Affirm Review: Buy Now Pay Later

Affirm is a buy now pay later (BNPL) company that allows you to pay for purchases over time, with an interest-free Pay in 4, and a monthly installment option.

It may be useful for those who want more options to make purchases without falling into credit card debt. 

After all, 48% of Americans are carrying a credit card balance, as of November 2024. So, is Affirm the right payment option for you? Here’s what you need to know before you decide. 

What Is Affirm?

Affirm is a buy now pay later fintech that offers an alternative to credit cards. It extends credit to shoppers who want to pay off big-ticket items in 4 interest-free biweekly installments (Pay in 4), or longer monthly installment loans. Affirm makes money through commissions from some retail partners and through interest charges on some of its financing. We found Affirm to be transparent about interest and fees, which are disclosed before you make the purchase. 

The interest rates it charges are slightly lower than rates charged by credit card companies, and the payoff period is one year or less. Compare this to potential years it would take to pay off large credit card bills if you only paid the monthly minimum.

What Does It Offer?

Affirm doesn’t offer credit cards or other traditional debt products. But it does provide a debit card with flexible payment arrangements, and longer term financing options. Here's a closer look at its key offerings: 

Flexible Payment Options At Check Out

When shopping in-store or online, you may see an option to pay with Affirm on purchases over $50 when checking out. If not, you can request a one-time use virtual card in the Affirm app. You can also use a physical Affirm card. 

Once you've settled on your payment method, you can choose your payment plan. While options may vary by merchant, purchases between $50 and $1000 or more can be spread over four, interest-free, biweekly payments. This is known as the Pay in 4 option.

For larger purchases of up to $5,000 or more, you may qualify for a monthly installment loan, with payments up to 60 months. Interest rates on monthly installment plans vary from 0% to 36%. 

Example: Pay in 4 versus Monthly Installment Option (taken from the Affirm website)

"At a purchase price of $800 you could pay a down payment of $160 today, followed by 12 monthly payments of $57.77 at 15% APR or 4 interest-free payments of $200 every 2 weeks."

You can manage your payments in the Affirm app or online, and set up AutoPay so you don’t miss a payment. But if you do, you’ll never pay any fees.

Interest-free Financing 

If you’re seeking interest-free financing, Affirm may interest you. The company’s three-month payment plan often carries a 0% interest rate. If you can afford to pay off the purchase in three months, you may not have to pay a cent in interest or fees.

Not everyone qualifies for interest-free financing, as you need to have a reliable source of income and decent credit. If you qualify, you can make interest-free payments on your new refrigerator, couch, or computer.

Clear Terms for Payment Plans

If you don’t qualify for interest-free financing, you have the option of choosing Affirm payment plans. You will pay interest on these, but the plans will allow you to pay off your new purchase in 60 months or less. The current rates (between 0%-36%) are modestly lower than typical credit card rates, which are nearly 21%.

Even though making payments can reserve liquid cash in your savings, it will eat into your future cash flow. 

Payments for these plans will typically be reported to the credit bureaus, so it’s important to make payments on time, as it will affect your credit history.

No Late Fees

Affirm doesn’t charge late fees, annual fees, or any other form of fee. It does charge interest and failing to make a payment will affect your credit score and your ability to get credit from Affirm and other lenders.

Debit+ Card with Purchase Splitting

Affirm offers a debit Visa card which gives customers the option to use a physical card for in-store purchases. This means that you can pay with Affirm in-store or online wherever Visa is accepted, keeping in mind that payment plan options may vary between merchants. 

If you make an eligible purchase of $50 or more with you Affirm card in-store, you'll be given 24 hours to decide on a payment plan. There is no annual fee for the Affirm debit card, and purchase splitting is not reported to any of the major credit bureaus, so it does not affect your credit score. 

Are There Any Fees?

Affirm doesn’t charge fees, but you will pay interest on most of its payment plans. The interest rates range from 0% to 36%. The rate you’ll pay depends on your credit history, your income, and other factors. Most of its three-month plans are interest-free.

How Do I Contact Affirm? 

Affirm’s Customer Care Center is located at 30 Isabella Street, Floor 4, Pittsburgh, PA 15212.

You can also email the Customer Care team at [email protected]. The company website has a more detailed contact form for people seeking specific details.

How Does Affirm Compare?

Affirm is one of the best-known companies when it comes to buy-now-pay-later platforms. It’s similar to competitors like Perpay and Zebit, which cater more toward users who are trying to rebuild low credit scores. Both platforms offer their own e-commerce marketplaces and give users access to credit to make purchases.

They offer affordable repayment plans which can help users build their credit scores. 

Although Affirm’s transparency is refreshing compared to a credit card company’s fine print, their interest rates aren’t that great. This is especially true since credit card issuers have rolled out their own form of BNPL, known as an installment payment plan. They allow you to split up payments in monthly installments. 

The catch is that you’d pay interest on it, but some installment plans have 0% or low interest rates—this is because credit card companies want you to spend. With more credit cards offering this installment loan option, it’s hard to see value in a product like Affirm, unless of course, your credit card doesn’t have this option. 

Overall, a credit card that offers installment payment plans with a lower interest rate makes more sense than choosing Affirm. 

How Do I Open An Account?

You can create an Affirm account through Affirm.com, or any of its online partner stores. To open an account, you must be at least 18 years old, have a Social Security Number, and a valid U.S.-based cell phone number. 

Each time you apply for a payment plan through Affirm, you need to qualify for the plan. This depends on your income, your credit history, and your history with Affirm.

Is It Safe And Secure?

Affirm is a legit BNPL company and is safe to deal with. Note that it is not a bank, but a financial technology company. It's debit card is issued through its banking partner, Evolve Bank & Trust. FDIC coverage is also available through Evolve.

All personal data is encrypted and the Affirm team has security training to help prevent data breaches. While any data that is online is at risk, Affirm has protocols and technologies designed to minimize lost or stolen data. 

Is It Worth It?

If you are looking for flexible repayment options and would rather not use a credit card, Affirm is definitely worth considering. We like the flexibility of being able to use a virtual or physical debit card, and the fact that Affirm is very transparent about its pricing (fees and interest).

It's Pay in 4 option offers interest-free payments, and you can finance larger purchases over a longer period, though you will incur interest. For that reason, we always recommend that you take extreme caution before using any BNPL platform. Remember that taking on a payment plan with Affirm is very similar to taking on credit card debt. It’s typically best to avoid debt if you can. 

If you have cash flow challenges, consider 0% introductory rate credit cards before taking on payment plans with Affirm. 

Affirm plans may have end dates, but credit cards offer more flexibility. Whether you choose Affirm or a credit card, it’s still debt, so it makes sense to find the best interest rate.

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