LutherSales Review – Buy Now and Pay Later
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If you do not want your credit score to be affected and are looking for a flexible option to make purchases, LutherSales offers an ideal solution.
8.5/10
Cost
9/10
Features
8/10
Ease of use
9/10
Services
8.5/10
Oh, to really need a new mattress or wish for a bigger TV when strapped for cash. You try to save, but something keeps popping up, and you don't seem one step closer to making that large purchase. That's the beauty of Buy Now Pay Later (BNPL) programs. It is like a bridge between you and the items you need. Buy it now while you need it, and pay it later through installments. It's a bit like saving for the item, but nothing touches your money, and you also get to have the big-ticket purchase now instead of later. Who doesn't love that? This is why LutherSales is such a popular place to shop.
In this article
What is LutherSales?
LutherSales, based in Hauppauge, New York, is an online store that sells items you can buy now and pay for through installments, such as a new mattress, TVs, cellphones, and designer handbags. The company has been around for more than five decades and has been providing quality products affordably and conveniently through payment plans, which means it is fully legit.
Related: Best Buy Now Pay Later Companies
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- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
How does LutherSales work?
LutherSales.com claims to offer responsible purchasing options with low monthly payments. If you are older than 18 and have a U.S. mobile number where you can receive text, a valid email address, income of more than $30,000, and proof of employment, then you are eligible to apply for a LutherSales account. Additionally, you must have been employed at the current position for over a year.
It has a simple and straightforward process that involves a 3-minute application. Head to LutherSales's website, and on the home page, click on “My Account.” If you already have an account, you can sign in and start shopping. You can open a new account within minutes if you are a new user.
On the next page, you will see two options- One for Civilian Government Employees and one for All the other employees. LutherSales will approve your application based on your work history, not your credit score. You can click on the option that applies to you. I clicked "All other employees" and was redirected to a new page. Add your name, phone number, and email address on this page, and click “Start Application” now. You will receive an OTP on the phone number and must verify the same.
Once you verify it, your account will be created and taken to a new page. Here, you will have to provide information about your income and employment status. Remember, your work history counts, not the credit report. They will decide your spending limit based on the information you provide.
The application will then be processed and approved. You will receive a notification from the customer service team in the form of an email and text message letting you know that you can book an appointment with a personal shopper and start shopping. If you do not qualify for the program, consider other payment options and credit financing. You can either pay in full for a product within six months of delivery, save 25% on the cost, pay no interest, or enjoy a 10% discount for the order in full before the delivery.
How much does LutherSales cost?
LutherSales offers an interest-free purchase. Hence, the purchase amount will be divided according to your chosen payment option. However, there are late fees applicable. If you default on the payment, you pay $0 or greater than 5% of the payment or $20 as late fees.
LutherSales features
No down payment
LutherSales does not require you to make any downpayment at the time of purchase. You simply make the repayment as per the payment plan you choose.
No credit check
LutherSales is a buy now, pay later, no-credit-check company. Hence, you can apply for the loan without hurting your credit scores or worrying about your repayment history being reported to the credit bureaus.
Work history
LutherSales will determine your credit limit based on your work history, not your credit score. This can be a disadvantage if you have recently switched jobs. LutherSales requires you to have been at your current place of employment for at least one year and have an annual income of $30,000.
Easy payment methods
LutherSales offers three different payment methods. Choose the payment plan you can afford. The repayment tenure is as high as 36 months, and the due date is at least 25 days after the close of the billing cycle.
Limit based on your work history
LutherSales will set a limit for you based on your work history. This limit will not impact your credit history, and it can be increased going forward. If you make the repayment on time, LutherSales may raise the limit.
Automated payments
Once you set up your account and link it to your savings or checking account, the payments are automated. You will not have to worry about making the payments occasionally; they will be automatically deducted.
Wide product selection
At LutherSales, you get an extensive catalog of products and brands.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Who should use LutherSales?
- Those who make small purchases. LutherSales is ideal for small online purchases if you can make the downpayment and pay off the balance within the scheduled time. You can avoid the fees with regular payment, which can be cheaper than using a credit card.
