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Retailers and stores offering layaway services enable you to make a deposit on an item to reserve it for future pickup. Simply put, you pay a deposit, and the store holds the item for you. This proves handy when you’re low on cash.
You won’t take the item home immediately, but it becomes yours after you’ve made all required payments.
During the Great Depression, layaway emerged as a method for retailers to assist financially challenged customers in purchasing higher-priced items.
During the 1980s, layaway programs lost popularity as people increasingly relied on credit cards for significant purchases. However, around 2008, during an economic recession, layaway experienced a revival as individuals became more cautious about using credit cards.
Are there still stores with Layaway?
Some stores continue to offer layaway options. Examples include Kmart, Sears, Burlington, and several jewelry and furniture companies.
However, the availability of layaway has decreased, with many stores, like Walmart, now opting for financing alternatives through the buy now, pay later companies such as Affirm, Klarna, and Afterpay or through store credit cards.
Some retailers still offer layaway services, and we’ve outlined them below, along with details on deposits and payments.
Additionally, we’ve provided a list of stores that don’t offer layaway but provide alternative financing options.
What is Layaway?
Layaway is a retail payment method where you make a deposit on merchandise, and the store holds the item for you. You then pay the remaining cost in installments. Once the full balance is paid, you can retrieve the item from the store.
How does layaway work?
Layaway plans differ from payment methods such as Affirm or credit card purchases.
When using Klarna or a credit card, you receive the item immediately and pay for it gradually. In contrast, layaway involves making payments over time, but the items stay with the retailer until the full payment is made.
While specific store rules may vary, the fundamental process of most layaway plans remains consistent.
Here is how layaway operates:
- Choose your items: Select the products you want, keeping in mind that layaway may be available in-store only or for both online and in-store purchases, depending on the store. It’s often limited to specific departments like furniture, jewelry, or electronics.
- Make a deposit: Pay a deposit to secure your chosen items. The deposit amount can be a fixed dollar amount or percentage of the total purchase cost.
- Make payments: After the initial deposit, adhere to the store’s payment schedule. Payments may be required every two weeks, monthly, or at another specified interval.
- Pick up your items: Once you’ve paid the total amount, retrieve your items. Be aware that some stores may charge service fees in addition to the product cost.
How much does Layaway cost?
When you use layaway, you pay a deposit and may encounter additional fees like service, restocking, or cancellation fees. Deposits vary among stores, typically ranging from $10 to 20% of the total purchase amount.
Stores may or may not charge service fees, and their policies vary. Fees may include:
- Service Fee: This covers the cost of storing the item and handling multiple payments.
- Cancellation Fee: Most stores impose a cancellation fee if you cancel a layaway plan or miss payment deadlines.
- Restocking Fee: Some stores charge a restocking fee for late payments or failure to complete payments by the due date.
Does layaway affect your credit?
Layaway plans do not affect your credit score. Stores do not review your credit report to determine eligibility for layaway programs. Therefore, your credit rating remains unaffected when opting for layaway.
While making on-time payments on layaway is beneficial, it does not improve your credit score. Unlike credit cards, layaway does not influence your credit rating, providing a worry-free option for those concerned about their credit impact.
Pros & cons of layaway plans
Understanding the advantages and disadvantages of layaway is essential before deciding if it’s the right financing option for you.
Here are the pros and cons of layaway plans
Pros of layaway plans
Firstly, let’s discuss the advantages. Layaway offers numerous benefits when compared to various other forms of financing.
Easy acceptance criteria
Choose layaway if you want to avoid credit checks and complications. Unlike applying for a credit card, which impacts your credit score, layaway programs by retailers don’t involve credit checks, ensuring approval.
Typically, layaway only demands proof of ID and a deposit for the item. This makes it an ideal option if you’ve faced credit issues or lack a credit history.
