What is Affirm Financing?
 

Affirm Overview
Affirm is a buy now, pay later app that functions like reverse layaway — you'll get the item upfront and pay for it over time. 
 

Affirm has multiple repayment options. You're able to split up the cost over four interest-free payments paid biweekly (with the first payment due at purchase), or over three to 60 months with interest. In some cases, depending on the merchant, Affirm won't charge interest on those longer-term loans. 
 

The APR on your long-term loans can range from 0% to 36% depending on your credit history, the retailer, and the amount you borrow. You'll get your exact terms when you check out. 
 

Affirm doesn't charge any fees to use its service — including late fees like some other buy now, pay later services do. 
 

How Affirm Works
To create an account, sign up at a partner store, on Affirm's website, or on its app. You'll need to have your mobile phone number, email address, and the last four digits of your social security number available. Affirm is currently available through hundreds of thousands of retailers.
 

Affirm will run a soft credit check to confirm your eligibility for its service when you go to make a purchase for the first time or create an account. Soft credit checks do not impact your credit score and merely give a lender an overview of your history as borrower. 
 

Affirm states that it will not report payments on certain types of loans to the credit-reporting agency Experian. If you have a 0% interest "Pay in 4" loan or the lender only offered one, interest-free three-month payment option when you applied, it won't report on those types of loans. However, if you are late on payments, Affirm will likely report that to Experian, especially if the loan becomes delinquent.
 

You aren't guaranteed purchase approval from Affirm. You may be approved at some stores but not others or may already have an Affirm loan and not be approved for another. Each loan application is considered separately, and checking your eligibility doesn't ding your credit. 
 

Key Features of Affirm
Flexible Payment Plans
Affirm offers several kinds of delayed payment plans. For purchases between $50 and $1,000, its "Pay in 4" option allows you to pay off in order over four equal installments spread across six weeks. The first payment is taken at checkout and then each subsequent payment every two weeks after until the order is paid off. You won't pay any interest or fees for taking advantage of this payment plan.
 

The other kind of payment plan, Affirm, offers functions similar to a traditional loan. For purchases of at least $50, you can opt to repay your order over the course of several monthly installments. You can choose to split the order total into three months, six months, 12 months, 18 months, 24 months, 36 months, or 60 months. You may be required to make the first payment as a down payment at checkout, depending on the retailer. These longer-term repayment plans also do not come with any fees but often charge interest. The interest rate you'll pay will be between 0% and 36%. If Affirm approves this loan, it may report your payments to the credit bureaus, impacting your credit score. 
 

Its newest options, launched in June 2024, include a "Pay in 2" plan and "Pay in 30" plan. The first splits a purchase in half with interest-free payments due over two months. The other gives you 30 days to pay off an order without incurring any interest costs.
 

No Fees
Affirm doesn't charge users any late fees, prepayment fees, annual fees, or account open or closing fees. It may charge interest depending on the payment plan you select. 
 

Affirm Card
To make shopping in stores with Affirm easier, the company released its own debit card, the Affirm card. You can use the card to pay in full for purchases or opt to pay over time by requesting a plan via the app before you buy or within 24 hours after buying. Keep in mind not all of your Affirm card purchases may be approved for a payment plan or for the full amount you want.
 

If you don't want to get an Affirm card but still want to use its payment plans to shop at physical stores or online retailers that aren't part of Affirms merchant network, you can also request a one-time-use virtual card in the app. With this feature you can request a payment plan covering a certain amount with one retailer and then scan the card at checkout within 24 hours of receiving the virtual card. This specific card can only be used once at the merchant specified, but you can request other virtual cards for purchases at other retailers.
 

Mobile App
Affirm offers a robust and well-reviewed app that allows users to easily manage their payments, see due dates, and browse items sold by its partner retailers. In the app, you can choose to set up autopay so you don't have to worry about remembering a due date. Or check its shopping tab for special discounts or promotions stores may be offering exclusively to Affirm users. 
 

Affirm Pros and Cons
Advantages

• Easy application process. Signing up online or through the app requires only a few pieces of personal information and you'll get a decision within seconds. 

• Credit check doesn't impact your score. To determine your program eligibility, Affirm conducts a soft credit check, which doesn't ding your score whatsoever. 

• Multiple repayment options. Divide the cost over four interest-free payments paid biweekly (with the first payment due at purchase) or pay over three or more months with interest. In some cases, Affirm won't charge interest on those longer-term loans.

• Zero interest on Pay in 4. Affirm will never charge you interest on its Pay in 4 option, making it a good choice to spread out the financial hit of a purchase — as long as you can fit it into your budget.

• No fees. Affirm doesn't charge late fees, prepayment fees, account opening fees or any other kind of fee.

• Transparent terms. Before you agree to use one of its payment plans, Affirm will provide a breakdown of the total amount you'll owe, including any interest, and the exact amount of each installment payment.

• Integration with major stores and companies. Thousands of partner retailers use Affirm, including Samsung, Poshmark, and Dick's Sporting Goods. 

• Convenient shopping on the mobile app and online. Affirms mobile application is well-reviewed, and its website is intuitive and easy to use for your shopping needs.

Drawbacks

• High interest charges for some users. While Affirm offers interest-free payment options, some of its longer-term repayment plans come with interest charges that can be as much as 36%. This can add to the overall cost of your borrowing and be more expensive than credit card financing. 

• Can hurt your credit score. Late payments may be reported to the credit bureau Experian and included in your credit report. While you won't be charged a late payment penalty with Affirm, you may see your late payments disclosed to Experian, a credit reporting agency.

• May led to overspending. Affirms repayment options can help make purchases more affordable, but it can also tempt you into buying more than you would have done otherwise because the costs appear lower.