Does Katapult Repossess (2024)

FAQs

What happens if I miss a payment on Katapult? ›

Failure to make on-time payments will impact your ability to get a Katapult lease in the future.

We believe that a credit score doesn't fairly reflect a customer's ability to be financially responsible. That's why at Katapult, we look at many factors beyond a credit score during our real-time approval process.

Through the use of our program, customers have the flexibility to pay off with our 90-day early purchase option, pay off any time during the lease agreement or pay off by fulfilling all of their scheduled lease payments.

If you complete a full return of the items originally purchased, you should request a refund back to your original payment method. The refund to your Katapult lease-purchase will be triggered within 7-10 business days.

A borrower who is past due will usually face some penalties and can be subject to late fees. Failure to repay a loan on time usually has negative implications for a borrower's credit status and may cause loan terms to be permanently adjusted.

Ask the lender to remove it with a goodwill letter

The process is easy: simply write a letter to your creditor explaining why you paid late. Ask them to forgive the late payment and assure them it won't happen again.

After 90 days keep paying monthly or purchase leased items. Purchase your leased items at the end of your lease term.

Do I receive a hard inquiry on my credit report when I apply? Nope! Applying for financing through Affirm or Katapult does NOT hit your credit score. In fact, timely pay-off's do have a positive credit impact, so paying on an Affirm or Katapult loan/lease can even improve your credit!

Can a customer have multiple lease purchase agreements? Answer: Yes. We will offer them additional approval amounts for being a great customer that can be used towards another lease purchase agreement.

In order for your due date to be changed, your lease must be in a current status and not the day of. There is also a limitation to how far a due date can be moved based on your pay frequency. Please keep in mind, your due date can only be changed once throughout the life of the lease.

What is the difference between Affirm and Katapult? ›

Affirm offers a conventional discount tire financing option that allows you to buy your tires now and pay back the loan later. On the other hand, Katapult offers a lease-to-own option that allows you to use your tires as you pay for them. They become yours at the end of the lease term or when paid off.

Make recurring payments

Estimates above are based on a $45 initial payment and a 12-month term using a monthly payment schedule. Weekly, bi-weekly, and semi-monthly payment schedules are also available.

The best way to free up available funds is to make on-time payments and complete your lease. Your original limit will be reset for you to continue to make purchases.

(“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce focused financial technology company, today announced it has over 20 total merchants on the Katapult mobile app featuring Katapult Pay, including Home Depot, Amazon, Wayfair, BestBuy, Nectar, HP, Ikea, and Lull.

Katapult is easy to use! All you have to do is apply and, if approved, check out from there. We'll send your device to you, and you'll make monthly payments to Katapult. You can keep the phone for as long as you want on the lease, choose to purchase it, or return it at any time.

Companies often charge penalty fees and interest on overdue payments, so it can get quite expensive. Some companies will give you a grace period – this starts when the payment is due, and if you pay during this time you won't be charged late fees. Check your contract with the lender to see if you have a grace period.

Key takeaways

Defaulting on a loan can result in late fees, debt collection and potential legal action from the lender. It is important to consider your budget and potential future expenses before taking out a loan to avoid defaulting.

If your payment is late, you could be charged a late payment fee. Depending on how late a payment is, it could also be reported to the credit bureaus, Equifax®, Experian® and TransUnion®. And that could affect your credit scores. If you plan to mail your payment, try to do so well before your due date.

Increased interest: Certain lenders may apply interest charges to the overdue payment, contributing to a higher overall loan cost. Collection calls and legal action: Multiple missed payments could prompt the lender to transfer your account to collections, leading to persistent calls and letters.