What's the difference between buying flights on finance and with a deposit?

Buying flights on finance and paying with a deposit are two ways to book your flights now and pay later. Unlike the traditional way of purchasing your flights entirely upfront, these methods let you split the cost of your travel over time.

But what actually are the differences between flights on finance and a deposit?

This article will discuss what each payment method is and will also delve into the positives and negatives so that you can decide if either method would work well for you.

What are flights on finance?

When you buy something on finance, you're borrowing it from a lender. The money that goes into purchasing your flight tickets isn't technically yours and, therefore, needs to be paid back.

Different lenders will let you pay back your flights at various speeds. If you want to make purchasing your flights slightly easier, then choosing a short-term payment scheme would be in your best interest. Often, plans that only require 3 or 4 monthly instalments will be interest-free.

On the other hand, if you want to purchase expensive flights and pay them back slowly in small amounts, you can pick a longer-term plan that may require interest. At Alternative Airlines, the lengthiest contract is 60 months (5 years), available with Contact Now.

How can I book my flights on finance?

At Alternative Airlines, you can book your flights on finance by selecting a Buy Now Pay Later (BNPL) at checkout.

With 20+ BNPLs to choose from, subject to your location, you can book your flights now and then pay back over time.

The varied contract lengths mean that with certain BNPL lenders, you'll still be making payments after your vacation, allowing you to fly now and pay later.

Alternative Airlines currently has BNPLs available to people living in various countries across Europe, North America, the Middle East, Asia, Oceania and North Africa.

Choose from top BNPLs like Klarna, Afterpay and Affirm.

To book your flights on finance, all you have to do is go to checkout. Once you get to the payment stage of your booking, you'll see all the BNPLs available to you.

The benefits of flights on finance:

• Widely available - The BNPLs available to you depend on where you live and your chosen currency. At Alternative Airlines, there are BNPL options available across a vast number of countries, such as the United Kingdom, the United States, the United Arab Emirates, Canada, Australia, Singapore, and many more!
• Varied contracts - You can select the contract that best suits your financial needs, with short, long-time and interest-free plans available. With so many options, you can choose the contract that works best for you.
• Fly now and pay later - You can book your flights now, go on vacation, and pay for those flights after they've happened! This means there's no rush to pay back large sums of money, causing less strain on your wallet.

The negatives of flights on finance:

• May require interest - Certain BNPLs will involve interest. If the one you've selected includes interest, you will be made aware of this. Interest may also be applied to late payments. Resulting in the flight total being more expensive than if paid upfront.
• May require a credit check - Some BNPLs will conduct a credit check. If they find your credit score is too low, you may be denied a loan. If you miss payments, your credit score may be lowered, making it hard to get loans in the future.
• Lingering payments - While fly now pay later has its positives, the lingering payments can get burdensome. Depending on your contract, you may still have payments to make after your flight. Once the vacation's finished, having to continue making payments can feel anti-climatic. If you frequently take out loans, lingering payments can accumulate into a large sum of debt.

What are deposit flights?

When you put a deposit on something, you're paying a small initial fee to secure the item. You'll then pay the rest of the sum over time.

At Alternative Airlines, this can be applied to flights. You select your booking and then pay a small upfront cost. This confirms the ticket belongs to you, just like if you'd purchased entirely upfront.

How can I book my flights with a deposit?

At Alternative Airlines, if you want to book your flights with a deposit, you'll select Slice Pay at checkout.

Slice Pay is a travel-specific layaway product that lets you put a 10% deposit on your flights. Afterwards, you can continue paying for your flights in up to 26 weekly instalments that end at the latest around a week before departure.

Slice Pay is currently Alternative Airlines' sole way of paying with a deposit.

If you're living in the United Kingdom, the United States, Canada, Australia or New Zealand, you'll see Slice Pay as an option at checkout.

The benefits of a deposit:

• Interest-free - Slice Pay is entirely interest-free. You won't even be charged interest for late payments! However, if you fail to have finished paying for your flights by your contract's end date, around a week before departure, your flights will be cancelled.
• No credit checks - Slice Pay has no relation to credit. It conducts zero credit checks, meaning you can book now and pay later even with a bad credit score. This also means that any late or failed payments won't lower your credit.
• No lingering payments - You'll have finished paying for your flights before departure. Enjoy the benefits of paying in small instalments while not worrying about continuing to pay once your flights are up.

The negatives of a deposit:

• No fly now, pay later - Payments must have finished before departure. Otherwise, your flights will be cancelled. This means that depending on how late you put a deposit on your flights, you may have to pay back in large instalments.
• Flight cancellation if payments aren't made - Late payments are accepted with Slice Pay. You'll be reminded of your overdue fee but won't be reprimanded with any interest. However, if you fail to finish paying by the final payment date, your flights will be cancelled.
• Not widely available - Slice Pay is only currently available to customers in the UK, the US, Canada, Australia and New Zealand.

The differences between buying flights on finance and with a deposit:

Can I fly now and pay later?

✔️/ ❌ Finance - Depending on your chosen contract, you can fly now and pay later. With some contracts lasting beyond a year, you can pay back your tickets long after travel.

❌ Deposit - Flights must be paid in full before departure. If payments haven't been made by the end date, around a week before your flights, your tickets will be cancelled.

Are there any credit checks?

✔️/❌ Finance - Depending on the BNPL, your credit score may be checked. If your credit score is low, you may be denied the loan. If you fail to make payments, this can negatively impact your credit score, stopping you from getting loans in the future.

❌ Deposit - There's no relation between deposit travel through Slice Pay and credit. Your credit score won't be checked, meaning you can travel with good or bad credit. If you miss a payment, your credit score won't be impacted.

Are there any interest fees?

✔️/❌ Finance - There may be interest fees depending on the BNPL you select. This will be made clear to you at checkout. If you fail to pay on time, you may be charged interest.

❌ Deposit - No interest fees are involved, not even for late payments.

Who is it ideal for?

💫 Finance - Brilliant for people with a good credit score who want to make their flights more affordable by paying over a short or long period. Great for last-minute bookings as payments can continue being made after flights.

💫 Deposit - A great way to pay over time even if you have a low credit score. Perfect for people who've booked flights early as you can pay back slowly and spread the cost over up to 26 weeks.

Is it better to reserve flights through buy now, pay later or a deposit?

This is entirely up to you. As you can see, each has its positives and negatives. Whichever would work best for you can be dependent on a variety of factors, such as where you live, how far in advance you've booked and your credit score.

Both methods are popular and trusted ways of paying for your flights over time, and both are available at Alternative Airlines!

Book your flights today and pay your way!

If this guide has helped you decide to either pay with finance or with a deposit, then there's no need to wait any longer to book those next flights.

Alternative Airlines is a trusted online booking company that lets you select from over 600 airlines. Whether you're looking for an ultra-low-cost airline like Frontier and Ryanair or a luxury carrier like Emirates and Etihad, we can help you secure that perfect booking.

If you're still unsure about using us to book your next trip, then check out our reviews. We're a 4.9-star company on Trustpilot! ⭐⭐⭐⭐⭐