Interest free
Layaway plans offer an interest-free option for your purchases, unlike credit cards, which often have high-interest rates. While layaway plans may have fees, the overall cost can be lower than using a credit card.
If you have a zero-interest credit card, it may be a cheaper option. But if you want to steer clear of interest charges, layaway plans can be a viable choice.
Keeps high-demand items available until you need them
Layaway is a valuable option, especially during busy holiday seasons when high-demand items, such as electronics and toys, quickly run out of stock. This service allows you to secure your desired item by having the store reserve it for you, ensuring you’ll have it ready for the holidays.
Opens up more buying options
Diverse purchasing options benefit consumers. While credit cards are useful, if you prefer not to charge holiday gifts, lack a credit card, or avoid store cards, layaway offers an alternative method for spreading payments over time.
It’s a viable option, especially when stores don’t provide buy now pay later plans like PayPal Pay in 4 or Klarna.
It’s sometimes available online
Many online retailers offer layaway purchase plans, eliminating the need to visit physical stores. This convenient option saves you from waiting in long lines, searching multiple stores for popular items, and dealing with crowded holiday or seasonal shopping periods.
Cons of layaway plans
While layaway plans offer several advantages, it’s essential to be aware of some drawbacks.
Fees
Service fees can become costly, especially for smaller purchases. For instance, a $10 fee on a $50 item adds 20% to the total cost.
It’s essential to check the percentage of the purchase represented by the service fee. While a $10 fee on a $500 item is reasonable, for smaller items, the fee can be relatively high, as mentioned earlier.
Some places charge high deposits
When using layaway, a store typically requires a down payment. The amount varies, often around 10%, which can be significant for expensive items. If you have limited cash for a down payment, layaway might not be the most suitable choice.
You have to follow a payment schedule
Layaway programs involve making regular payments. For instance, a store might ask for in-store payments every two weeks throughout the layaway period. This can be inconvenient, requiring frequent trips to the store.
Alternatively, some places allow more flexibility in payment scheduling, but there’s a deadline for the final payment. Missing this deadline may result in losing the items and incurring fees.
If you decide not to complete the layaway agreement, you won’t lose the money already paid, but cancellation fees apply. Additionally, some stores charge a restocking fee to return items to the shelves.
What stores currently offer layaway?
Fewer stores currently provide layaway options compared to the past.
Many businesses that previously offered layaway plans have transitioned to buy now pay later alternatives like Klarna. Walmart, for instance, has shifted from layaway to buy now pay later plans with Affirm.
Alternatively, some stores facilitate financing through their own store credit cards.
In the later part of this article, I will list stores that offer various financing options.
Nevertheless, a handful of stores continue to offer layaway services.
Below is a list of stores that offer layaway services.
1. Kmart
- Availability: 8-week plans offered in-store and online; 12-week plans available in-store for purchases over $300.
- Deposit: $10.
- Payment schedule: Bi-weekly payments, with balance completion in 8 or 12 weeks.
- Other fees: $5 service fee, $10 cancellation fee (8-week); $10 service fee, $20 cancellation fee (12-week).
- More information on Kmart’s Layaway policy
2. Sears
- Availability: 8-week plans in-store and online; 12-week plans in-store for purchases over $300.
- Deposit: $10.
- Payment schedule: Bi-weekly payments, completing the balance in 8 or 12 weeks.
- Other fees: $5 service fee, $10 cancellation fee (8-week); $10 service fee, $20 cancellation fee (12-week).
- More information on the Sears Layaway policy
3. Burlington (formerly known as Burlington Coat Factory)
- Availability: In-store only. The layaway option does not apply to food items, wall art, rugs, lamps, or furniture.
- Deposit: $10 or 20%, whichever is greater.
- Payment schedule: 30-day hold, paid in installments or full by expiration.
- Other fees: $5 service fee, $10 cancellation fee.
- More information on the Burlington layaway policy
4. Hallmark Gold Crown
- Availability: In-store.
