What is Gimmie, and how does it work?

Most BNPL services allow you to spend a few thousand dollars and pay off your purchases in a few weeks or months. Gimmie works differently – by giving you the option of paying over one or two years. You also get to make payments the way you get paid – weekly, fortnightly or monthly. There is also a 90-day retail price option, which means if you pay off your purchase in 90 days, you pay no additional charges.

There are so many options of what you can buy using a Gimmie account, from air fryers to televisions and mattresses; there’s a lot. Just jump onto the Gimmie website to browse the products available, and if you find something you need, you can just click on it, select a payment plan, and it’s yours!

Gimmie offers a range of payment plans that last one or two years and have repayment schedules that suit your needs. You can choose between weekly, fortnightly, or monthly repayments during the term. 

Gimmie will give you a repayment schedule and the plan price in advance, so you know what you’re paying. You may find the full price you’re paying to be a little more than the retail price of the item because Gimmie adds a little bit to cover the cost of using the platform. 

However, you’re free to pay off the purchase early before the payment plan ends. What’s even better is that if you pay it all back within 90 days, you’ll only pay the retail price, and no additional fees will be applied. If you pay off the amount before the payment plan term, but after 90 days, you’ll pay fees in all repayments up to the date of the final payment and an additional $20 on top of the retail price.

You’ll also be charged a $10 late payment fee if you miss a payment. Apart from the late fees and the plan fees, the platform doesn’t charge you any other fees or interest.

Like other credit providers, Gimmie will ask for your driver’s license or another form of ID to prove your identity. You’ll also need to provide your bank account information for Gimmie to confirm your creditworthiness and allow for payments. 

Additionally, to shop with Gimmie, you must be: 

• 18 years or older
• A citizen or permanent resident of Australia
• Not bankrupt

Gimmie is governed by the National Credit Code, so they take offering credit seriously. Therefore, they’ll carry out a credit check on you before approving your application to ensure you don’t take on more credit than what you can reasonably handle.

Your credit score is also used by Gimmie to calculate the plan fees they choose to charge you. Depending on your credit score and employment data, Gimmie places you in one of four pricing bands, Platinum, Gold, Silver and Bronze. Those with stable income and high credit scores are likely to be placed in the Platinum category and charged the lowest plan fees.

Unlike most other BNPL services, Gimmie doesn’t have any spending cap for users as such. Instead, they have a calculator on their website. It asks you how much you can afford to repay and the frequency to estimate the amount you may be eligible to spend on the platform.

BNPL services like Gimmie were introduced to help customers on a tight budget make big purchases they need and pay for them later in smaller, interest-free instalments. A credit card serves the same purpose, but you’re charged a high interest rate unless you pay off the full monthly bill. 

On the other hand, BNPL services allow you to repay your purchases through pre-determined interest-free instalments spread over a few weeks, months or even years, as is the case with Gimmie.

If you’re using Gimmie, if you repay the purchase in full within 90 days, you’ll only pay the retail price. If you choose to continue repaying the purchase beyond 90 days, there will be a small fee included in the total amount and spread over your repayments. 

The biggest benefit to using any BNPL service, but especially Gimmie, is the ability to make a large purchase like a new fridge, TV or furniture and not have to fork out thousands upfront. It allows you to purchase the product, have it delivered to your home straight away and pay it off in instalments. This may sound similar to taking out a loan, credit card or even renting products, but with Gimmie, you won’t be paying interest which can cause you to rack up further debt.

It’s worth remembering that, ultimately, BNPL is also a form of credit, and if you use it to buy things you cannot afford – it’s likely to lead to financial trouble. For instance, missing a repayment on Gimmie can lead to a $10 late payment fee. 

While this is a small amount, the fees could quickly add up if you miss several repayments, and if you default completely, you may be in for some large payments. Additionally, Gimmie may report your irresponsible financial behaviour to credit reporting agencies, which could bring down your credit score and prevent you from accessing other forms of credit in future.

Before signing up for a BNPL service like Gimmie, you need to be confident you can afford the repayments on your payment plan. If you think a financial commitment of one or two years will strain your budget significantly, it may be better to look at other sources for financing your purchase, such as building your savings and paying for what you need upfront.