Affirm is one of several online services that allow customers to make purchases without using credit cards. These companies collaborate with a variety of merchants, and each allows the consumer to make purchases without relying on their credit. Affirm does not report all loans to credit bureaus, unlike many other credit-based services. This means that Affirm users may have a lower credit score than those who use traditional credit cards.
Borrowers must have a valid U.S. mobile phone number and an email address in order to use Affirm. In addition, they must be at least 18 years old. Affirm will also verify the borrower’s identity and credit history. If they discover incorrect information, they may request that the borrower provide additional information. Affirm may approve the loan if the borrower’s information is verified.
Applicants must also provide their full name, date of birth, and a valid United States social security number. This data is then compared to a list of credit bureaus, including Equifax and Experian. If Affirm cannot find all of the necessary information, they may reject the borrower. Applicants are also given the option of receiving an email or text message confirming loan approval.
The interest rate charged by Affirm varies depending on the merchant. Some merchants may provide 0% APR for a limited time. Affirm, on the other hand, does not reveal the exact rates that they charge. Affirm also does not reveal the fees it charges. These fees are determined by the type of goods purchased and the volume of sales experienced by the merchant. These fees are levied to compensate Affirm for taking on the risk of lending the money. These charges are usually between 2% and 4%.
While Affirm does not report all of its loans to credit bureaus, it does report any delinquent payments. Applicants with a poor payment history are more likely to have a low credit score.
Affirm allows customers to pay using the Affirm app. This allows you to spread out the cost of a purchase without paying interest. Affirm accepts numerous payment methods, including ACH transfers, debit cards, and checks. Aside from the virtual card, Affirm also provides an FDIC-insured savings account with no minimum balance requirement. Depending on the consumer’s credit score and creditworthiness, Affirm’s rates can range from 0% to 30% APR.
Any late payments received by Affirm will be reported to credit bureaus, including Experian. It will also report any missed payments, but not any loans on which it does not make an initial decision. In addition to a borrower’s age, income, and credit history, Affirm reports a variety of other data points in its loan decisions.
Customers are promised by Affirm that they will be able to pay off their loans early. This is possible thanks to Affirm’s Autopay feature. Customers can use this feature to set up automatic monthly payments. Customers can use this feature to pay off their loans before interest begins to accrue. Affirm may also initiate a dispute on a customer’s behalf. Affirm will also give both the consumer and the merchant fifteen days to make their case.