- Deposit: 20% of total purchase.
- Payment schedule: Items held up to 90 days.
- Other fees: Varies.
- More information on the Hallmark layaway policy
5. American Freight
- Availability: In-store only.
- Deposit: Varied based on purchase cost.
- Payment schedule: Payments of at least $10 bi-weekly; final payment due within 24 months.
- Other fees: Varies.
- More information on the American Freight layaway policy
6. Jewelry Exchange
- Availability: In-store and online.
- Deposit: 25% of the total purchase price.
- Payment schedule: 6-month period, payments are due every 30 days starting from the date of purchase.
- Other fees: No specified fees; merchandise will be returned to stock if no payment is received for 90 days during the layaway period, and a store credit will be issued for all payments made.
- More information on the Jewelry Exchange layaway policy
7. Shane Co.
- Availability: Online and in-store.
- Deposit: 20% of the purchase price.
- Payment schedule: Choose between two options – one payment per month for 2 months or two payments per month for 6 months. Your jewelry will be shipped after the final payment.
- Other fees: None; 100% refundable and returnable.
- More information on the Shane Co. layaway policy
8. Day’s Jewelers
- Availability: In-store and online.
- Deposit: 10% of the purchase price.
- Payment schedule: You are obligated to make a monthly payment of at least 10% of the purchase amount.
- Other fees: 20% restock fee if canceled after 30 days; full deposit applicable to immediate new purchase.
- More information on the Day’s Jewelers layaway policy
9. Get it Now!
- Availability: In-store only.
- Deposit: Depends on purchase cost.
- Payment schedule: Balance cleared within 90 days.
- Other fees: $25 restocking fee on cancellations.
- More information about the Get it Now! layaway policy
10. Reeds Jewelers
- Availability: In-store only.
- Deposit: 10% or $25, whichever is greater.
- Payment schedule: Monthly payments up to 1/6 of the remaining balance or $25, whichever is greater. Merchandise on layaway can be held for a maximum of 6 months, provided regular payments are made.
- Other fees: Not specified.
- More information about Reeds Jewelers layaway policy
Other places that do layaway
Several stores across the country offer layaway programs. If you’re nearby, you can consider making a layaway purchase.
Below are additional stores with layaway programs:
11. DFW Furniture Warehouse in California
12. Choice Furniture & Mattress in Illinois
13. Kings Furniture Warehouse in New York
14. The Furniture Shop in Texas
15. Best Buy Furniture in Pennsylvania and New Jersey
Stores that don’t offer layaway but do offer other types of financing
Layaway services are becoming less common in most stores. Retailers like Walmart, which once offered layaway, now present alternative financing choices. These include buy now, pay later plans with companies such as Affirm or Klarna and store credit cards providing financing options ranging from 12 to 72 months.
Unlike traditional layaway plans, some buy now, pay later options with companies like Affirm and Klarna do not affect your credit score. It’s crucial to review the specific terms of the plan you choose to confirm its impact on credit.
On the other hand, credit cards can impact your credit score. Applying for a new credit card results in a hard inquiry, which may temporarily lower your score. Although the hard inquiry remains on your credit report for 2 years, its impact on your score is limited to a few months.
To avoid any impact on your credit score, consider opting for stores that offer financing through companies like Affirm or Klarna. While many of their plans are credit score-friendly, it’s advisable to check the details, as some may have different terms.
Here is a list of prominent retailers that provide financing options:
16. Amazon
- Financing type: Amazon Store Card allows you to make purchases and pay over time. Choose from 6, 12, and 24-month financing plans upon opening the Amazon Store Card
17. Walmart
- Financing type: Affirm financing is available for eligible Walmart purchases between $144 and $2,000, including tax. Pay off your purchase over 3 to 24 months, based on your preference.
18. Best Buy
- Financing type: Best Buy Credit Card provides 12-month financing on storewide purchases of $299 or more. No interest if the balance is paid in full within 12 months. Longer financing options (18 and 24 months) are available for select categories like home theater and Geek Squad purchases.
