Affirm Personal Loans: Having seen the countless financial institution we have all over the world, one would be right to say he or she is confused when it comes to choosing the right financial company, but that is why we made this article, to give you all the information you need Affirm personal loans
In this article:
- What You Need to Know About Affirm Personal Loans
- When Is Affirm The Best Option For You
- Final Word: Is an Affirm Personal Loan Right for You?
Affirm is part of a wave of companies that offer “point-of-sale” financing, which means you will run across it when you are ready to buy something from a retailer.
Affirm offers financing for Walmart, furniture store Wayfair, mattress store Casper, travel site Expedia, and more than 2,000 other retailers.
What You Need to Know About Affirm Personal Loans
1. What are the loan amounts?
But while Affirm is great for small purchases, it can be used for large purchases, too. Affirm offers loans up to $17,500. Of course, this doesn’t mean that everyone will qualify for the maximum loan amount.
The company’s underwriting model may determine that you’re overextended and can’t afford the payment on a loan you’ve requested.
If you’re unable to qualify for the full amount, Affirm may require a deposit with a credit or debit card (similar to a down payment) before approving your loan.
2. What are the loan terms?
Affirm offers flexible loan terms based on the amount of the loan.
Many loans have a term of:
- 3 months,
- 6 months, or
- 12 months.
Typically, some smaller loans must be repaid within three months. Larger loans may receive a term of up to 12 months, and in some cases, up to 48 months.
Always keep in mind; you’re always free to pay off your full loan balance at any time—without penalty.
Also, you don’t have to pay off a prior Affirm loan before applying for a new one. There’s no limit to the number of loans you can have at one time.
Just know that if you’ve recently applied for a loan, Affirm may take a closer look at your credit history to determine whether you’re a candidate for additional financing.
3. What are the minimum income and credit requirements?
Affirm’s website doesn’t mention anything about minimum credit scores, minimum income, or minimum debt-to-income ratio requirements for approval.
However, the company does conduct a soft credit pull on applicants before issuing an approval. They use this information to determine whether or not you’re eligible for a particular loan amount.
So while the company might not have minimum credit score requirements, it does appear to evaluate an applicant’s payment history, the length of their credit history, and the amount of debt they have to assess eligibility.
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4. What are the Requirements for a Loan?
The minimum age for an Affirm personal loan is 18 years old or 19 years old in the state of Alabama. You’re also required to provide your Social Security number.
You can use an Affirm loan in the U.S and in all U.S territories. The only states that don’t allow Affirm loans are Iowa and West Virginia.
5. What Feature Sets Affirm Loans Apart?
One unique feature that sets Affirm apart from the competition is that applying for a loan doesn’t affect your credit score.
Affirm only conducts a real-time soft credit check when determining eligibility, and as a result, these credit pulls will not appear on your credit report.
This is unlike a hard credit pull, which does appear on credit reports. Each hard credit pull can reduce an applicant’s credit score by two to three points.
Soft credit checks are significant because you’re able to apply for multiple Affirm loans without racking up too many credit inquiries. But while applying for a loan doesn’t hurt your credit, getting an Affirm loan might
The company reports some loans to the credit bureau Experian, although the loan may not appear on your credit report until 30 to 60 days.
If you make on-time payments, your good payment history with Affirm will help boost your score. But if you default on an Affirm personal loan, bad payment history can hurt your score.
6. How to Get Approved for an Affirm Personal Loan?
You can get approved for a loan with Affirm in minutes.
- To start, select Affirm as your method of payment at checkout.
- Next, enter your mobile telephone number, your full legal name, email address, birth date, and the last four digits of your Social Security number to verify your identity.
- Submit this information to create an account and instantly receive a loan decision and approval amount.
7. How to Apply for an Affirm Loan
There are two ways to get an Affirm loan:
- Select Affirm at checkout at a partnering retailer, either online or using the app at a store’s checkout terminal, and sign up by providing information such as your phone number, name, Social Security number, and email address. Affirm will perform a credit check, and if you are approved, show your loan offers. Select the one you want, set up automatic payments from your bank, and complete the purchase. The whole process takes a few minutes.
- Apply for an Affirm loan by downloading the Affirm app or signing up through its website. If you’re approved, you’ll receive a one-time-use credit card that you can use to pay at a retailer, either in-store or online. You will still have to pay interest on the loan.
When is Affirm the Best Option for You
Perhaps you want t o make an immediate purchase but don’t have money saved or a credit card. Affirm gives borrowers short-term personal loans for one-time purchases such as a mattress, furniture, or plane tickets.
Have a credit card but your credit limit is lower than the cost of the purchase. Taking an Affirm loan is better than maxing out your credit card, which could lower your credit score.
If you’re new to credit or don’t have a high credit score, you may still qualify for an Affirm loan, but your rate could be at the higher end.
Is an Affirm Personal Loan Right for You?
Affirm is a convenient way to get one-time financing for purchases. The process is quicker than applying for a bank loan, which can take days to process and often results in a hard credit pull.
This loan option is great when you need money right away and don’t have access to a credit card or a savings account.
It’s also useful for giving your credit score a boost since Affirm may report your payment history to Experian. Plus, you’re getting a loan for the exact amount you need and nothing more, which reduces the risk of over-borrowing.