Amazon Prime Day is happening July 8 through July 11, and it’s one of the best online sales events of the year. Whether you’re looking forward to getting a good deal on new tech, home goods or anything in between, there will probably be a deal for it on Prime Day. And if you’re lucky, you might even be able to take advantage of Amazon’s Layaway program for your next purchase.

Amazon Layaway isn’t available for everyone, so you’ll either see the option in your account when checking out or you won’t. If you’re not sure if you’re eligible, we’ll show you where to look to see if your item is eligible and how it compares to other payment options available.

For more, check out the early Independence Day deals you can grab right now before Prim Day kicks off.

Check your item’s eligibility for Amazon Layaway

If an item you’re looking at is eligible for layaway, you’ll see a tag that says Reserve with Layaway — you may also see this when you add it to your cart. If you don’t see it, your item likely isn’t eligible.

Once you add all eligible items to your cart, select Reserve with Layaway at checkout next to each item you’d like to place on layaway. If you’re using Amazon Layaway you will not have to have your credit checked, so you won’t need to worry about this program affecting your credit.

Amazon’s layaway program isn’t available for orders shipping to Connecticut, Illinois, Maryland, Ohio, Pennsylvania, Washington, DC or outside of the US. Also, Amazon may remove its layaway program even if you had it as an option before. 

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How Amazon Layaway works

Amazon divides the total price of the product you’re buying into five payments — not including tax and shipping. You’ll pay 20% upfront and make four additional 20% payments on the scheduled dates Amazon assigns. Your bill will come due every two weeks, for a total of eight weeks. Taxes and shipping costs will be included with your final payment, so it’ll be a bit more than the other payments.

When you make the first payment, Amazon reserves your item until it’s paid off — just like typical layaway. Once you pay it off, Amazon will ship the item to you. You won’t be charged interest while making payments, as you’re not financing your order.

What if I forget to make a payment?

If you forget to make one of your scheduled payments, Amazon will send you an email letting you know your payment attempt was unsuccessful. If you don’t make the payment before the next scheduled date, Amazon will cancel your layaway plan and refund all the money you’ve paid so far.

You won’t be charged any fees for overdue or canceled layaway plans. Also, if you have an overdue layaway plan, you won’t be able to start a new layaway plan.

If you decide to pay the balance in full ahead of time, log in to your Amazon account and go to My Orders > Order Details > Manage Payment Plans, and then click on Pay early.

How is this different from Amazon’s «Pay in 5 months» plan?

If you’ve never seen the «Amazon Layaway» name being advertised for a product, but do see the «Or $$$/month for 5 months (no fees or interest)» under the price of an item, then you’re actually in luck.

Also subject to availability, your purchase is broken into five monthly installments instead of over the course of eight weeks. Like Amazon Layaway, there are no additional fees or interest charges. And unlike Amazon Layaway, your items are shipped immediately. Your first payment will include the taxes and any shipping charges that may be involved, but the remaining four payments will all remain the same price.

How is this different from Amazon’s Affirm payment plan?

Using Amazon Layaway has no additional fees: Your only charges are for the product and any shipping costs and taxes. The Affirm payment plan lets you buy now and pay later, but you get your items immediately. This is because it finances your order, which means you’ll have to go through a credit approval process first.

However, with Affirm, if you miss a payment, it could potentially harm your credit score since Affirm reports some payment records, positive and negative, to the credit bureaus. Plus, it could come with interest, causing you to pay more in the long run — Affirm payment options can range anywhere from six weeks to 60 months. Some transactions may also be interest-free.

If you can wait eight weeks for the items you’ve ordered to be delivered, we recommend going with the layaway plan and avoiding buy now, pay later programs.

For more, here’s how to get Amazon Prime for free ahead of the big July sale.