Credit & Debt Pay Now Pay Later

Affirm Personal Loans Review

Affirm gives immediate financing for purchases, offering a variety of APRs
By Kate Dore
Updated March 07, 2022
Facts checked by Katrina Munichiello

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The Rating of Investopedia is 3.4
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Affirm provides instant credit for purchases at the store. Affirm has thousands of customers, both in person and online, who let you buy today and pay later. You may apply at the point of sale using only a soft credit inquiry, but your annual percentage rate (APR) might be higher than what you expected. This review will cover all you need to know about Affirm and how you can decide whether it's the best option for you.

Affirm provides APRs ranging from 0% to 30% depending on your credit history. You may borrow anywhere from $0 to $17,500, but the amount can differ by store. Affirm provides personal loan terms for three months, six or twelve months. Depending on the retailer and amount that the transaction is, terms could be as short as 2 weeks or 3 months, or as long as 36 months. No credit scores are required to qualify in the event of an Affirm personal loan however, the company takes into account the current economic situation, your credit score, and your past experience with Affirm.

Product Specifications
Pros and Cons
Fees

APR range from 0% to 30%
The loan amount ranges from $0 to $17.500.
Loan Terms One to six months
Minimum Credit Score Recommendation no minimum

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Overall rating 3.4
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Table of Contents

Pros Explained
Pros and Cons Explained
The types of loans
Time to Funding
Features
Apply
Refinance
Methodology

Pros Explained

Prequalify using a soft credit inquiry - You can apply via the app or one of our partner retailers without hurting your credit score.
Fast financing - You can receive instant approval.
No fees No service fees, late payment fees, or prepayment penalties.
Can help improve credit score - Affirm could be reported to Experian, and your history of on-time payments may improve the credit rating of your. Just remember that late payments could be recorded.

Pros and Cons of the Book

Max APR: 30% - Depending on your creditworthiness, your APR may be higher than the average APR on a credit card, which was 14.51 percent as of November 2021.1
Not available everywhere - Affirm isn't offered for all retail purchases.
No refunds for interest paid on returns . If you decide to return one of your purchases, Affirm will not give you a reimbursement on the interest you've already paid on the amount you borrowed to purchase it.
Potential down payment - You might not be eligible to purchase the entire amount of your purchase and Affirm may require a down payment.

Types of Personal Loans Offered by Affirm

Affirm offers two private loan options. You can utilize Affirm to get money to finance purchases through partners stores. If your order is under $250, you might have access to AffirmGo, which offers three monthly payments with a 0% APR.
The time to receive funds

You may apply for an individual loan via Affirm partners and receive immediate approval.
Affirm Personal Credit Features

Affirm offers full personal loan details upfront without any hidden charges later.
Many retail partners - Affirm has partnered with more than 200 retail businesses to offer instant credit in the store or online.
Virtual card option - Following the loan approval, you are able to transfer the funds into an Affirm virtual card that you can use for one-time use online and in person.
Mobile app - You are able to manage payments on the go with Affirm's mobile application.

Request an Affirmation of Personal Loan

Prior to you apply to get an Affirm personal loan You can prequalify via a retailer partner or by using Affirm's mobile application. It is possible to complete either with a soft credit inquiry that won't harm your score on credit. Prequalification doesn't guarantee approval, but you can determine how much you might be eligible to borrow.

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

You can shop either online or in-person and choose Affirm at payment page.
Enter your mobile phone number.
Set up your own Affirm account (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.
Set up your own Affirm Account (first time only).
Enter the verification number you received by text.
Pick a retailer with a loan amount.
Get instant approval or denial.

Affirm.com

Create an Affirm account and login.
Enter the verification code that you received by text.
Pick a retailer and loan amount.
Get instant approval or denial.

Can I refinance a personal Loan Using Affirm?

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

Affirm may be a convenient option for bigger purchases. It's worth considering if you have less-than-perfect credit or limited credit history subject to the APR for which you qualify. Fixed payments are available with no hidden costs that can be appealing however, with a maximum APR of 30% Affirm could be one of the most expensive options to finance a purchase.

If you have a credit rating of good or excellent, it could be more affordable to get the 0% or low interest credit card. Either way, you should make sure you can afford the payments. If not, you could be in danger of late payments--or worse, defaulting on what you borrowed. Although it's not easy to do, the most secure option could be paying for large purchases in cash.
Methodology

Investopedia is committed to providing customers with impartial and comprehensive reviews of private loan lenders. We gathered more than 25 data points on more than 50 lenders--including interest rates, charges, loan amounts, and repayment terms to ensure that our information helps customers make the right choice of borrowing for their specific needs.
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