15 Stores with the Best Layaway Programs (Updated)
Layaway is a purchasing method that allows you to reserve an item by paying a deposit, with the retailer holding the product until you complete a series of payments. Unlike credit cards or ‘Buy Now, Pay Later’ services, you do not receive the item until it is fully paid for. This interest-free option provides a structured path to ownership without debt or credit checks.
How Does Layaway Work?
The layaway process is straightforward and consistent across most retailers that offer it.
Select Your Items: Choose the products you wish to put on layaway, either in-store or online, depending on the retailer’s policy.
Place a Deposit: Pay an initial deposit, which is typically a fixed fee or a percentage of the total purchase price.
Make Scheduled Payments: Adhere to the store’s payment plan, making regular installments over a set period, such as every two weeks or monthly.
Receive Your Purchase: Once the balance is paid in full, you can pick up your items from the store or have them shipped to you.
Costs Associated With Layaway
While layaway is interest-free, it is not always fee-free. Understanding the potential costs is crucial before committing to a plan.
Fee Type | Description |
|---|---|
Service Fee | A charge to cover the administrative cost of holding the item and processing payments. |
Deposit | An upfront payment, often $10 or 10-20% of the total cost, to initiate the layaway agreement. |
Cancellation Fee | A penalty incurred if you cancel your plan or fail to make payments on time. |
Does Layaway Affect Your Credit Score?
No. Layaway plans do not require a credit check and are not reported to credit bureaus. This makes them an excellent option for those looking to avoid impacting their credit score, though it also means timely payments will not help you build credit.
Pros and Cons of Layaway
Weighing the advantages and disadvantages can help you decide if layaway is the right choice for your next purchase.
Advantages of Layaway
No Credit Check Required
Layaway is accessible to almost everyone, regardless of credit history. Stores only require proof of ID and a deposit, making it an inclusive financing option.
Interest-Free Financing
You pay only the item’s price and any applicable fees, avoiding the high-interest rates commonly associated with credit cards.
Guaranteed Availability
During high-demand seasons like holidays, layaway ensures popular items are reserved for you, preventing sell-outs.
Disadvantages of Layaway
Potential Fees
Service and cancellation fees can add to the overall cost, especially on smaller purchases where the fee represents a larger percentage of the total.
Strict Payment Schedules
Missing a payment can result in cancellation of the agreement and loss of the item, along with incurred fees. Some plans require in-person payments, which may be inconvenient.
Stores That Offer Layaway in 2024
While fewer retailers offer traditional layaway than in the past, several major stores and specialty shops still provide this service.
1. Kmart & Sears
Availability: In-store and online for 8-week plans; in-store only for 12-week plans on purchases over $300.
Deposit: $10
Fees: $5 service fee (8-week) or $10 service fee (12-week); cancellation fees apply.
2. Burlington (Burlington Coat Factory)
Availability: In-store only; exclusions apply on items like furniture and rugs.
Deposit: $10 or 20%, whichever is greater.
Fees: $5 service fee; $10 cancellation fee.
3. Jewelry Retailers
Many jewelry stores specialize in layaway, offering flexible terms on high-value items.
Shane Co.: 20% deposit, no fees, and flexible payment plans. Learn More
Jewelry Exchange: 25% deposit and a 6-month payment period. Learn More
Day’s Jewelers: 10% deposit, with a restocking fee for cancellations after 30 days. Learn More
Popular Stores That Offer Alternative Financing
Many major retailers have replaced layaway with modern financing options like ‘Buy Now, Pay Later’ services or store credit cards.
Buy Now, Pay Later (BNPL) Options
Walmart: Offers Affirm financing for purchases between $144 and $2,000.
Macy’s: Provides the option to split payments into four with Klarna or use a Macy’s credit card for longer-term plans.
GameStop: Allows payments over 6 weeks using QuadPay or Klarna.
Store Credit Card Financing
Best Buy: The Best Buy Credit Card offers 12-month special financing on purchases over $299.
The Home Depot: Provides 6-month financing on purchases of $299 or more with its consumer credit card.
Apple: Allows customers to pay for new devices in 24-month installments with the Apple Card.
Is Layaway Right for You?
Layaway remains a valuable tool for budget-conscious shoppers who wish to avoid credit checks and interest. It is particularly useful for securing high-demand items in advance. However, for those seeking immediate gratification or the ability to build credit, BNPL services or store cards may be more suitable.
Before choosing a financing method, always read the terms carefully. Compare all fees, payment schedules, and cancellation policies to make the most informed decision for your financial situation.
Ready to reserve your next purchase? Check the policies at your favorite retailer or explore the stores listed above to find a layaway plan that works for you.