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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 you use a buy now, pay later method or you opt for layaway, it is important to know how layaway works and if it can work for you.
Though layaway programs can vary from store to store, the basic tenets of layaway hold true no matter the location.
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 2023:
Amazon’s layaway program allows you to put eligible items on layaway with a 20% down payment, and subsequent payments are stretched over five installments — including the first down payment — over eight weeks. Layaway is reserved for items sold by Amazon, and any taxes or shipping fees will be tacked on to your last payment before your item is delivered to you.
Best Buy stores do not have a layaway program per se 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.
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.
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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 on the first day. There is usually an extension around the holidays, but outside of that window, layaway items can be held up to 60 days. There is a $5 service charge and a $10 cancellation fee.
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%.
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.
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.
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 its layaway program when you shop online. Sears offers the same layaway program as its subsidiary Kmart.
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 your purchase without having to pay all at once. There are no service or cancellation fees, but there will be a varying APR depending on the purchase amount.
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 cancellation fees, there will be a varying APR that depends on the purchase amount.
| Store | Best For |
|---|---|
| Amazon | Paying in installments |
| Best Buy | Best Buy credit card holders |
| Big Lots | Low down payment |
| Burlington | $10 down payment option available |
| Guitar Center | Musicians who want to reserve gear |
| Hallmark | 90-day payment schedule |
| Kmart | Low-cost down payment and up to 12 weeks to pay |
| Sears | Low-cost down payment and up to 12 weeks to pay |
| Target | Financing only, but can pay monthly through Affirm, Quad or Klarna |
| Walmart | Financing only, but can pay monthly through Affirm |
Stores that offer layaway can change annually. For example, Walmart stores have offered layaway programs in the past but no longer do so in 2023. Instead of layaway, it now partners with Affirm for a buy now, pay later program. While not a traditional layaway set-up, this does allow you to finance your purchase and make small payments over time as opposed to one large payment on the day of purchase.
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 is a purchase strategy where a buyer reserves an item with a deposit and retrieves it when it is fully paid off. It is an agreement between the store and the customer that allows the customer to make small payments over time before taking something home, instead of one upfront payment.
Layaway plans and BNPL services have helped Americans with their purchasing power for many years. It can help you secure items at a certain price, earn store credit 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 a good idea to figuratively shop until you drop — 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 until it is fully paid.
Information is accurate as of March 30, 2023.
The article above was refined via automated technology and then fine-tuned and verified for accuracy by a member of our editorial team.
