Business Insider's personal finance team compared Affirm to the best buy now, pay later loans and found it to be an industry leader.
Affirm is a great option for shoppers who want a multitude of repayment options, including interest-free financing on certain long-term purchases. You also won't pay any fees.
However, the APR range on Affirm loans can be high depending on the repayment plan. Term lengths are subject to varying APRs, which could make it a more expensive choice for longer financing periods.
Affirm Pros and Cons
Affirm Pros
- Easy application process. Signing up online or through the app requires only a few pieces of personal information and you'll get a decision within seconds.
- Credit check doesn't impact your score. To determine your program eligibility, Affirm conducts a soft credit check, which doesn't ding your credit score whatsoever.
- Multiple repayment options. Divide the cost over four interest-free payments paid biweekly (with the first payment due at purchase) or pay over three or more months with interest. In some cases, it won't charge interest on those longer-term loans.
- Zero interest on Pay in 4. Affirm will never charge you interest on its Pay in 4 option, making it a good choice to spread out the financial hit of a purchase — as long as you can fit it into your budget.
- No fees. The company doesn't charge late fees, prepayment fees, account opening fees or any other kind of fee.
- Transparent terms. Before you agree to use one of its payment plans, it will provide a breakdown of the total amount you'll owe, including any interest, and the exact amount of each installment payment.
- Integration with major stores and companies. Thousands of partner retailers use Affirm, including Samsung, Poshmark, and Dick's Sporting Goods.
- Convenient shopping on the mobile app and online. Its mobile application is well-reviewed, and its website is intuitive and easy to use for your shopping needs.
Affirm Cons
- High interest charges for some users. While Affirm offers interest-free payment options, some of its longer-term repayment plans come with interest charges that can be as much as 36%. This can add to the overall cost of your borrowing and be more expensive than credit card financing.
- Can hurt your credit score. Late payments may be reported to credit bureau Experian and included in your credit report. While you won't be charged a late payment penalty, you may see your late payments disclosed to Experian, a credit reporting agency.
May led to overspending. It's repayment options can help make purchases more affordable, but it can also tempt you into buying more and offset your budget.
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0.00% to 36.00%
N/A
8.74% to 35.49% fixed (with all discounts)
$5,000 to $100,000
680
Pros
Cons
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
9.95% to 35.99%
$2,000 to $35,000
600
Pros
Cons
Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.
Avant- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 2 to 5 years
- Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
- Loans made by WebBank, member FDIC
6.99% to 35.99%
$2,000 to $50,000
600
Pros
Cons
- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 3 to 5 years
- You may get your money by the next business day after your loan is reviewed and approved
- Loans made by Best Egg's lending partners
- Unavailable if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories
Affirm Overview
Affirm is a buy now, pay later app that functions like 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 to 60 months with interest. In some cases, depending on the merchant, Affirm won't charge interest on those longer-term loans.
The APR on your longer-term loans can range from 0% to 36% depending on your credit history, the retailer, and the amount you borrow. You'll get your exact terms when you check out.
It doesn't charge any fees to use its service — including late fees like some other buy now, pay later services do.
How Affirm Works
To create an account, sign up at a partner store, on Affirm's website, or on 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 is available through hundreds of thousands of retailers and does not have a minimum credit score requirement.
Affirm will run a soft credit check to confirm your eligibility 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 history as borrower.
It states 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 will likely report that to Experian, especially if the loan becomes delinquent.
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. Each loan application is considered separately, and checking your eligibility doesn't ding your credit.
Affirm Features and Benefits
Affirm Payment Plans Review
Affirm offers several kinds of delayed payment plans. For purchases between $50 and $1,000, its "Pay in 4" option allows you to pay off in order over four equal installments spread across six weeks. The first payment is taken at checkout and then each subsequent payment every two weeks after until the order is paid off. You won't pay any interest or fees for taking advantage of this payment plan.
