with credit cards. That is not the case with layaway; you’ll have to complete payment to have the item.
Interest Charges;
With credit cards, it’s essentially a loan with interest that you’ll have to pay. Layaways don’t have interests.
Impact on credit score;
Failure to pay your credit card loans will negatively impact your credit score. That isn’t the case with layaways.
Down payment;
With layaway, you must put down a deposit. You’ll then make regular payments until you complete the payment. On the other hand, credit cards do not require a deposit and offer more flexible payment terms.
Rewards;
Additionally, using a credit card often comes with rewards points or cashback benefits. That isn’t the case with layaways.
Credit;
With a credit card history, you can build your credit scores. With layaways, you won’t build a credit history.
Conclusion
This article looked at store layaway and how it works. While Target doesn’t offer layaway to their customers, several other stores do. These include Walmart, Kmart and Sears, Hallmark, and Buckle.
Ensure you know the store’s policies and procedures if you consider using layaway to purchase items. We hope this read has been insightful.
