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Affirm gives people small, instant loans for giant purchases. You might come across Affirm like a payment option at a retailer’s checkout, or apply for a loan through its mobile app.
Affirm rates and terms
|Loan amounts||Up to $17,500|
|Typical APR||10% – 30% (0% available at some retailers)|
|Time to funding||Immediate|
|Repayments||3, 6, 12, 24, or 36 months (longer terms available at some retailers)|
|Soft credit check?||Yes|
|How to qualify||
|Best for||Borrowers a new comer to credit who wish to pay for a large purchase over time|
|Clicking “Visit Affirm” will give you to Affirm’s website to have an application.
Is Affirm right for you?
Loans from Affirm are convenient when you really need to create a big purchase, so long as you have room in your budget to pay it off. It’s not advisable for an impulse buy or something you realize it can save you up for.
AFFIRM Can be a Wise decision IF YOU:
Must make an immediate purchase try not to have money saved or a credit card. Affirm gives borrowers short-term unsecured loans for one-time purchases such as a mattress, furniture or travel arrangements.
Have credit cards but your borrowing limit is gloomier compared to price of the purchase. Taking an Affirm loan is preferable to maxing out your credit card, which could lower your credit score.
Are new to credit and cannot qualify for a credit card. Affirm says it uses only soft credit report checks and runs its own algorithm to?measure a?borrower’s creditworthiness. In some cases, the company may ask to scan your bank transactions to check on your financial behavior or request a deposit, similar to a deposit, before giving you financing.
AFFIRM Isn’t a GOOD IDEA Should you:
Can save up. Paying upfront with money you’ve is cheaper than going for a loan with interest.
Can use a credit card that you simply pay off in full. If you’re able to pay your balance in full by the next deadline, then charging the acquisition doesn’t cost any interest. Charge cards offer other perks, such as travel and cash-back rewards or purchase protection for that items you buy.
Pay just the minimum on your credit cards. Financing with Affirm also carries interest, and when you do not have enough money to repay your credit card balance, it isn’t a good idea to undertake more debt.
Affirm personal bank loan review
Affirm is part of a wave of firms that offer “point-of-sale” financing, which means you will run across it when you are prepared to buy from a retailer. Affirm offers financing for furniture store Wayfair, mattress store Casper, travel site Expedia and?a lot more than 1,800 other retailers.
The San Francisco-based company runs a real-time, soft inquiry of your credit and decides if you should approve you for a financial loan amount that suits the cost of the item you’re buying.
Credit-building: If you are new to credit or posess zero high credit score, you may still be eligible for a financing, however your rate might be in the more advanced. After you receive your loan, Affirm reports payments to credit agency Experian, so making payments in time may benefit your credit score. Each Affirm loan you receive can have up as another loan on your credit history.
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Loan example: Affirm says the average customer requires a $750 loan and pays it back in nine months at an annual percentage rate of 18%. That means a monthly payment of $90 along with a total payment of $807.
Customer service: Affirm comes with an in-house customer support team, says it tracks customer service response times and attempts to ensure it resolves customer requests the very first time they contact the company.
How Affirm compares
Affirm loans in many cases are compared with charge cards, but it is easier to do a comparison with other unsecured loans, that also have fixed rates and terms. Klarna, another point-of-sale financing company, offers a credit line.
Here’s a rundown between Affirm, Klarna and typical offerings from other online lenders:
|Affirm loan||Klarna loan||Other personal loans|
|Used for||Loans through retailers||Line of credit with internet merchants||Any purpose (debt consolidation reduction, large purchases, medical expenses)|
|Loan amounts||Up to $17,500||Minimum of $300 for slice it option||Between $1,000 and $50,000|
|APR range||10% – 30% (0% available at some retailers)||19.99%||5% – 36%|
|Loan duration||3, 6, 12, 24 or 36 months (longer terms available at some retailers)||Minimum of six months||2 to 5 years|
|Time to funding||Immediate||Immediate||Up to some week|
|Fees||None||Late fee||Origination fee, late fee|
|Credit check||Soft check||Soft check||Soft check, followed by hard check|
How to apply for an Affirm loan
There are a couple of ways to get an Affirm loan:
- Select Affirm at checkout in a partnering retailer, either online or using the app in a store’s checkout terminal, and sign up by giving information just like your phone number, name, Social Security number and email address. Affirm will perform a credit check, and if you are approved, show you loan offers. Select the one you want, set up automatic payments out of your bank and finish the purchase. The entire process takes a few minutes.
- Apply to have an Affirm loan by downloading the Affirm app or signing up through its website. If you’re approved, you’ll get a one-time-use charge card which you can use to pay for in a retailer, in both store or online. You will still have to pay interest on the loan.
NerdWallet recommends comparing?borrowing options to find what works well with you. To compare personal bank loan options, click the button below to see estimated rates from multiple lenders on NerdWallet.