Pros Explained
- Prequalify with soft credit inquiry: You may prequalify in the mobile app or through a partner retailer without hurting your credit score.
- Quick financing: You may get instant approval.
- No fees: There are no service fees, late payment fees, or prepayment penalties.
- May help improve credit score: Affirm may report to Experian, and your history of on-time payments may improve your credit score.Just remember that late payments may also be reported.
Cons Explained
- Maximum APR of 36%: Depending on your creditworthiness, your APR may be higher than the average APR for a credit card, which was 20.09% as of February 2023.
- Not available everywhere: Affirm isn’t available for all retail purchases.
- No refunds for interest paid on returns: If you return one of your purchases, Affirm doesn’t offer a refund on the interest you have already paid on the money you borrowed to buy it.
- Possible down payment: You may not qualify for the full amount of your purchase, and Affirm may require a down payment.
Types of Personal Loans Offered by Affirm
Affirm offers two personal loan options. You may use Affirm to borrow money for purchases through partner stores.
Time to Receive Funds
You may apply for a personal loan through Affirm partners and get instant approval.
Affirm Personal Loan Features
- Loan transparency: Affirm provides complete personal loan details upfront with no hidden fees later.
- Thousands of retail partners: Affirm has partnered with more than 235,000 merchants for instant financing in store or online.
- Virtual card option: After your loan approval, you may transfer the money to an Affirm virtual card for one-time use online or in person.
- Mobile app: You may manage payments on the go through Affirm’s mobile app.
Apply for an Affirm Personal Loan
Before applying for an Affirm personal loan, you may prequalify through a retail partner or through Affirm’s mobile app. You can complete either option with a soft credit inquiry, which won’t hurt your credit score. Prequalification doesn’t guarantee approval, but you can see how much you may be able to borrow.
There are three ways to apply for an Affirm personal loan: through a partner store, via Affirm’s mobile app, or online at Affirm.com. All three options offer a fast application process, instant approval, and funding.
Partner Store
- Shop online or in person and select Affirm at the checkout.
- Enter your mobile phone number.
- Create an Affirm account (first time only).
- Enter the verification code you received via text.
- Get instant approval or denial.
Affirm Mobile App
- Download Affirm’s mobile app.
- Enter your mobile phone number.
- Create an Affirm account (first time only).
- Enter the verification code you received via text.
- Pick a retailer and loan amount.
- Get instant approval or denial.
Affirm.com
- Create an Affirm account or sign in.
- Enter the verification code you received via text.
- Pick a retailer and loan amount.
- Get instant approval or denial.
Refinancing a Personal Loan With Affirm
Affirm doesn’t offer the ability to refinance an existing loan for a better rate.
Final Verdict
Affirm may be a convenient option for bigger purchases. It could be worth considering if you have less-than-perfect credit or limited credit history, depending on the APR for which you qualify. There are fixed payments and no hidden fees, which can be attractive, but with a maximum APR of 36%, Affirm may be one of the more expensive ways to finance a purchase, compared to competitors.
If your credit score is good to excellent, it could be cheaper to apply for a 0% or low-interest credit card. Either way, you should make sure you can afford the payments. Otherwise, you may risk late payments—or worse, defaulting on what you borrowed. While it can be difficult, the safest option may be paying for large purchases in cash.
Frequently Asked Questions
Is It Hard to Get a Loan With Affirm?
Since Affirm allows you to prequalify for a loan, you can easily check which rates, amounts, and terms you can qualify for without affecting your credit score. Getting a loan with Affirm is a pretty straightforward process, just make sure you meet all the eligibility criteria first.
Does Getting a Loan With Affirm Hurt Your Credit?
Seeing if you prequalify and creating an account with Affirm won't affect your credit. However, Affirm reports some loans to Experian, so your credit score might be affected by your payment history with Affirm, how much credit you've used, how long you’ve had credit, and any late payments. The "Credit Reports and Monitoring" section of your loan agreement will give you more information.
Can Affirm Loans Be Paid Off Early?
Yes, you can make early payments on your Affirm loan. There are no penalties or fees, and you’ll save on any interest that hasn’t accrued yet.
How Much Will Affirm Let You Borrow?
You can borrow up to $17,500 from Affirm, though eligibility may vary.
What Is Needed to Qualify for Affirm?
To qualify for a loan with Affirm, you need to be a U.S. resident that's at least 18 years old and has a Social Security number and a U.S.-registered phone number that receives texts. While there's no formal credit score minimum, your credit score, credit history, and history with Affirm will be considered.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. We collected over 25 data points across more than 50 lenders—including interest rates, fees, loan amounts, and repayment terms—to ensure that our content helps users make the right borrowing decision for their needs.
