What Pay Loft Credit Card Is
Pay Loft is a credit card issued by WebBank, a Utah-based bank, and marketed primarily through the Loft clothing retailer and its sister brand Ann Taylor. The card works like a standard retail credit card: you use it to make purchases at Loft, Ann Taylor, and their online stores, and you pay back what you owe over time with interest.
The card is not a prepaid card or a debit card. It is a line of credit, which means the issuer lends you money at the time of purchase, and you are responsible for repaying it. The card comes with an annual percentage rate (APR) that varies based on your creditworthiness at the time you open the account.
Like most retail cards, Pay Loft offers promotional financing periods — typically 0% APR for a set number of months on may have access to purchases — but only if you meet the terms of the promotion and make payments on time.
Key Takeaways
- Pay Loft is a retail credit card issued by WebBank that you can use at Loft and Ann Taylor stores and online.
- The card charges interest on purchases unless you may have access to for a promotional 0% APR period and meet the payment terms.
- Your credit score and payment history determine whether you are approved and what interest rate you receive.
- Missing a payment or failing to pay off a promotional balance before the period ends can result in interest charges on the full amount, including past purchases.
How the Pay Loft Card process and Approval Work
When you open a Pay Loft account, WebBank will check your credit report through one or more of the three major credit bureaus (Equifax, Experian, or TransUnion). This is called a hard inquiry and it temporarily lowers your credit score by a few points.
Approval is not may provide. WebBank looks at your credit score, payment history, and current debt levels to decide whether to issue the card and what APR to assign. If you have a lower credit score or a history of missed payments, you may be denied, or you may receive a card with a higher interest rate.
If you are approved, you will receive a credit limit — the maximum amount you can charge to the card. This limit is based on your creditworthiness and may be lower than you expect. You can request a credit limit increase after you have used the card responsibly for several months.
Interest Rates and Promotional Financing Periods
The regular APR on Pay Loft purchases varies, but typically ranges from 19% to 27% depending on your credit profile. This is higher than most general-purpose credit cards, which is common for retail cards.
Pay Loft frequently offers promotional financing — usually 0% APR for 6, 12, or 18 months on purchases of $50 or more. However, these promotions come with a critical condition: if you do not pay off the full promotional balance by the end of the period, the card issuer will charge you interest on the entire amount retroactively, going back to the original purchase date. This is called deferred interest.
For example, if you charge $500 during a 12-month 0% promotion and pay $400 by the end of month 12, you owe interest on the full $500 for all 12 months, not just the $100 remaining balance. The interest charge can be substantial and is added to your bill when ready.
How to Make Payments and Avoid Deferred Interest
You can pay your Pay Loft bill online through the card issuer's website, by phone, by mail, or in-store at Loft or Ann Taylor. Payments are due by a set date each month, and the card issuer will charge a late fee if you miss the important date.
To avoid deferred interest on a promotional purchase, you must pay the full promotional balance before the 0% period ends. If the promotion is for 12 months, you have 12 months to pay it off completely. Set a reminder for the last day of the promotional period so you do not miss the important date.
If you cannot pay off the full balance before the promotion ends, consider paying as much as you can before that date. Any remaining balance will accrue interest at the regular APR, but at least you will avoid the retroactive interest charge on the amount you did pay off.
Fees and Penalties
Pay Loft charges a late fee if your payment arrives after the due date. The amount varies but is typically $25 to $40 for the first late payment and may increase for subsequent late payments.
There is no annual fee to hold the card, which is one advantage over some other retail cards. However, if you carry a balance beyond a promotional period, you will pay interest every month until the balance is paid off.
If you miss a payment by 30 days or more, the late payment will be reported to the credit bureaus and will appear on your credit report for up to seven years. This can lower your credit score and make it harder to borrow money in the future.
When Pay Loft Makes Sense and When It Does Not
Pay Loft can be useful if you shop frequently at Loft or Ann Taylor and can pay off promotional purchases before the 0% period ends. The card offers no rewards or cash back, so you are not earning anything extra on your purchases — you are straightforward getting the option to pay over time interest-free if you meet the terms.
Pay Loft is not a good choice if you carry a balance regularly or if you are unsure whether you can pay off a promotional purchase in time. The regular APR is high, and the deferred interest trap is straightforward to fall into. If you are building credit or recovering from past payment problems, a general-purpose credit card with a lower APR or a secured credit card may be a better option.
If you already have credit card debt, opening a new card — even a retail card — will lower your credit score temporarily and add another monthly payment to track. Consider whether you truly need the card or whether you could straightforward pay with cash or a card you already own.
How Pay Loft Affects Your Credit Score
Opening a Pay Loft account will lower your credit score by a small amount in the short term because of the hard inquiry and the new account. Over time, if you make all payments on time and keep your balance low, the card can help your credit score by adding to your payment history and lowering your credit utilization ratio (the percentage of your available credit that you are using).
However, if you miss payments or carry a high balance, the card will hurt your credit score. Late payments stay on your credit report for seven years and can make it difficult to borrow money, rent an apartment, or even get a job in some fields.
Frequently Asked Questions
What happens if I do not pay off a promotional balance in time?
The card issuer will charge you interest on the full promotional amount retroactively, going back to the original purchase date. This is called deferred interest. For example, a $500 purchase at 0% for 12 months will cost you roughly $100 in interest if you do not pay it off by month 12, even if you only owe $100 at that point.
Can I use Pay Loft anywhere or just at Loft and Ann Taylor?
Pay Loft can only be used at Loft, Ann Taylor, and their online stores. It is not a Visa or Mastercard, so you cannot use it at other retailers. If you need a general-purpose credit card, you will need to open a separate account.
What is the credit limit on a new Pay Loft card?
Credit limits vary based on your credit score and income. There is no standard starting limit. If you are approved, WebBank will tell you your limit when you open the account. You can request an increase after using the card responsibly for several months.
Does Pay Loft offer cash back or rewards?
No. Pay Loft does not offer cash back, points, or other rewards on purchases. The only benefit is the option to use promotional 0% financing on may have access to purchases if you meet the terms.
How do I check my Pay Loft balance and due date?
You can check your balance and due date online through the card issuer's website, by calling the customer service number on the back of your card, or by logging into the mobile app if one is available. You will also receive a monthly statement by mail or email showing your balance, due date, and minimum payment.