Zebit is a new platform that allows you to purchase items online in installments - without interest or fees. Zebit uses technology to make items more easily affordable, without gouging you as the consumer.
It sounds pretty interesting, so we wanted to dive in and see how it really works.
If you're curious, check out our Zebit review below.
Quick Summary
- Pay for products over time without incurring financing charges
- ZebitLine provides up to $2,500 of credit
- Does not impact your credit score
Who Is Zebit?
Zebit, Inc. allows people to shop online using a no-interest, no-fee line of credit. The co-founder, president, and CEO of Zebit is Marc Schneider. Zebit was started in 2010 as a business unit within Global Analytics Holdings. It was spun out as an independent company and incorporated in 2015. Zebit is based in San Diego, CA.
“Costly life events happen, but people shouldn’t have to pay up to four times retail prices for what they need,” said Michael Thiemann, co-founder and previous CEO, in a press release. “We are proud to bring zero percent financing to those working Americans underserved by traditional credit providers. We believe that giving people access to free financial resources, along with better options for life-event purchases, will help them make healthier financial decisions.”
Out of 2,417 reviews on Trustpilot, Zebit has an excellent rating of five stars and TrustScore of nine. Zebit also has an A+ rating with the Better Business Bureau and nearly four stars from 111 reviews. They have been a member of the BBB since 2015.
What Do They Offer?
Zebit offers its customers a line of credit up to $2,500 interest-free. Zebit sells products that it purchases at wholesale prices. The spread between the wholesale price and the listed price is how Zebit makes money.
Its customers can pay for items over time without incurring fees or interest. Customer credit scores are not affected when applying to Zebit.
ZebitLine
The Zebit Market is where you can purchase products interest-free. You can purchase those products using your credit or debit card, or your ZebitLine.
Your ZebitLine is the amount of credit you have for financing products. You’ll have six months to pay for the product. Payments are split across the six-month timeframe. Payments can vary depending on eligibility. Your ZebitLine can only be used in the Zebit Market.
There are many factors that go into determining the amount of credit you’ll get on your ZebitLine. Zebit does re-evaluate your payment history every three to six months. If you have a good payment history, there’s a chance you’ll get an increase in your ZebitLine.
It’s best to put your payments on automatic payments, so you never miss a payment. On the flip side, your ZebitLine can decrease depending on repayment behavior.
It’s important to know that your ZebitLine is only valid with your current employer. Once you leave that employer, your ZebitLine is discontinued. Zebit is looking into allowing employees to bring their ZebitLine with them when they change jobs.
ZebitScore
A ZebitScore is a determination of your overall financial health. ZebitScores are unrelated to your ZebitLine. Meaning, your ZebitLine is not impacted by your ZebitScore.
Zebit does provide suggestions to help improve your ZebitScore.
Zebit Market
The Zebit Market carries many different types of products. Categories include, but are not limited to, the following:
- Electronics
- Computers
- Furniture
- Appliances
- Health equipment
- Home goods
- Kitchenware
- Accessories
The products sold in the Zebit Market are always being updated. Items in the Zebit Market are new. Any used or refurbished items will be explicitly marked.
You don’t have to use your ZebitLine to pay for items in the Zebit Market. Zebit accepts credit and debit cards. When paying with a credit or debit card, you’ll pay one price. When paying with your ZebitLine, you’ll see the frequency of payments to be made each month. There is no difference in price (i.e., you don’t pay anything extra) when using your ZebitLine.
While credit card companies report your payments to the major credit bureaus, allowing you to build up credit, Zebit does not report your payments to any credit bureaus. In other words, Zebit doesn’t help in building up your credit.
Are There Any Fees?
No — Zebit is interest-free and fee-free.
If it's free, how does Zebit make money? Well, it's tricky. Zebit focuses on specific appliances and other large products where they can make a profit like a retailer. Basically, the profit on the sale, and are basically taking installment payments on that product. They end up making whatever profit they can versus what they bought the item for.
How Do I Open an Account?
Visit https://zebit.com. You’ll need to be over 18, employed, retired, or disabled with benefits.
Zebit does require your Social Security number to validate your identity. However, Zebit does not check your credit report, and there is no impact on your credit score.
Is My Information Safe?
Yes — Zebit uses bank-grade encryption on its website. Your Social Security number is encrypted. Zebit does not sell your contact information.
Is It Worth It?
Depending on the price of the product in the Zebit Market and if you want additional time to pay for a product without incurring any additional finance charges, Zebit can be worth it. Comparison shopping products in the Zebit Market with those on other sites will reveal if there is any value in buying the product through Zebit.
Zebit’s main advantage is paying for a product over time without incurring fees, assuming the product is priced competitively.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared toward anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications, including the New York Times, Wall Street Journal, Washington Post, ABC, NBC, Today, and more. He is also a regular contributor to Forbes.
Editor: Clint Proctor Reviewed by: Claire Tak
