Affirm Review: How It Works and Is It Safe?

If you’ve done any shopping recently, then you’ve probably seen an option at checkout to split up your total into four (or more) “easy payments.”

One of the biggest companies offering these kinds of buy now, pay later plans is Affirm. But is it a good idea to use Affirm instead of paying for your purchase all at once? Is Affirm even safe?

Let’s talk about how Affirm works and how much you actually pay after checkout.

What Is Affirm?
How Affirm Works
Affirm Approval Requirements
Is Affirm Safe?
Affirm Review
A Better Way to Shop

Affirm is a loan provider that offers buy now, pay later payment options to shoppers. Nowadays, you’ll see in-person and online stores (including Amazon) partnering with digital installment apps like Affirm, as well as Afterpay, Klarna and Fingerhut.

You can use Affirm to buy everything from designer baby clothes to an inflatable jacuzzi. But just because your favorite online boutique gives you the option to break up your purchase into several payments, it doesn’t mean it’s a good option.

Affirm says they’re customer focused, helping people say yes to the things they want to buy. But to be clear: When you use Affirm, you’re taking out a loan. So, what you’re really saying yes to is debt.

Okay, so there are two ways people shop with Affirm. You can either 1) use the Affirm mobile app or Chrome browser extension to shop stores that have the option to pay with Affirm or 2) choose to check out with Affirm when shopping online or in store.

Affirm divides the total cost of a purchase into smaller payments that you pay back in installments over time. But how many payments you make depends on the type of credit you sign up for.

Affirm Credit Options

Affirm Pay in 4: This payment plan divides your total purchase cost into four interest-free installments. You may have to make the first payment at checkout. Otherwise, you’ll be billed every two weeks until the loan is paid in full. And you can make payments using a debit card, credit card or bank account.

Affirm Monthly Payments: For larger purchases, you can choose a longer loan term (up to five years). But you will pay interest with this payment plan—as high as 36% APR (annual percentage rate). You’re billed every month until the loan (including interest) is completely paid off. However, you can’t use a credit card to make monthly payments with this plan. And you may have to make a down payment at checkout if you don’t qualify for the full loan amount.

	Affirm Pay in 4	Affirm Monthly Payments
Number of Payments	Pay in four installments every two weeks	Pay monthly from three to 60 months
Availability	Available online and in store	Available online and in store
Purchase Amount	$50–1,000+	$50–5,500+
Payment at Checkout	Down payment may be required	Down payment may be required
Interest	No interest	0–36% APR1

Other Affirm Payment Options: Affirm is slowly rolling out two new payment plans to customers—Affirm Pay in 2 and Affirm Pay in 30.² These options let shoppers either split up their purchase into two payments per month or pay in full within 30 days of their purchase.

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So, how does this play out when you’re shopping? Well, let’s say you have your eye on a designer bag, but you don’t have enough for the $500 price tag. You opt in to a 12-month Affirm payment plan with 15% interest. In that case, your monthly payment would be $45.13, but you’d actually pay $541.55 after a year.³

I know an extra $40–50 doesn’t seem like a lot now. But once you get into the habit of using buy now, pay later services to purchase things you can’t afford, it can become an addiction. Pretty soon, you’re splitting payments left and right to feel that shopper’s high. And before you know it, you owe hundreds of dollars in interest. Yep, that’s how they get you.

In order to apply for Affirm’s credit options, you must:

• Be at least 18 years old
• Be a permanent resident or citizen of the U.S.
• Have a Social Security number
• Have a valid phone number that gets text messages

Does Affirm check credit?

Yes, Affirm will check your credit history to see if you’re eligible for a loan, but it’s a soft inquiry, which doesn’t impact your credit score. And while they don’t list a required minimum credit score to shop with them, you may have to verify your income or prove you can make on-time payments before you’re approved.

While Affirm is a legit company and your information is technically secure, I wouldn’t say it’s “safe” to use.

Affirm lures you in with promises of easy payments. But you usually end up paying more for that luggage set when you pay monthly than if you’d just saved up and paid cash for it instead. And if you’re not careful, your retail therapy can quickly turn into a massive debt problem.

If you haven’t figured it out yet . . . I’m not a fan of Affirm. In fact, I don’t like any buy now, pay later plans. Why? Because they trick people into thinking that debt is safe. Spoiler alert: It’s not.

But here are a few more reasons why you should steer clear of Affirm:

For starters, if you choose the monthly financing option, your interest rate can be high. Like, really high. To give you some perspective, the average credit card interest rate is 23.37%, while Affirm’s rates can get up to 36%.^4,5 That’s crazy, you guys! And the longer the payment plan you choose, the more you’ll pay in interest.

Also, even though Affirm won’t charge you late fees, missed payments can still hurt your credit score. And while I personally live without a credit score and encourage others to do the same, I’m not a fan of companies being sneaky about how their process works.

Plus, customers say getting a refund from Affirm after they return an item is often a nightmare. And they don’t refund any of the interest you already paid them. Oof.

The bottom line: Affirm is in the debt business. They profit off instant gratification—getting you to buy what you want right now without having to wait. And listen, I want you to be able to buy nice things, but I want you to do it without going into debt and making payments for months to come. Luckily, there’s a better alternative to Affirm.

When you use buy now, pay later plans like Affirm, you’re more likely to buy stuff you can’t afford. But when you have a plan before you shop, you can stay on track with your money goals.

That’s why having a budget is so important!

A budget doesn’t limit your freedom. It gives you freedom to spend, without fear of interest or fees sending you into debt. A budget puts you in control—so you can say no to overspending and yes to intentional spending.

The best way to budget? With the EveryDollar app. (It’s what I use!) EveryDollar helps you plan your spending, track your expenses, and pay off debt. Plus, you can set up sinking funds to save for big purchases. Oh, and it’s free!

Don’t fall for the Affirm debt trap. Create your free budget with EveryDollar today!