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Affirm Personal Loans Review December 2024

Affirm (Buy Now, Pay Later), is one of the most transparent lenders on the market, but the lending structure may not be for everyone.

Author
By Patrick Ward

Written by

Patrick Ward

Freelance writer, Credible

Patrick Ward is a personal finance writer with more than nine years of experience focusing on mortgages and real estate investing.

Edited by Meredith Mangan

Written by

Meredith Mangan

Senior editor

Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.

Updated November 26, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

Featured

Affirm offers relatively small personal loans exclusively for retail purchases and services with no origination fee and no credit impact when you apply or choose a pay-in-4 plan. Once you apply for an Affirm loan online, you'll receive a decision right away. If approved, your order will be processed immediately and the loan will be funded.

Affirm interest rates and loan details
Fixed rates
0% to 36% APR
Loan amounts
$50 to $20,000
Loan terms
6 weeks to 60 months
Min. credit score
Check with lender
Time to fund
Immediate
Fees
None
Residency
Must be a resident of the U.S. or its territories, or Canada
Loan use
Retail purchases only
Key benefits
Instant funding
Finance purchases without a credit card
Interest-free financing
No credit score impact to apply
Pay-in-4 plans won’t impact credit
Best if
You don’t have access to a credit card
You can pay off the loan in 6 weeks

Who are Affirm personal loans best for?

Best for short-term, interest-free financing

Affirm's motto is "Buy Now, Pay Later" or BNPL. And some Affirm BNPL plans are interest-free - if you can pay off the purchase within six weeks. The process is similar to layaway, but the upsides are:

  • You get whatever product you're purchasing right away
  • You get longer interest-free financing than you would with a credit card's grace period

You have a couple of ways to use Affirm's personal loans. If you choose the pay-in-4 option, you don't have to worry about interest rates (as long as you make payments on time). You'll make payments every two weeks for a total of six weeks if the first payment is due at purchase. In some cases, you may not have to make a down payment when you purchase, but will commence payments two weeks after purchase.

If you choose the monthly installment loan option, you have to make payments only once a month and could qualify for a repayment term as long as five years. But your interest rate could be as high as 36%, which is quite high for a personal loan.

Great for retail purchases

BNPL was designed to make buying online and, now, in-store easier. While you can't access cash with an Affirm loan, Affirm BNPL is offered and accepted widely via the app or at checkout. Or, you might qualify for an Affirm card that you can use to request payment plans before and after checkout on eligible purchases.

Pros and cons

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Pros

  • Instant funding
  • Finance purchases without a credit card
  • Interest-free financing
  • No credit score impact to apply
  • Pay-in-4 plans won’t impact credit
  • Can be used at thousands of stores
  • No fees
  • Fast disbursement
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Cons

  • Short term loans
  • Potential for a high interest rate
  • Down payment may be required

Pros

  • Instant funding: Whether in-store or online, once approved, you can start making purchases.
  • Finance purchases without a credit card: If you don't have or don't want a credit card, BNPL can be a solid and interest-free alternative.
  • Interest-free financing: Pay-in-4 plans charge no fees or interest.
  • No credit score impact to apply: You can apply for short- or longer-term funding without any impact to your credit score.
  • Pay-in-4 plans won't impact credit: Unlike a longer-term loan, Affirm does not conduct a hard credit pull if you choose this option.
  • Can be used at thousands of stores: You'd be hard pressed to find a retailer that doesn't accept Affirm.
  • No fees: Affirm doesn't charge late fees, annual fees, loan origination fees, or early repayment fees.
  • Fast disbursement: Affirm is a same day loan provider. You should know very quickly if you're approved to make a large purchase.

Cons

  • Short loan terms: Affirm is generally a short term loan provider. Most of its loan lengths are three, six, and 12 months long. Loans may be available up to 60 months, but there is no guarantee every borrower will get this option and such terms may be reserved for larger loan amounts.
  • Potential for a high interest rate: It depends on your credit score and credit profile, but Affirm may charge an APR up to 36%.
  • Down payment may be required: Whether you choose the pay-in-4 option or the monthly installment option, you may be required to make a down payment at checkout.

How to qualify for a Affirm personal loan

To qualify, Affirm will consider your income and credit history, though it doesn't run a hard credit check when you apply (only when you accept a longer-term loan option). You'll also need to have a valid Social Security number, be a resident of the U.S., a U.S. territory, or Canada, have a phone that can receive SMS text messages, and be at least 18 years old.

Credit score and financial history

Affirm doesn't list a specific credit score on its eligibility requirements page. This doesn't mean, however, that it will accept any credit score. In order for your application to be as strong as possible, make sure your accounts are current (meaning all payments are up to date) and that you have a low credit utilization ratio. The ideal credit utilization ratio is zero, but less than 30% is often acceptable.

Income and employment

As with credit scores, Affirm doesn't disclose specific income requirements online, except that you may need to verify your income to be approved.

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Tip

No matter which lender you work with, ensure you have enough income to comfortably make payments on your loan and other monthly obligations.

Affirm personal loan purposes

Affirm personal loans are intended to help buyers make large purchases with retailers and merchants.

Affirm personal loan fees and penalties

Affirm doesn't charge any fees - no loan origination fees, late fees, or early payment penalties.

How Affirm compares to other lenders

Affirm's lack of fees make it a strong competitor if you need to purchase something within its vast network of retailers. You might consider other BNPL apps like Klarna and Afterpay, but both come up short relative to Affirm. For instance, both charge fees for late payments and offer shorter maximum repayment terms.

If you're looking to repay over months or years, compare any BNPL provider terms with a traditional personal loan. It's easy to prequalify without a hit to your credit score and you could get a lower rate. (Applying for a personal loan may ding your credit temporarily, depending on the lender.)

How to contact Affirm

If you have any questions, Affirm has a dedicated help center page for its customers. Just choose a category that best reflects your question and go from there.

You can also call 855-423-3729 between the hours of 8 a.m. and 11 p.m. ET seven days a week, chat with a representative online between 7 a.m. and 7:30 p.m. ET Monday-Friday, or email [email protected].

FAQ

Is Affirm reputable?

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Is it hard to get a loan through Affirm?

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How long does it take to get a personal loan from Affirm?

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What fees does Affirm charge?

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Meet the expert:
Patrick Ward

Patrick Ward is a personal finance writer with more than nine years of experience focusing on mortgages and real estate investing.