The other Affirm payment plan offered functions similar to a traditional loan. For purchases of at least $50, you can opt to repay your order over the course of several monthly installments. You can choose to split the order total across three months, six months, 12 months, 18 months, 24 months, 36 months, or 60 months. You may be required to make the first payment as a down payment at checkout, depending on the retailer. These longer-term repayment plans also do not come with any fees but often charge interest. The interest rate you'll pay will be between 0% and 36%. If Affirm approves this loan, it may report your payments to the credit bureaus, impacting your credit score.
Its newest options, launched in June 2024, include a "Pay in 2" plan and "Pay in 30" plan. The first splits a purchase in half with interest-free payments due over two months. The other gives you 30 days to pay off an order without incurring any interest costs.
Affirm Card
To make shopping in stores that accept Affirm easier, the company released its own debit card, the Affirm card. You can use the card to pay in full for purchases or opt to pay over time by requesting a plan via the app before you buy or within 24 hours after buying. Keep in mind not all of your card purchases may be approved for a payment plan or for the full amount you want.
If you don't want to get a card but still want to use its payment plans to shop at physical stores or online retailers that aren't part of Affirm's merchant network, you can also request a one-time-use virtual card in the app. With this feature you can request a payment plan covering a certain amount with one retailer and then scan the card at checkout within 24 hours of receiving the virtual card. This specific card can only be used once at the merchant specified, but you can request other virtual cards for purchases at other retailers.
Affirm Mobile App
Affirm offers a robust and well-reviewed app that allows users to easily manage their payments, see due dates, and browse items sold by its partner retailers. In the app, you can choose to set up autopay so you don't have to worry about remembering a due date. Or check its shopping tab for special discounts or promotions stores may be offering exclusively to Affirm users.
How to Apply for Affirm
Eligibility Requirements
To use Affirm, you must be a U.S. resident, be at least 18 years old, have a valid Social Security number, and own a U.S. phone that can receive texts. Approval for its payment plans does hinge on your credit file, meaning you could be denied a loan if your credit score is low, your credit utilization is high, or you have overdue payments, delinquencies, or recent bankruptcies.
Step-by-Step Application Guide
You'll need to create an account with Affirm first, either by downloading the app or visiting the website. If you're already online shopping, you can select Affirm at any of its partner retailer's checkout and make an account that way too.
Once your account is set up, you can check your purchasing power to see what kinds of loans you're likely to be eligible for and how much you can finance. When you're shopping, you can use one of its payment plans on a purchase either by visiting one of its partner retailers, by shopping through the app, or using its Chrome extension. You'll receive an instant approval decision based on your credit history and the policies of the store you're buying from.
Affirm Interest Rates and Fees
Affirm doesn't charge users any late fees, prepayment fees, annual fees, or account open or closing fees. However, it may charge interest depending on the payment plan you select, with Affirm interest rates ranging from 0% to 36% APR based on your credit and the merchant.
Compared to other BNPL programs, it stands out for its transparency and lack of hidden fees. For example, Afterpay and Klarna generally offer interest-free payments split over four installments, but both charge late fees if a scheduled payment is missed.
Affirm Customer Experience
Affirm's app earns an almost perfect score on both the Google Play Store and the Apple App Store with a 4.8 star rating (out of five) and 4.9 star rating, respectively. Users generally like Affirm's easy application process, the flexibility of its payment plan options, and the transparent loan terms.
Some user comments mention issues with the level of customer support they received and the timeline of the refund process when an order is canceled or returned. Some users have also expressed frustration at the interest rates they were offered or ran into trouble affording their Affirm payments, particularly when they're paying off multiple loans simultaneously. Research has shown buy now, pay later programs can lead to overspending because the smaller payments make items appear cheaper than they actually are.
Is Affirm Trustworthy?
Affirm has multiple processes in place to protect your personal data, including storing it with data encryption. Access to your data is restricted to authorized personnel and requires multi-factor authentication to get into. Simply put, there are multiple safeguards to protect your information and keep it from bad actors.
