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Does affirm report to credit bureaus?

Your credit score is a huge factor when applying for a loan or mortgage. If you have good credit, you’ll be able to get rates lower than the average person and pay off your debts faster. On the other hand, if your credit is poor, it will be harder to get approved for specialty or new loans, and if you get approved, you’ll have a considerably high interest rate. That’s why you need to be aware of your credit to understand your financial position and know what information is available to lenders.

affirm website

Typically, creditors will report to credit bureaus when you fail to pay back your loan. Credit bureaus then gather this data and create consumer credit information which they avail to private lenders. However, some firms don’t report to credit bureaus. As such, you need to check your credit report at least once a year to be sure where you stand.

So, if you’ve dealt with Affirm or are looking to transact with them, the biggest question you may have is, “Does Affirm report to the credit bureaus?” Well, there’s a lot of confusion about how Affirm works and how it affects your payment gateway. That’s why we are here to help clear away some of the mystery. Keep reading to find out more.

What is Affirm loan?

Affirm is a type of bnpl (buy now, pay later) plan. Buy Now, Pay Later options shortened as bnpl services are a type of credit that allows you to buy a product now and pay later. You can choose to pay off your item in full at any time during the repayment period. Affirm has flexible payment plans and lets you purchase what you like with no credit limit, no deposit, and no prepayment fees.

Initially, Affirm was popularly known for online purchases (online stores), where you could buy anything you want, from furniture to electronics to clothing. However, recently the firm has expanded its services to some brick-and-mortar stores as well.

While the bnpl companies do not charge their clients any fee, failing to pay off the loan in time may incur a monthly fee until the debt is paid off. The bnpl company offers two different types of financing. They include:

guy using affirm app

Affirm Interest-Free

You have 6 months to pay off your purchase without interest or additional fees. If you miss a payment or stop using Affirm, you’ll be charged late fees of $10 per month or $5 per installment.

Affirm Pay Over Time

They offer two options for this type of Affirm financing. These are:

Affirm Pay Over Time + No Fee:

You have 12 months to pay off your purchase without interest or fees. If you miss a payment or stop using Affirm, you’ll be charged a late fee of $10 per month or $5 per installment. The minimum payment amount may vary based on the amount financed and your unique situation.

Affirm Pay Over Time + Interest:

You have 12 months to pay off your purchase with interest rates starting at 24%. Your monthly affirm payments will be rounded to the nearest dollar and paid over time. If you miss a payment or stop using Affirm, you’ll be charged late fees of $10 per month or $5 per installment. The minimum payment amount may vary based on the amount financed and your unique situation.

affirm app with money on pink table

How does Affirm loan work?

Your Affirm account connects directly with more than 1,500 merchants and financing partners to provide you with the best possible offers on your purchases from these bnpl providers. The company uses its proprietary technology platform to connect consumers with retailers and Affirm financing partners. It works by allowing consumers to apply for a line of credit that is linked to their purchase. The amount of money available depends on the item being purchased, but it can go up to $3,000 for some stores like Best Buy or Target.

After purchasing an item through Affirm, consumers are given days or months to pay off their balance before interest charges begin to accrue. After paying off your balance in full within the recommended time, you can use that same line of credit again if you want — within 30 days — without having to reapply.

Affirm is a credit card alternative that offers 0% financing on purchases, with no annual fee, no hidden fees, and no interest if you pay your bill on time. It’s a great financing option for young consumers who want to finance a purchase or pay off their balance quickly without paying interest.

How long does Affirm take to approve?

The amount of time it takes to get approved for these bnpl loans is different for each person. In general, the process should be completed within 24 hours. However, this could be extended if you have questions or need to send in documents.

When you apply for a bnpl loan through Affirm mobile app, the application will go through an underwriting process. This means that Affirm will review your financial situation and determine whether or not you qualify for the amount of money you requested.

If there are no problems with your application and Affirm approves your request, they will email you a link to accept their terms and conditions. Once you accept these payment terms and conditions, Affirm will deposit the funds into your bank account within two business days (or less).

What is the Affirm credit card?

The Affirm debit card is a new type of credit card for people with bad or no credit. It’s not a traditional credit card that reports to the three major credit bureaus. Instead, it’s an alternative financing option for people with limited or no credit history to build up their credit score and establish a positive payment history.

