Does Target offer Layaway? All related questions are answered below.
What's a Layaway?
Layaway is an altogether different process to buy stuff from the stores. It neither works like the credit cards nor any other billing plans. You don't get the article unless you finish paying up the entire payment. The stores keep it with themselves and hand it over to you once the customer has paid in full.
Target is one of the largest retailer corporations in the United States.
Process of Target Layaway
Though there can be some amendments based on the individual rules of different stores but below mentioned are the four major steps involved in the majority of the target layaway processes:
- Choose the product: This is the very first step involved in the process of target layaway. The client selects and picks up the article which he wishes to purchase. The catch here is that he cannot take it home yet. This stays with the stores as layaway. This is one of those points that makes it different from installment plans where the customer takes the article with him and pays the installment slowly.
- Make a down payment: Like any other loaning process or process that needs the customer to pay later or in installments, the customer is supposed to make a down payment depending on the terms and conditions laid down by the store's actual price product. This is generally a set percentage that needs to be paid by the client. There is also a one-time initial payment that needs to be paid at the time of set up.
- Make gradual payment: This comes to be the most important part of the entire process. With the customer's convenience and the conditions laid down by the store, the customer needs to make gradual payments over which can be weekly, biweekly or monthly. This is decided at the time of initiating the process of layaway.
- And it's yours: After the client completes the entire payment over time that he owed to the store, he is then handed over the article by the store to take it along.
Almost everything comes with good and not-so-good things. The same is with the layaways. We shall discuss the Pros and Cons of the process
Pros of the Layaway plans
Here are some of the pros of et plan that it comes with and has been proving itself to be a popular choice for many customers at different stores:
- Interest-free: Many ask how the layaway plans differently from credit cards or installment options. Yes, all of these gives a privilege of paying in small installments over time but one of the major differences is that even though the client pays in installments but he dies not to incur any extra charges or the interest which he would have to bear if he chooses payment options like credit cards.
- More options: The clients get more opportunities to purchase the stuff of their choice and that too without any extra charge.
- Get hold of even high-demand items: With the layaway plans, one can get even the most demanding electronics and toys during the holiday season. Till the time the stores lists them for the layaway option, the client s good to go to purchase them according to et conditions set down by the store
- Shop online: This is one of the most loved features of the layaway plans. One can purchase the most precious items even without going to the stores. Get the convenience at your home by shopping online.
- Get accepted easily: This happens to be one of the coolest features of the layaway plan. Unlike credit cards or other such billing options that allow you to pay later, it does not carry out any credit check—no more hassles of getting into a long process of credit checks.
Cons of the Layaway plans
Not everything about it can be rosy, and the plan also has some cons that are discussed below:
- One-time fee: There is no denying that the layaway plans do not interest those involved in the transaction. But, there is a one-time fee that the customer has to pay when setting up the process. There are cases where this extra fee seems pretty huge because of the not so huge cost of the article which the customer is looking to buy for him. Let's say a 10$ charge for buying an electronic item worth 1000$ might not seem to be a problem but paying a similar extra amount for a product as small as 50$v would make the clients think a second time for sure.
- Down payments: While a customer purchases an item using his credit card, no doubt he incurs interest charges that even get compounded over time. For sure, it does not demand any upfront payment in advance which is called a down payment. The customer needs to pay a fixed down payment for the layaway plan, which depends on the store policies and the article's cost.
- Strict terms and conditions: The stores do not make any credit checks and keep the article blocked for the customer, expecting some seriousness from the client's end. The client needs to be very punctual about making the payments. If the initial amount set up says that he needs to pay weekly or bi-weekly, he has to make sure that it is delivered well. If he misses, he might even lose the article and the previous money he has been paying as a part of the installments. So, these conditions make the plan a little strict.
- Not every item can be purchased: The stores tend to keep a different stock purchased using the plans. There is a high probability that the article you are looking to go for has not been supported in the layaway section by the store. This tends to become a non-trustworthy plan for the clients.
- May have to suffer loss: Let us understand this with the help of an example. A client buys an electronic appliance and pays half of the promised installments well on time, but halfway through, his company transfers him to a city and no longer needs the article for the time being. He would now be stuck. He will either have to pay the rest of the installments and take the appliance even if he does not need it or forget about the payment he has paid already because the store won't give that back to him.
Other options at Target
There are few other payment options available for the clients at the store. They are:
- Apple pay
- Debit cards
- Personal checks
- Target REDCard
- Target return vouchers
Conclusion: Target Layaway Policy Updates
Layaway is indeed a very good option for those with a limited budget every month. This enables them to grab the offers and then pay slowly as they get paid themselves. Moreover, the most popular and convenient advantage of no interest makes it a popular choice among the clients. But the fact that it incurs an upfront cost that might be too high for low-cost articles and the fact that they have very stringent conditions makes the client think a second time for sure before moving ahead with the option.