Affirm is a payment company that provides loan services and consumer financing options. The company offers online lending, card-to-card payments, and in-store transactions. But how safe is this lender app? Is it worth trying?
How Affirm Works
You can either select “Yes, I want to use my credit card for this purchase” at checkout online or you can use an Affirm Visa virtual card which is accepted by almost all stores that take Visa. To be eligible for a loan without hurting your credit score, the company prequalifies individuals before giving out loans.
The Affirm virtual card is a way to use the service when there are not any brick-and-mortar stores offering it. You can request one on the website or app, and have funds loaded onto your virtual card for one-time use. It’s linked with Apple Pay and Google Pay so you can also pay in those places where Visa is accepted using your secure personal information.
The process takes less than two minutes and provides users with real-time decisions about whether their loan has been approved and how much they will have access to spend on what they need in order to save up a large enough cash deposit as well as gain interest rates higher than those offered by banks in certain areas.
If you are approved, you can then choose to repay your loan in three, six, or twelve months. However, your terms could be shorter or longer depending on the store and what’s happening with your credit score at that time. When it comes down to a specific date for paying back the loan (every 30 days), Affirm pledges never to charge you more than that amount of interest without informing their customers beforehand.
Is Affirm Safe to Use?
Yes, Affirm is safe to use.
Affirm knows how to protect personal information and looks out for its users. You’ll need a cellphone number when setting up an account, but once you do this, there is 2-factor authentication as well so no one else can use your account.
If you’re having problems with purchases that are not resolved by the merchant themselves in 60 days or less, Affirm will open a dispute on their behalf if they find it necessary after investigating the purchase within those last 60 days.
Does Using Affirm Affect Your Credit Score?
The short answer is no. The company claims that it has no impact on your credit score unless you make partial or late payments.
This is important because if it does, you will also be giving up the option to qualify for other loans and lines of credit that rely on your credit score.
If you are given a loan by Experian, your payment history will be reported to them. If you have missed payments on one of their loans, the lender may report the instance to Affirm and damage your credit score.
When You Should Use Affirm
If you don’t have enough money to pay for certain expenses, this service may be able to help. If you’re dead-set on financing a purchase, Affirm could help you save money in interest and fees.