- Those with a strong work history. LutherSales may also be a good choice if you have a strong work history and do not want a credit check. And if you make the repayment on time, you can also build a strong credit score.
- Those who enjoy online shopping. LutherSales has a wide range of products and brands if you like to shop online for most things.
Who shouldn’t use LutherSales?
- Those who miss payments. LutherSales is not ideal for those who cannot make timely payments. It will lead to high late fees, which can eliminate the benefits of buying now and paying later.
- Those who change jobs often. LutherSales is also not suitable for those who often change jobs. If you have not remained at the same job for at least one year before you apply, you might not be eligible for the best payment options.
Pros and cons
Pros
- Instant approval. Once you complete the application, you will be immediately contacted by the team to set your limit.
- No down payment. You do not need to make any downpayment when you make the purchase. Simply choose from the available payment options and start shopping.
- No hidden fees. With LutherSales, you get what you see. There are no hidden fees or prepayment fees associated with the account.
Cons
- Application approved on work history. Since LutherSales does not run a credit check, the application is approved based on your work history. If you have not been employed for the past year or have recently changed jobs, you might not be eligible. Additionally, you will have to provide proof of employment.
- Automated payments. A benefit for many, but if you do not like the automatic deduction of the amount from your account, LutherSales might not be right for you. Plus, you will have to maintain the balance in your account.
- High late fees. In case of default or non-payment of the dues on time, LutherSales can charge a late fee as high as 25%.
LutherSales vs. competitors
Company | Interest rate | Late fee | Credit check |
LutherSales | None | Up to $20 | No |
Fingerhut | None | Up to $41 | Yes |
Splitit | None | $0 | No |
Fingerhut
Fingerhut is an alternative to LutherSales and has existed since 1948. It is an online retailer that offers Buy Now Pay Later services. Fingerhut allows you to build strong credit by reporting the payments to all three credit bureaus. You enjoy low monthly payments with no application fee and no over-limit fee. If you do not have strong credit, you can start with FreshStart, a one-time purchase program that will take you to a traditional credit account. Fingerhut has a late fee of up to $41. The late fee is significantly higher than LutherSales. You can repay at a monthly rate as low as $9.99, and it will have a hard inquiry on your credit report.
Splitit
Another alternative to LutherSales, Splitit does not have an application process or a credit check. They will create automatic installments and charge the credit card over the course of months. However, you will have to make the first installment at the time of purchase, and the remaining will be broken over 24 months. It does not charge any interest, and there are no fees to use its service. It also does not charge any late fees, but the credit card provider may charge the same.
FAQs
What is LutherSales refund policy?
LutherSale’s refund policy is based on the product category. If you have bought bedding or furniture, it can only be returned for a refund if it is refused on delivery. In case of disappointment in selection at the delivery time, you will receive a full refund. Major Luther appliances and TVs can be returned for a refund if refused on delivery, and most appliances are covered under the 1-year warranty. Computers and other items that are shipped by parcel service can be returned in 3 days if the purchase remains in the original packaging.
Do I have to provide a pay stub during the application process?
Your application will only be processed with a legible copy of the pay stub. It will allow LutherSales to verify the employment details.
What are the reviews of LutherSales?
Since LutherSales does not run a credit check, it is ideal for bad credit financing and has existed for many years. The customer reviews are mixed on Trustpilot, with users calling into question the high prices and late deliveries of items.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
The bottom line
Buy Now, Pay Later works for some, but it might not. If you do not want your credit score affected and are looking for a flexible option to make purchases, LutherSales offers an ideal solution. Only your work history is required to approve the application.
Before you proceed with the buy now pay later service, it is advisable to consider your ability to make timely payments. Since the amount will be automatically deducted from your account, you should consider your monthly inflow and outflow when deciding. LutherSales enjoys a strong reputation in the industry and has an ever-expanding portfolio of brands and products, making it the first choice of many.
BNPLs make purchase decisions easier and less stressful for your finances but remember to pay attention to the due dates.
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Editor
Vandita Jadeja is a financial writer and editor at Joywallet. She loves to read and write about money and brings a decade of experience from the financial industry.
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