You can do this easily through their website. Creating and using an Affirm accountīefore you can make purchases through Affirm, you will need to have an account with the lender. These will generally start after one calendar month from the day that your loan is processed. The online store will send you the product or service, and Affirm will transfer them the money for the purchase.Īffirm will then become the creditor and send you regular reminders for your monthly payments. Once you have been approved, Affirm offers three options to buyers at checkout.Īfter the buyer accepts one of their payment plans, the purchase is processed as usual. This can be anywhere from 10% – 50% of the cost of the item.Īffirm may not approve the purchase if the borrower does not accept making the down payment. A downpayment may be requiredįor some borrowers, the company may ask for a down payment that must be paid during purchase. The better score you have, the lower your interest rate. If you pass the check, your current credit score determines the interest rate you will be charged. The check does not affect your credit score. When you make a purchase through the company, it carries out a soft check on your credit to assess your risk as a borrower. You need to have a good credit rating to use Affirm. Users are not charged extra for early repayment. Generally, borrowers have up to one year to pay the loan back. The 0% financing option is offered only at a select few stores.
The interest rates typically go from 0% – 30%. The company allows you to make a purchase at an online store immediately and pay it back over time through fixed installments. How Affirm worksĪffirm operates similarly to a credit card. The lender offers up to $17,500 to clients in financing, directly through its partnering retailers. The company also charges no service or prepayment fee, or any other hidden charges. The main benefit of taking the credit facility route through Affirm is that they do not charge their clients any late fees on delays. The credit can be paid off by the buyer through fixed monthly payments over time. They allow online shoppers to purchase goods and services from online vendors and retail shops on credit. What is Affirm?Īffirm is basically a loan financing company. Life happens, however, and sometimes you need something you don’t have the money to pay for at that exact moment. In an ideal world, unexpected expenses would always be covered by savings in an emergency fund, and big purchases would wait until you’d saved up the necessary cash. Unlike some personal loans, Affirm has no prepayment penalty, so if you pay your loan back before your final due date, you only pay the interest that has already accrued. You can sign up for an account at the Affirm website, or simply pick them as a payment option on the checkout page of their retail partners. When making a purchase at a participating retailer you simply choose the option you like at checkout. If you’re looking to make a big purchase-new furniture, musical equipment, even a coding boot camp-but don’t have the cash at hand, the startup company Affirm, offers an alternative to plunking that three or four-figure balance on a credit card.Īffirm offers easy, quick financing with simple terms and no hidden fees.
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