Affirm is one of the most common buy now, pay later services.
Well also answer common questions about Affirm and address how it may affect your credit report.
What Is Affirm?
Affirm is a buy now, pay later service that enables consumers to split large purchases into multiple payments.
When selecting a method of payback, shoppers can choose between short-term interest-free payments or more dispersed monthly payments.
Picking interest-free payments will spread your purchase over four payments every two weeks.
Founded in 2012,Affirmis a financial technology company headquartered in San Francisco.
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How Does Affirm Work?
Shopping with Affirm is relatively simple, and you’re free to begin one of two ways.
The first method is to visit a store that offers Affirm payments and pick the option at checkout.
Our preferred method isdownloading the Affirm appfor Apple iOS or Android devices.
The app also allows purchasers to view limited-time deals that you could combine with Affirm financing.
Affirm will provide you with a one-time-use virtual credit card for your purchase using this selection.
you’re able to use the card online or in store usingApple PayorGoogle Pay.
Youll begin by entering the total checkout amount, making sure to include tax and shipping.
If needed, you might round up to the nearest dollar.
Any unused funds are returned to your account, so you wont lose out on those pennies.
Once youve entered an amount, Affirm will prompt you to select a payment plan.
In our testing, we chose to finance $500 and were provided multiple repayment options.
No down payment is required.
It is important to note that your offers may not be the same as ours.
Your offered interest rates (APR) will vary based on personal financial factors.
If you plan to shop online, use the virtual numbers and enter them at checkout.
Otherwise, you could pick the option to add your virtual credit card to your mobile devices virtual wallet.
you’ve got the option to also make additional payments to pay off the loan faster.
By default, Affirm will AutoPay your loans with a provided credit or debit card.
Additional details provided here also include your interest rate, virtual card number and loan terms.
From other buy now, pay later services to traditional personal loans, there are several alternatives.
Others areAfterpay,Klarna,PayPalandSezzle.
If you are seeking personal loans, we recommend checking out ourbest personal loan guidefor assistance.
If loans are new to you, we also recommend reading ourstep-by-step guide.
Selecting a zero interest credit card is another option when making a large purchase.
Check outThe Penny Hoarder Academy: Credit Cards 101to learn more about the basics.
Credit cards can be helpful or devastating, depending on how you use them.
Affirm may report loan payment history to Experian.
Creating an Affirm account or seeing if you prequalify will not affect your credit history or credit score.
Zero-APR loans are the best choice when selecting an Affirm repayment plan, as you wont owe additional interest.
When Affirm does report, it reports only to Experian.
Affirm does not specify a minimumcredit scorefor its applicants.
But Affirm will consider your credit score as part of your overall system.
Your creditworthiness may be based on additional factors such as income and credit report.
No down payment is required to use Affirms services.
Affirm andKlarnaare two separate buy now, pay later services.
Both options enable consumers to make purchases that can be divided into multiple payments.
Michael Archambault is a senior writer at The Penny Hoarder specializing in technology.
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