19. Ashley Furniture HomeStore
- Financing type: Choose from 6, 12, 18, 60, and 72-month financing plans with Ashley Furniture HomeStore.
20. Macy’s
- Financing type: Use Klarna to split purchases into 4 interest-free payments (for amounts between $100 and $1,000). Alternatively, get a Macy’s Credit Card and access special financing offers, such as 12 to 36-month financing on select categories and dates like furniture, mattresses, and fine jewelry.
- Learn more (Klarna)
- Learn more (Macy’s Credit Card)
21. The Home Depot
- Financing type: Enjoy 6 months financing on purchases of $299 or more, with the possibility of up to 24 months of financing during special promotions. Minimum payments are mandatory.
22. Lowe’s
- Financing type: Lowe’s Advantage Card offers 6 months special financing on purchases of $299 or more.
23. Big Lots
- Financing type: Big Lots provides a lease-to-own program through Progressive Leasing called Easy Leasing.
24. Apple
- Financing type: Apple Card offers a 24-month installment plan for paying off devices.
25. DICK’S Sporting Goods
- Financing type: The ScoreRewards Credit Card provides 12, 18, or 24-month special financing. Additionally, buy now pay later options available through Affirm.
- Learn more (ScoreRewards Credit Card)
- Learn more (Affirm)
26. Office Depot/OfficeMax
- Financing type: Office Depot/OfficeMax Personal Credit Account offers 6 months special financing on purchases of $299 or more.
27. Staples
- Financing type: Staples provides special financing for 6 months on purchases of $299 or more, 12 months on purchases of $399 or more, and 18 months on purchases of $599 or more.
28. Crate & Barrel
- Financing type: Crate & Barrel Credit Card offers 6 months special financing on purchases of $749 or more.
29. Pottery Barn
- Financing type: Pottery Barn Credit Card allows 12-month financing on purchases of $750 or more. Additionally, the buy now and pay later option is available with Affirm.
- Learn more (Pottery Barn Credit Card)
- Learn more (Affirm)
30. GameStop
- Financing type: GameStop allows you to pay off your item over 6 weeks with bi-weekly payments using QuadPay or Klarna.
Online layaway (pay over time): The future of layaway
Retailers are teaming up with online layaway services like Afterpay, Zip, and Klarna, allowing shoppers to create installment plans. Each service provides various plans and payment choices.
Let’s take a brief look at the main features offered by key layaway apps:
- Afterpay partners with numerous retailers such as Ulta, Urban Outfitters, and Anthropologie, offering layaway plans lasting three to twelve months. There are no extra fees if payments are made on time, and customers can reschedule payments up to three times annually.
- Klarna is used by retailers like Sephora, Finish Line, Macy’s, and GameStop. It provides diverse payment options, some with interest.
- Zip, formerly QuadPay, is utilized by Target, Amazon, Walmart, and Best Buy. It allows purchases to be paid off in four installments over a six-week period.
One significant distinction between online and traditional layaway? Online layaway services typically allow you to receive your item immediately rather than waiting until you’ve made all installments and fully paid for your purchase.
The bottom line
While layaway options have become less common, some stores still provide this service. Retailers like Kmart, Sears, and Hallmark Gold Crown continue to offer layaway plans. However, many businesses have shifted to alternative financing methods such as buy now pay later plans like Affirm and Klarna or store credit cards.
Unfortunately, popular retailers like Amazon and Walmart no longer offer layaway services. Amazon provides a credit card option, while Walmart allows customers to use the buy now pay later option with Affirm.
If you’re specifically seeking layaway plans, consider exploring the abovementioned options. If layaway isn’t available at your preferred store, there’s a good chance they offer alternative financing solutions. Check out the provided list of stores with various financing options for your shopping needs.
Happy shopping!