AO Finance Information in 2022

Last Updated on 4th of July 2022 by Harry Bowden-Ford

AO Finance Information

Appliance purchases can be a severe dent in the finances, especially with the current cost of living situation. But when something goes wrong, they also need to be replaced so those essential chores can be carried out and to keep your household running smoothly.

Unfortunately, it’s impossible to plan for an appliance breakdown and it’s always the way that it'll come at the worst possible time. For times like this AO offer finance options when purchasing to help you spread the cost.

How Do I Apply For AO Finance?

You can apply for AO Finance in 6 straightforward steps:

  • First, add the product to your basket.
  • Then choose AO Finance as your preferred payment method and then click the ‘Check your eligibility’ option.
  • Create an AO My Account or log in to your own if you’ve already created one.
  • Complete the eligibility check. Completing the eligibility check does not affect your credit score.
  • After this, if you’re 100% happy to finish the application, the lender NewDay will carry out a full credit check. When they run the full credit check this may affect your credit score.
  • If you pass the credit check then you’ll have to read the legal information and the terms of the agreement. Then you can select your credit limit preference and add your e-signature. Then you’re all good to go!

Am I Eligible For AO Finance?

To be eligible for an AO finance account, there are a few criteria you must meet:

  • You need to be 18 years old or over
  • Have a regular income
  • Be a permanent UK resident or have lived in the UK for the last 12 months (apart from HM Armed Forces Personnel)
  • Hold a current UK bank account
  • Be able to provide a valid email address and mobile phone number
  • You don’t already have an AO Finance account.

What Finance Options Are Available?

AO don’t just offer one finance payment option, instead, they offer 4 different choices to suit any circumstances or preferences. The flexible payments option works similarly to a traditional credit card. There’s no set timeline for you to make your repayments, you just have to pay your contractual minimum and can pay more when you can afford to.

There’s also the option of paying using instalment plans. These plans let you pay a fixed amount each month on all products over a predetermined period. You can choose to repay your agreement over 12, 24, 36 or 48 months.

Buy now, pay later lets you make no payments on selected electricals and appliances over £200 during the promotional period. Once this promotional period ends you then have the choice to pay in full and avoid paying interest or you can choose to repay using the flexible payment option and begin to accrue interest.

AO also offer a 0% interest instalment plan on selected electricals periodically. This involves you paying back a fixed amount every month for a fixed period without interest being charged. With the 0% interest instalment plan, you end up paying no more than you would by paying for your purchase up front.

How Much Interest is There on AO Finance Orders?

A representative example of interest added on to AO Finance orders is 19.9% APR Representative (variable). 19.94% PA Purchase rate (variable) with a £1200 Assumed credit limit. Credit, interest and availability of offers are subject to status and terms apply.

What Are The Costs of AO Finance?

The cost of AO finance differs from option to option. The flexible credit option involves you paying a minimum monthly payment. This payment amount will be the higher amount of either £5, or the full amount you owe if the owed amount is less than £5, or the sum of interest, default fees and 1% of the full amount you owe including the interest and default fees as shown on your monthly statement. You will be charged interest You can choose to pay more in months when you can afford it though as you’ll pay off the balance sooner. By not paying the minimum monthly payment you will be charged a late payment fee and may be reported to credit reference agencies possibly making it difficult to get credit in the future. You will also be charged a fee for going over your credit limit.

Instalment plans work by spreading the cost of the appliance and the interest over 12, 24, 36 or 48 months. An instalment plan can help you pay off the balance faster and cost less than paying off contractual minimum payments as you’ll end up paying less interest. When choosing this method you will need to pay at least your contractual minimum payment and your monthly instalment payment each month to prevent your instalment plan from being cancelled and changed to a flexible credit arrangement. Instalment plans are only available on appliances costing £200 or more and you’ll need enough available credit to cover both the price of the appliance and the interest over the instalment plan period.

Buy now pay later allows you to buy a product and pay nothing for 6 or 12 months depending on which you choose. There are no payments required on these purchases during this promotional period and once the promotional period is over you can choose to pay off the balance in full to avoid paying interest. If you choose not to pay it off in full then the balance will be moved to a flexible credit balance and you’ll start to be charged interest at the standard purchase rate and you’ll need to make at least the minimum monthly payment. Again, this method is only available on appliances that cost £200 or more. These options are also only offered to you depending on the result of your credit check and NewDay’s assessment and some buy now pay later options may only be available as part of a promotion.

The 0% interest instalment plan will spread the cost of the appliance over a fixed term by paying an agreed monthly amount. You won’t have to pay any interest and your balance will be cleared by the end of the 0% promotional period. 0% interest instalment plans are normally only offered on appliances costing £200 or more but are occasionally offered on items under £200 as part of a promotion. If you miss a payment you will be moved over to a flexible credit plan

What Do I Do If I'm Having Financial Difficulties?

If you’re struggling to make your finance payments, you should contact NewDay as soon as possible so they can make suggestions on how to help. You can reach their customer services on 0333 220 2598. Don’t let yourself put this off as avoiding issues with finance agreements can lead to much larger bills further down the road.

How Do I Manage My Account?

By using the NewDay Online Account Manager you can check your balance, make payments, view statements and any notices as well as change your details. You can also use it to close your account. You don’t have to pay any fees or charges to close your account for AO Finance but you do have clear your balance before closing it.

Who Do I Contact About AO Finance?

If you have any questions before using AO Finance then be sure to take a look at the AO Finance FAQs to see if they answer your questions.

If you have any questions after completing an order then get in touch with NewDay, the provider of finance for AO. You can call them on 0333 220 2598 between 9 am and 7 pm Monday to Friday, 9 am to 5 pm Saturday and 10 am and 4 pm on Sundays. When calling them have your account number at the ready, You can find your account number in the emails and SMS text messages sent to you by NewDay when opening your account. Calls to NewDay are charged at a standard national rate and calls from mobiles and other operators may vary in cost.

So that's all you need to know about the finance and payment options at AO. Now all you need to do is to check out the latest and biggest AO discount codes and deals and save on those household purchases.

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