Costco is famous for making you buy in bulk, and sometimes that means a checkout total that stings. So it caught a lot of members by surprise when the warehouse giant, long known for keeping payment options simple, added a buy now pay later choice.
As of July 2026, Costco offers installment financing on larger online purchases through Affirm, plus a separate option for cardholders. Here is how Costco buy now pay later works, what it costs, and how to decide if it is right for your next big haul.
Key Facts at a Glance
| Feature | Costco BNPL via Affirm |
|---|---|
| Provider | Affirm |
| Purchase range | $500 to $17,500 |
| Term lengths | 3 to 36 months |
| APR | 10% to 36% |
| Where it works | Costco.com online orders only |
| Cardholder option | Citi Flex Pay for Costco Anywhere Visa members |
Figures are current as of July 2026. Terms and conditions apply, and APRs vary by creditworthiness.
How Costco Buy Now Pay Later Works
Costco added Affirm as a payment option for eligible online orders. At checkout on Costco.com, qualifying members can choose Affirm to split a large purchase into fixed monthly payments instead of paying the full amount at once.
The program is aimed at big-ticket items. It applies to transactions between $500 and $17,500, with repayment terms ranging from 3 to 36 months.
What it costs
The Affirm option charges interest, with APRs generally between 10% and 36%. The exact rate depends on your credit profile and the plan you select at checkout.
That means a longer term lowers your monthly payment but raises the total interest you pay. A shorter plan costs less overall, so choose the shortest term you can comfortably handle.
Online only, not in store
One important limit: the Affirm option is for online purchases at Costco.com only. You cannot use it at the register inside a warehouse, so plan ahead if you want to finance a big item.
The Citi Flex Pay Option
Costco also offers a second buy now pay later route called Flex Pay, provided through Citibank. This one is limited to Costco Anywhere Visa cardholders.
Flex Pay lets eligible cardholders convert a qualifying purchase on the card into a fixed monthly payment plan. If you already carry the Costco Anywhere Visa, it is worth comparing its Flex Pay terms against an Affirm plan before you decide.
The Honest Pros and Cons
For a genuinely large, planned purchase like appliances or furniture, spreading the cost can make a necessary buy easier to manage. Approval is quick, and you know your monthly payment up front.
The trade-off is interest. With APRs reaching 36%, a long plan on a costly item can add a meaningful amount to the price. And financing a purchase you do not truly need is still an easy way to overspend just because the monthly figure looks small.
Does it build credit?
Costco's Affirm financing is a payment tool, not a credit-building product, so do not count on it to lift your score. If building credit is part of your goal, a dedicated credit-builder tool is a better path. For instance, Perpay reports on-time payments to all three bureaus while you repay through automatic paycheck deductions.
Perpay
Perpay
Access up to $1,000 to shop and pay over time from your paycheck while building credit. Increase your credit score by 32 points on average!
Standout feature
Buy Now, Pay Later with Credit Building
Fees
Free ($5/mo for Perpay+ to build credit)
Pros
Up to $1000 spending limit and reporting to Experian, Equifax and Transunion
Cons
Cost $5/mo for credit building
Smarter Ways to Handle a Big Purchase
If you want to pay over time and build credit while doing it, a few partner options are designed for that.
Sezzle offers a Pay in 4 plan for many purchases, and its Sezzle Up program reports on-time payments to all three major credit bureaus when you opt in. That turns responsible installment use into credit history rather than a plan that simply ends when paid.
Sezzle
Sezzle
Flexible payments made simple. Shop now, pay later with zero interest options, smart budgeting tools, and a seamless checkout experience.
Standout feature
0% interest on Pay-in-4 when paid on time
Fees
Free
Pros
Sezzle Up reports on-time payments to all major US bureaus
Cons
Late fee of up to $16.95 per missed installment
Perpay runs its own marketplace where you shop and repay in fixed installments pulled from your paycheck with no interest. Its Perpay+ membership reports payments to help build credit, and the company says enrolled members see an average increase of about 32 points in their first three months.
Current Build Card is a secured credit card with no hard credit check to start. On-time payments are reported to Equifax, Experian, and TransUnion, and Current reports an average score increase of 81 points in the first six months, which is a steadier path than stacking financing plans.
Current Build Card
Current Build Card
$0 annual fee. No minimum deposit required. No credit check required. 1 point per dollar on eligible categories. Reports to Experian, TransUnion, Equifax.
Fee
$0
APR
0%
Minimum Deposit Amount
$0
Credit Check
No
Cashback
1 point/dollar on eligible categories (with qualifying payroll deposit)
Benefit
No credit check, no deposit minimum
How to Decide
Start with whether the purchase is a true need and something you can repay on a short term. If it clears both bars, an Affirm or Flex Pay plan can be reasonable, especially at the lower end of the APR range.
If you are financing mainly because the lump sum feels uncomfortable, pause. Sometimes waiting a pay cycle or two and paying in full beats months of added interest.
Compare every plan before you commit
Look at the total repayment, not just the monthly amount, and put the Affirm quote next to Flex Pay if you are a cardholder. A short, low-APR plan can cost far less than a long one on the same item.
Next Steps
Confirm the item qualifies, decide the shortest term you can afford, and compare the Affirm offer against paying in full or using Citi Flex Pay if you hold the Costco Anywhere Visa. If building credit is also a goal, weigh a tool like Sezzle Up, Perpay+, or the Current Build Card.
Borrow only what you can repay on schedule. This article is general information, not individualized financial advice.
Frequently Asked Questions
Does Costco offer buy now pay later?
Yes. As of July 2026, Costco offers installment financing on eligible Costco.com orders through Affirm, plus a Flex Pay option through Citibank for Costco Anywhere Visa cardholders. The Affirm option applies to online purchases only, not in-store checkout.
How much can I finance with Costco's Affirm option?
The Affirm option covers online transactions between $500 and $17,500, with repayment terms from 3 to 36 months. APRs generally range from 10% to 36% depending on your creditworthiness and the plan you choose.
Can I use Costco buy now pay later in the warehouse?
No. The Affirm option is available only for online orders at Costco.com and cannot be used at a register inside a warehouse. If you want to finance a large item, plan to buy it online.
Will Costco financing help build my credit?
Costco's Affirm financing is a payment tool rather than a credit-building product, so it generally will not raise your score. If credit building is your goal, options like Sezzle Up, Perpay+, or a secured Current Build Card are designed to report on-time payments to the major bureaus.
