When you have found the perfect present for someone, or even the perfect new item for your home, sometimes it takes more than the thought to count towards purchasing it. If you don’t have enough in your bank account to cover the purchase, and don’t want to max out your credit card, you may need a third option. Whether it is a buy now, pay later method or you opt for layaway, it is important to know how layaway works, and if layaway can work for you.
By Caitlyn Moorhead
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Though layaway programs can vary from store to store, the basic tenets of layaway hold true no matter the location.
What You Need To Know About Stores With Layaway
Some layaway programs restrict items by individual departments such as jewelry, electronics, furniture or any other area where the purchase would be over a specific price point. Be sure to research the details of what items are allowed to be put on layaway, and what the down payment and fees could be. The typical steps for layaway are as follows:
Essentially, layaway acts as a reservation for the purchase of a specific item. It is an agreement between the store and the customer which allows the customer to make small payments over time before taking something home, instead of one upfront payment.
How Layaway Works
You select an item that is eligible for layaway.
Put down a deposit or service fee or both.
Depending on the retailer, you could have the choice of how much you would like to put down, or it could be a set percentage of the total cost.
Make payments towards your purchase.
Different stores have different incremental payment schedule options. They can range between weekly and monthly, with most plans requiring you to pay in completion within a full year.
Bring the item home or have it delivered once payments are complete.
Depending on the retailer, you could have the choice of how much you would like to put down, or it could be a set percentage of the total cost.
Different stores have different incremental payment schedule options. They can range between weekly and monthly, with most plans requiring you to pay in completion within a full year.
10 Stores With Layaway or Buy Now, Buy Later Plans
Stores that offer layaway can change annually. For example, Walmart stores have offered layaway programs in the past but will not be continuing to do so in 2022. Instead of layaway, they now partner with Affirm for a buy now, pay later program. While not a traditional layaway set-up, this does allow you to finance your purchase through Affirm and make small payments over time as opposed to one large payment on the day of purchase.
The number of stores offering layaway in the classic sense does seem to be dwindling, but there are still several stores offering this option. Here are 10 stores with either layaway or buy now, pay later options in 2022:
- Down Payment: 20%
- Payment Schedule: 5 installments over 8 weeks
- Service Fee: None
- Cancellation Fee: None
2. Best Buy
Best Buy stores do not have a layaway program perse but do offer a lease-to-own system instead. This is a form of progressive leasing, which allows the buyer an alternative to using a regular credit card, by allowing them to use a Best Buy credit card without paying interest within a specific period of time.
- Down Payment: None, but you’ll need to sign up for a Best Buy Credit Card
- Payment Schedule: Over 9 months
- Service Fee: None
- Cancellation Fee: None
3. Big Lots
Big Lots stores do not specifically have a layaway program but do offer an alternative referred to as a “price hold” program. This is applicable to any Big Lots store that carries furniture. This works for when the item is out of stock, or you need to make payments on the item before taking it home.
- Down Payment: 10%
- Payment Schedule: Within 90 days
- Service Fee: None
- Cancellation Fee: $5
4. Burlington
Burlington’s layaway program is offered year-round and even comes with a $5 card towards the Burlington Rewards Program. For layaway, you must put down at least a $10 or 20% deposit down on the first day. During the busy time between Nov. 19 and Dec. 11, 2022 layaway items will only be held for 30 days. Outside of that window layaway items can be held up to 60 days. There is a $5 service charge and a $10 cancellation fee.
- Down Payment: $10 or 20% (whichever is greater)
- Payment Schedule: 30 to 60 days
- Service Fee: $5
- Cancellation Fee: $10
5. Guitar Center
Guitar Center’s layaway program has a quick turnaround time, but still allows you to pay in installments instead of all at once upfront. Guitar Center offers a 30-day layaway program that has no fees associated with it but does require a deposit of 25%.
- Down Payment: 25%
- Payment Schedule: Within 30 days
- Service Fee: None
- Cancellation Fee: None
6. Hallmark
Participating Hallmark Gold Crown stores offer their layaway program from July to December. A 20% deposit is required and items are held up to 90 days. Payment plans may vary from store to store.
- Down Payment: 20%
- Payment Schedule: Within 90 days
- Service Fee: None
- Cancellation Fee: None
7. Kmart
Kmart’s layaway program is multi-faceted. There is an 8-week program for online and in-store purchases, and there is a 12-week program for in-store purchases of $300 or more. Each program requires payments every two weeks and both come with service and cancellation fees.
- Down Payment: $10
- Payment Schedule: 8 weeks or 12 weeks
- Service Fee:
- 8-week program: $5
- 12-week program: $10
- Cancellation Fee:
- 8-week program: $10
- 12-week program: $20
8. Sears
The layaway program at Sears still exists even with a majority of its brick-and-mortar locations closing their doors. However, you can take advantage of their layaway program when you shop with them online. Sears offers the same layaway program as their subsidiary Kmart.
8-week program: $5
12-week program: $10
8-week program: $10
12-week program: $20
9. Target
Target does not have a layaway program but does offer a buy now, pay later option through Affirm, Quadpay or Klarna. Though it is not layaway in the classic sense it is a way to make consistent monthly payments on something without having to pay all at once. Though there are no service or cancelation fees, there will be a varying APR percentage depending on the purchase amount.
- Down Payment: None but must finance through Affirm, Quadpay or Klarna
- Payment Schedule: Monthly payments
- Service Fee: None
- Cancellation Fee: None
10. Walmart
Walmart stores stopped their traditional layaway program in 2020. It now operates with a buy now, pay later system. This system is partnered with Affirm which allows you to finance your purchases into a multiple-payment plan. Though there are no service or cancelation fees, there will be a varying APR percentage depending on the purchase amount.
- Down Payment: None but must finance through Affirm
- Payment Schedule: Monthly payments
- Service Fee: None
- Cancellation Fee: None
Comparison of Stores With Layaway or Buy Now, Pay Later Programs
Takeaway
Be sure to always research what items are eligible for layaway, and what payment plans are available. Layaway or another buy now, pay later system can help you secure purchases at a certain price, and keep you from having to pay all at once, or from overusing your credit card. As with any big expenditure, it is not always necessary to figuratively shop until you drop, but perhaps exercise a fair amount of caution. Make sure any item you buy fits within your budget not only today but in the months to come.
Frequently Asked Questions
Walmart no longer offers layaway but does offer a buy now, pay later option through Affirm.
No. Kohl’s does not offer layaway in 2022.
No. Target does not offer layaway in 2022, but does offer a buy now, pay later option through Affirm, Quadpay or Klarna.
