The Credit & Debt Purchase Now, Pay Later

Affirm Personal Loans Review

Affirm offers instant financing for retail purchases that offer a range of APRs
By Kate Dore
Updated March 07, 2022
Facts checked by Katrina Munichiello

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Investopedia's Rating 3.4
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Affirm provides instant financing for retail purchases. Affirm has thousands customers, both in person as well as online, which allow you to buy immediately and then pay later. You may apply at the time of sale with only one soft credit inquiry but your annual percentage rate (APR) might be higher than what you expected. This review will cover all you should learn regarding Affirm and how you can decide whether it's the right choice for you.

Affirm provides APRs that range from 30 and 0% according to your credit history. It is possible to borrow anything from $0 to $17,500, but the amount may vary by retailer. Affirm provides personal loan terms for three or six months, but depending on the retailer and the size that the transaction is, terms could be as short as two weeks up to three months, or up to 36 months. No credit scores are required required to be eligible for an Affirm personal loan however, the company will consider the current economic climate and your credit score as well as your previous experiences with Affirm.

Product Specifications
Pros and Pros and
Fees

APR Range from 0 percent to 30%
The loan amount ranges from $0 to $17.500.
The loan terms range from 1 to 36 months
Recommended Minimum Credit Score , no less than

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Overall rating 3.4
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Table of Contents

Pros Explained
Pros and Cons Explained
Types of Loans
Time to Funding
Features
Apply
Refinance
Methodology

Pros Explained

Prequalify with soft credit inquiry - You may prequalify on the app or at one of our partner retailers without hurting your credit score.
Quick loan - You could receive instant approval.
No fees There aren't any costs for service, late payments charges, or prepayment penalties.
Could help improve your credit score - Affirm might be reported to Experian and your track record of paying on time could boost your score on credit. Just remember that late payments could be recorded.

Cons Explained

Maximum APR of 30% - Depending on your creditworthiness your APR could be higher than the average APR for a credit card, which was 14.51 percent at the time of November 2021.1
Not everywhere available - Affirm isn't available for all retail purchases.
No refunds for interest paid on returns . If you decide to return any of the items you purchased Affirm does not offer a refund on the interest you have already paid on the amount you borrowed to buy it.
Possible down payment - You might not be eligible to purchase the full amount of the purchase and Affirm might require the payment of a down.

Types of Personal Loans Offered by Affirm

Affirm provides two individual loan options. You can use Affirm to get money to finance purchases through Affirm's partner stores. If the order is under $250, you could be able to access AffirmGo that offers three-month payments at APR of 0.
The time to receive funds

You may apply for an individual loan by contacting Affirm partners and receive immediate approval.
Affirm Personal Loan Features

Loan transparency - Affirm gives complete personal loan details up front with no hidden costs later.
Many retail partners - Affirm has formed partnerships with more than 200 retail businesses to offer instant financing in the store or on the internet.
Virtual card option - Following you have received your loan decision, you can transfer the loan funds onto the Affirm virtual card for only one time usage online or in person.
App for mobiles - Users are able to manage payments on the go through Affirm's mobile app.

Request an Affirmation Personal Loan

Before making an application in for an Affirm personal loan you can apply for prequalification through a retail partner or via Affirm's mobile application. You can complete either option with a soft credit inquiry that won't hurt your credit score. Prequalification does not guarantee approval, but it does allow you to estimate the amount you could be able to borrow.

There are three ways of applying for the Affirm personal loan via the partner store, using Affirm's mobile application, or online through Affirm.com. Each of these options offers fast application process with instant approval and the ability to fund.
Partner Store

Shop either online or in-person and choose Affirm at checkout.
Enter your mobile phone number.
Create your own Affirm accounts (first chance only).
Enter the verification code that you received by text.
Get instant approval or denial.

Affirm Mobile App

Download Affirm's mobile app.
Enter your mobile phone number.
Make an Affirm accounts (first attempt only).
Enter the verification code you received via text message.
Choose a store and loan amount.
Get instant approval or denial.

Affirm.com

Create an account with Affirm or login.
Enter the verification code that you received by text.
Choose a store as well as a loan amount.
Get instant approval or denial.

Can I refinance a personal loan with a confirmation?

No. Affirm does not provide the opportunity of refinancing an existing loan to get a better rate.
Verdict

Affirm may be a convenient option for purchases that are larger. It's worth considering for those with less-than-perfect credit or have a limited history of credit subject to the APR you are eligible. Fixed payments are available with no hidden costs This can be appealing however with an maximum APR of 30 percent, Affirm may be one of the more costly methods to finance a purchase.

In the event that your credit is good up to exceptional, then it might be less expensive to apply for a 0% or low interest credit card. In either case, make sure you can afford the cost of the card. If not, you could be in danger of late payments--or worse, defaulting on what you borrowed. Although it's not easy, the safest option may be to pay for big purchases in cash.
Methodology

Investopedia is dedicated to offering consumers honest and comprehensive reviews of private loan lenders. We have gathered over 25 data points across more than 50 lenders, including interest rates and charges, loan amounts, and repayment terms to ensure that our information helps users make the right choice of borrowing for their specific needs.
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Article Sources
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