Affirm review: Choose from several repayment plans, and you won't pay late fees

Affirm doesn't charge any fees, unlike some other buy now, pay later companies. Additionally, you may pay no interest on some long-term purchases.

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How Affirm works

Affirm is a buy now, pay later app that functions like a reverse layaway — you'll get the item upfront and pay for it over time. 

Affirm has multiple repayment options. You're able to split up the cost over four interest-free payments paid biweekly (with the first payment due at purchase), or over three, six, or 12 months with interest. In some cases, Affirm won't charge interest on those longer-term loans. Additionally, it may provide financing for longer than 12 months with certain purchases.

The APR on your longer-term loans will depend on your APR and where you're shopping; you'll get your exact terms when you check out. You may get 0% interest loans with some merchants, such as Peloton and Adidas. 

Affirm doesn't charge any fees to use its service — including late fees like some other buy now, pay later apps do. 

To create an account, sign up at a partner store, on Affirm's website, or in its app. You'll need to have your mobile phone number, email address, and the last four digits of your social security number available. 

Affirm will run a soft credit check to confirm your eligibilty for its service when you go to make a purchase for the first time or create an account. Soft credit checks do not impact your credit score and merely give a lender an overview of your credit history. 

Affirm says on its website that it will not report payments on certain types of loans to the credit reporting agency Experian. If you have a 0% interest "Pay in 4" loan or the lender only offered one, interest-free three-month payment option when you applied, it won't report on those types of loans. However, if you are late on payments, Affirm may report those late payments to Experian. 

You aren't guaranteed purchase approval from Affirm. You may be approved at some stores but not others, or may already have an Affirm loan and not be approved for another. Make note that each loan application is considered separately, and checking your eligibility doesn't ding your credit. 

Pros and cons of Affirm

Who is Affirm best for?

Affirm is best for borrowers who want longer-term financing options. As mentioned above, you may pay no interest on long-term purchases with retailers like Adidas and Peloton — a much better option than the double-digit interest rates you may be charged on a personal loan or credit card. You'll never pay interest with Affirm's Pay in 4 option. 

You're also protected if you're late on a payment, as Affirm doesn't charge any late fees. 

How Affirm compares to other buy now, pay later apps

Payment plans offered Split over four interest-free payments, six months with interest, or 12 months with interest; longer than 12 months of financing on certain purchases	Payment plans offered Split over four interest-free payments, pay in 30 days with no interest, make larger purchases from 6-24 months with interest	Payment plans offered Split over four interest-free payments
Late payment fee None	Late payment fee $7 if you miss a payment by 10 days or more	Late payment fee $8 if you miss a payment by 10 days or more
Affirm	Klarna	Afterpay buy now pay later

Affirm is the only one of these three lenders that doesn't charge any late fees. While none of the late fees Klarna or Afterpay charges are significant, they can add to the total cost of your borrowing and make your purchase more expensive than you initially bargained for.

All three companies offer a "Pay in 4" option, meaning you pay for your item over four installments, while Affirm and Klarna also offer long-term financing. Additionally, you can shop at thousands of retailers using each of these services, making them accessible for many types of purchases. 

How trustworthy is Affirm?

The Better Business Bureau, a nonprofit organization focused on consumer protection and trust, gives Affirm an A+ grade. Affirm is also a BBB-accredited company. The BBB determines its ratings by evaluating a company's responses to customer complaints, its honesty in advertising, and openness about business practices. 

You aren't guaranteed to have a positive relationship with Affirm just because it has a positive BBB score. Ask others who have used the company about their experience before buying something with Affirm.

Affirm hasn't been involved in any recent scandals.

Frequently asked questions

Is using Affirm a good idea?

Every person's situation is different, so using Affirm may be a good idea for some borrowers while being an unwise decision for others. The major benefit of Affirm is that you're able to spread out the cost of a purchase without paying interest. On the flip side, buy now, pay later apps can make it very easy for you to spend outside of your means and purchase items you can't fit into your budget. 

Does Affirm affect your credit score?

Affirm will run a soft credit check to confirm your eligibilty for its service when you go to make a purchase for the first time. Soft credit checks do not impact your credit score and merely give a lender an overview of your credit history. 

Affirm says on its website that it will not report payments on certain types of loans to Experian. If you have a 0% interest "Pay in 4" loan or the lender only offered one, interest-free three-month payment option when you applied, it won't report on those types of loans. However, if you are late on payments, Affirm may report those late payments to Experian. 

On other loans, Affirm lists the following as factors that might impact your credit score:

• Your payment history with Affirm
• How much credit you've used
• How long you've had credit
• Making late payments

Is Affirm safe?

Yes, Affirm is safe to use. The company has multiple processes in place to protect your personal data, including storing your data with data encryption. Access to your data is restricted to authorized personell and requires multi-factor authentication to get into. Simply put, there are multiple safeguards to protect your information and keep it from bad actors.  

How do buy now, pay later companies make money?

Merchants usually pay BNPL companies a percentage of the purchase amount or a flat fee, depending on the company. Some BNPL companies also make money off of late fees, but Affirm doesn't charge any fees. Additionally, with Affirm's long-term financing, it can make money off of interest payments.