On Trustpilot, reviews for Affirm are average, earning a 3.0 star rating out of 5. Customer experiences with Affirm highlight significant frustrations with unresponsive and inefficient customer service, especially when dealing with payment issues, refunds, and account problems.
Additionally, Affirm is rated an A+ by the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB determines ratings based on a company's response to customer complaints, honesty in advertising, and openness about business practices. BBB ratings don't always guarantee you'll have a good relationship with the lender. Affirm only has a 1.17 star rating out of five on the site currently.
Affirm Alternatives
Affirm vs. Afterpay
Afterpay Buy Now, Pay Later offers a pay in four option as well as few monthly installment plans, but not as many as Affirm does. Afterpay also charges late fees, which Affirm does not. Both BNPL services are widely available and integrated into the checkouts of hundreds of different retailers and offer a digital one-time use shopping card for in-store shopping. Afterpay does not report your repayment activity to the credit bureaus, like Affirm sometimes does.
Read our Afterpay review.
Affirm vs. Klarna
Like Affirm, KlarnaKlarna offers multiple repayment plans, including a pay in four option and a pay in 30 days option. On larger purchases, it does sometimes provide longer financing plans, usually between six months to two years. Klarna also charges late fees, which Affirm does not. Both BNPL services can be used at hundreds of different retailers. Finally, Klarna does not report repayment activity to the credit bureaus, but Affirm sometimes does.
Read our Klarna review.
Affirm vs. PayPal Credit
With PayPal Credit, you can delay paying off a purchase of $149 or more for up to six months with no interest charges, but because it is a line of credit, it will require a hard credit check to get approval, which could impact your credit score. Affirm's application requires only a soft credit check. PayPal also charges late fees that can be as much as $41. And, if you fail to pay off the order within six months, you'll be on the hook for interest too. PayPal Credit will charge you deferred interest, often at high rates like its current 31.39% APR, dating all the way back to the date of the purchase. It is available anywhere that accepts PayPal as well as hundreds of online stores.
Who Should Use Affirm?
Affirm is best for borrowers who want longer-term financing options. You may be able to pay no interest on long-term purchases, depending on the retailer — 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.
Why You Should Trust Us: How We Rated Affirm
Business Insider evaluates buy now, pay later services using a rating system that considers a range of factors from fees to customer support. We highlight the strength and weaknesses of each company in our guides as well as compare them with others that are available so you can decide which BNPL plan suits your needs best.
See our personal loan rating methodology for more details.
At Business Insider, our reviews are guided by editorial independence, meaning our recommendations and ratings are based on objective criteria, thorough research, and expert analysis. Advertisers do not dictate our content, ensuring our reviews remain transparent and unbiased.
Affirm Review FAQs
How does Affirm work?
Affirm is a financial technology company offering various buy now, pay later and other installment loans for consumers to use when purchasing items from thousands of different popular retailers.
Are there any fees associated with Affirm?
Affirm doesn't charge late fees, service fees, prepayment fees, or any other fees. Depending on the payment plan you chose, you may pay interest charges.
Does Affirm report to credit bureaus?
Affirm will run a soft credit check to confirm your eligibility for its service when you go to make a purchase for the first time, but this does not impact your credit score. It may, however, report longer-term loan payments or late payments to Experian, which can impact your credit score.
Is Affirm safe?
Yes, Affirm is safe to use and protects your data with strong encryption and security protocols. With transparent terms and no hidden fees, Affirm financing offers a reliable way to make purchases without unexpected charges.
Is Affirm a good idea?
Affirm can be a good option for U.S. residents who need flexible payment plans, particularly with its "Pay in 4" option offering interest-free financing. However, with a possible high APR rate, if you are considering longer-term financing, you should carefully review the terms and ensure you can comfortably manage the payments to avoid high interest costs.
Fixed rates from 8.74% to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 08/08/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000— $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 11/03/25. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.
