Does Target Have Layaway? See Layaway Options at Target 2021 Updates

Find out if Target Does Have Layaway programs for customers in this article:

Does Target Have Layaway

Target Lawaway is a program where you can make a down payment on a particular item and then make payments on it until you had fully paid for it.

Apart from the convenience of the layaway to customers budget, it has successfully created frequent visits for retailers as well. However, Target layaway does not cater for in-store or online purchases.

We verified this information, from Target’s customer service representatives in various store locations. Target also stated that layaway is not available in its website’s help section.

What Is Layaway?

Layaway does not work the same way shopping with credit cards or using installment billing plans works. With layaway, you make payments consistently over a period of time, but your purchases will remain in the store until you are done paying for them.

While every store has specific rules, most layaway programs follow the same four basic steps:

  1. You select the items you want to put on layaway. A lot of stores may only offer layaway for items in certain sections, such as drinks or clothing.
  2. You make a down payment for the item first. The amount you pay varies by store. Some stores would allow you select the amount, while others charge an amount based on your total purchase price.
  3. You make little consistent payments over time. You have a choice to either make weekly, biweekly, or even monthly payments, depending on policy of the stores.
  4. Once you successfully paid off the total purchase price plus any layaway fees, you can then go pick up your items.


Advantages of Layaway Plans

In comparison to other methods of financing purchases, layaway could be your best option for the following reasons:

1. Interest-Free Purchasing

While layaway purchases does include some fees, you won’t be charged any interest on your purchases. Even with the fees to be charged, layaway purchases may cost far less than charging your holiday purchases to a credit card.

For instance, suppose that in January you were charged 18% interest in your credit card for a $900 Plasma. If you pay off the total amount in March, you’ll have paid just a month’s interest, or $13.50.

This makes the $5 service fee for this purchase more appealing, which means layaway is the better option.

2. More Purchasing Options

Layaway is a very good alternative to using a credit card to pay for your purchases. In the case that you do not posses a credit card and don’t wish to acquire a store card, layaway provides you an option to pay for purchases over time.

If you actually do have a credit card but would like to make it through the holidays without having charges for all of your gifts, layaway could be your best option.

3. Availability of Popular Items

Layaway is very useful during a busy holiday season when popular electronics and toys can sell out items very quickly. Having a popular item on layaway provides you a guarantee you will get it for the holidays.

4. Online Purchase Available

Some retailers provides layaway options for purchases made through their online stores. Online layaway will save you the stress of dealing with holiday shoppers, waiting in long queues, or having to search for a popular item in several stores.

5. Easy Criteria for Acceptance

Unlike a credit card, layaway programs rarely conduct income or credit checks before you get approved. To qualify for layaway all you need is just a proof of identification showing that you are at least 18 years of age and a down payment.

Since acceptance policies are not demanding, even people with poor credit scores can qualify for a layaway program.

Cons of Layaway

Layaway offers convenience and provides you with a better option for buying your holiday gifts. Unfortunately, layaway do have their disadvantages which you should consider:

1. Fees

Layaway fees could be sometimes exorbitant, especially for smaller purchases. For example, being charged a $10 service fee on a $600 laptop may be acceptable, but charges of a $10 service fee for a $50 toaster is adding to the cost of the product,

Unless your main worry is about a hot ticket item selling out before the holidays, it is much better to wait and have the cash to purchase smaller items to avoid service fees.

2. Down Payments

Unlike a credit card, most layaway programs will demand that you make down payment before the store will hold your purchases. Down payment amounts may depend on the store you visit, but some stores can charge up to 10%, a sizable fee for big-ticket items.

3. Strict Payment Terms

Many layaway programs do come with strict payment conditions. For example, one retailer may require you to make a bi-weekly payment in-store until you pay off the purchases.

Under these terms, you will need to be at the store every two weeks to make a small payment.

Other policies  are bit flexible  and you can make a payment on your own schedule, but demands that you make your final payment by a certain date. If you don’t do so before the stipulated date, you risk losing the items.

When you put an item on layaway, you will have to follow through with the retailer for several weeks.

4. Potential Losses

People enter into layaway programs with good intentions, but things happen. You may successfully pay off half of your purchase, but you then come to realization that you cannot pay for it entirely.

Or you might realize that you no longer need that item after making payments for several weeks.

You will not lose the money you have been paying if you don’t complete your layaway agreement, but you will have to pay more fees.

Most stores will charge you a cancellation fee for unhonored or canceled layaway agreements, and some stores will charge an additional restocking fee in order to restock the item.

5. Not Available for Every Purchase

Retailers has placed a limit on the kind of purchases you can place on layaway. For example, a retailer may only provide layaway options for electronics, jewelry, or other big-ticket items, but if you want to use layaway to pay for a popular item, you may have to check another retailer.

Other stores may place a minimum amount of down payment you make on their layaway program. In this case, you would not be allowed to layaway an individual item with a price tag below the limit although total purchase was over the limit.

Does Target Offer Layaway

Although Target does not do layaway, it does offer several other options for purchasing items which include:

  • Apple Pay
  • Cash
  • Credit cards
  • Debit cards
  • PayPal (online purchases)
  • Personal checks
  • Target gift cards
  • Target REDcard
  • Target return vouchers
  • Third-party gift cards (American Express, Discover, Visa, Mastercard)
  • WIC

Since Target doesn’t do layaway, you can make payment for your purchase over time by using a credit card, including Target’s REDcard.

Note: You don’t get store the item while paying for it with this method and that your purchase will accrue interest if you do not pay it off over several months.

Other Stores That Offer Layaway

There are several other large retail chains, such as Walmart that offers layaway programs to its customers with fairly low fees and minimal penalties.

Layaway is a good alternative only if you need to finance a few of your holiday gifts this year but you haven’t qualified for a credit card or in-store financing. The layayway program might help you if you want to try to avoid racking up more credit card debt this holiday season.

This article was crafted to help you to know if Target do offer layaway options for customers.

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