The Affirm credit card has no annual fee and interest charges if you pay your balance in full by the due date each month. Other benefits of the Affirm debit card include:

  • Zero liability protection – You won’t be responsible for any fraudulent charges on your account if your card is lost or stolen.
  • No annual fee – The Affirm card doesn’t charge an annual fee and has no hidden fees, so you can use it as often as you like without worrying about getting hit with extra charges.
  • Low-interest rates – You’ll pay a low 12.9% APR on purchases made with the Affirm card, meaning you’ll pay less in interest over time than if you had paid with another credit card that has a high interest rate.

How do I pay my Affirm bill?

Affirm allows you to pay your bills in one of the following ways:

Pay by credit card

To pay your Affirm bill with a credit card, select that payment method when you sign up for your Affirm account. You can change this payment method at any time through your Account Settings.

Pay by bank transfer

To use bank transfer as a payment method to settle your Affirm bill, you need to log in to your Affirm app and choose “Make a payment.” After selecting “Make a Payment” on your Affirm account, you’ll be directed to a page where you can make a one-time or recurring bank transfer from your preferred bank account.

Is there a deadline to pay off my Affirm debt?

You are required to make monthly payments. The company automatically sends you reminders 3 days before every payment due date.

If you’re not able to pay off your balance before the end of the promotional period, they will charge interest from the date of purchase (or from the end of your promotional period) until all payments are made.

Does Affirm affect your credit score?

When you initially open an Affirm account, it does does not affect your credit score. Why? Because, unlike traditional lenders that carry out a hard credit check (hard inquiry) that lowers your credit score, Affirm only conducts a soft credit check, which doesn’t impact your credit score.

Does Affirm report to credit bureaus?

According to the affirm website:

There are certain types of loans that will not include credit reporting to Experian. For instance, Affirm will not report a loan to Experian if the loan is 0% and 4 biweekly payments or you were only offered one option at application of a three month payment term with 0%.

For other loans, Affirm may report your payment history to Experian. Please be aware, Affirm may report loans with delinquent payments, which may have an impact on your credit.


Once you’re given a bnpl loan by Affirm, depending on the loan type you receive, they will only report your payment history to Experian and not to the other major credit bureaus like TransUnion and Equifax. This means that your account and payment information may not always appear on your credit history, even when you make late payments.

This CAN then affect your credit score being that your payment history, payment terms and credit balance are reported to Experian.

According to affirm, These things won’t affect your credit score:

  • Creating an Affirm account
  • Seeing if you prequalify

These things may affect your credit score:

  • Your payment history with Affirm
  • How much credit you’ve used
  • How long you’ve had credit
  • Making late payments

When you use Affirm, they accept money upfront, but it won’t be reported to major credit bureaus until it’s actual due. So, ensure you are making your payments on-time to maximize the positive payment history on your credit report.

Remember, if you don’t pay your Affirm loan at all, it may be forwarded to collection agencies and will affect your credit score.

What is a credit score?

A credit score is an algorithm that uses data from your credit report to predict whether you’ll pay back money owed on time. When lenders take out bnpl loans for homes or cars, they want to know if they should trust borrowers with their cash. So they use your credit history as part of their decision-making process. Your credit report contains information about your borrowing behavior over time, including how much credit card debt you carry and how often you pay bills on time (or not).

To generate a credit score, financial institutions use algorithms that interpret this information and assign each borrower a rating between 300 and 850 — higher numbers are better than lower ones.

What Credit Score Do You Need To Get an Affirm Loan?

Affirm offers bnpl loans from $1,000 to $10,000. Loans can be used for any purpose but are most commonly used for large purchases such as weddings or home renovations.

The minimum credit score required for an Affirm loan is 600. To get a loan, you’ll need to fill out an application through their mobile app and provide proof of income and personal information for identification such as date of birth and your email address. Affirm also looks at your total debt-to-income ratio — the amount of money you spend on expenses each month compared to the amount you earn each month — when deciding whether or not to issue a loan to you.

Final thoughts

So does Affirm report to credit bureaus? The answer is yes, with certain loans. That is why you want to ensure you can afford to make your affirm payments every month and on time to avoid breaching your agreement with affirm and therefore, hurting your credit score.

In the end, we have to say that Affirm is a good idea for those looking to get a little more help with their finances. The rates are very reasonable, and the service is fast and easy to use. We recommend it!