What is Affirm? How does buy now pay later work? (2024)

FAQs

What is the downside of Affirm? ›

If you're delinquent on your payments or default on your loan, Affirm could deny you a loan in the future and that information may be reported to credit bureaus which could result in a decrease to your credit score.

Just download the Affirm app (or sign in at affirm.com), tell us where you're shopping, and we'll give you a one-time-use virtual card you can use to complete your purchase online or in stores. Then, pay us back over time.

Creating an Affirm account and checking your purchasing power will not affect your credit score. At this time, only some Affirm loan types are eligible to be reported to Experian. These things won't affect your credit score: Creating an Affirm account.

Your first monthly payment is usually due one month after we process your purchase. Each following payment will be due one month later, on the same day of the month. Your loan may show as processing until the merchant is ready to ship your item. To learn how to view your payment schedule, see here.

Loan limits vary by merchant and will depend on your credit record and payment history with Affirm. The lender has no minimum credit score to qualify for a loan, and checking whether you prequalify will not damage your credit score.

Early payments

There are no penalties or fees for paying early. You may even save money on interest by choosing to pay off your loan early.

You may not always qualify for the full amount of your purchase. When this happens, we'll ask you to make a down payment with your debit card and we'll process this payment right after you confirm your loan.

The Affirm Card is a debit card. If you have purchasing power, you can request payment plans in the app before checkout, and after checkout if you pay in full first for an eligible purchase in stores or online. You can take advantage of the full functionality of the Affirm Card by linking your bank account.

We don't charge integration fees, annual fees, or monthly fees.

Although Affirm does not charge late fees, if you make a partial payment or have a late payment, it could affect your credit score or your ability to get approved for another loan. Afterpay does not charge interest or fees as long as you make all of your scheduled pay-in-four loan payments.

What is the Affirm limit? ›

Affirm will finance up to $20,000 USD for qualified applicants, and the customer would then be responsible for the remaining $10,000 USD with a downpayment. For any purchase over $30,000, Affirm won't be available as a payment option.

Affirm may sometimes need more information about your finances and your ability to repay in order to make a credit decision. Your income gives Affirm additional insight into your ability to repay.

Customer checkout flow overview

Customer selects Affirm at checkout on the merchant site. Their redirected to an Affirm modal or pop-up. Enters their phone number to receive a text with a pin to create or sign in to their account.

Our loans usually last 3, 6, or 12 months, and you get to pick from these options when you apply. Below are a few exceptions to the term length options. For really large loans, you might get an option for up to 48 months. For much smaller loans, you may get 1–3 months, without the option to pay over a longer period.

You may not always qualify for the full amount of your purchase. When this happens, we'll ask you to make a down payment with your debit card and we'll process this payment right after you confirm your loan.

It's all about you

We tell you up front the total amount you'll pay. That number will never go up. You choose the payment schedule that works for you.

Affirm never charges late fees, but if you've stopped making payments for more than 120 days, we may charge off your loan. Once a loan has been charged off, it may be sent to a third-party collections agency at any time.

You can't use loans through Affirm for:

Illegal items and activities. Weapons, including firearms, ammunition, certain firearm parts or accessories, and certain knives or other weapons regulated under applicable law. Narcotics and drug paraphernalia. Currency, including cryptocurrency.