Affirm is a lender that allows you to buy now and pay later, whether you’re shopping in-store or online. After qualifying for one of these short-term loans, you choose a payment schedule and then pay at affirm.com or in the Affirm app. Borrowers know up front how much they will pay for each installment and that amount will never rise.
Here’s more about how Affirm works and whether this alternative to a credit card could be right for you.
How Does Affirm Work?
You can either select Affirm at checkout online or use an Affirm Card for an in-store or online purchase. Affirm has partnered with around 478,000 merchants, from Amazon to Delta Air Lines, and its virtual and physical cards are accepted at most places that take Visa.
If you prefer desktop shopping, you can download the Affirm browser extension for Chrome and log in to your Affirm account through the extension to make purchases.
First, you will provide information such as your name, cellphone number and birthdate to prequalify for a loan without hurting your credit score. You will then receive a real-time decision about whether your loan has been approved and how much you can spend.
[Read: Best Low-Interest Personal Loans]
While Affirm doesn’t disclose income requirements, the lender does take your income, payment history and existing debts into consideration when deciding whether to approve you.
If you are approved, you can then choose how you’d like to repay your loan:
— Affirm Pay in 4. This option allows you to repay your loan in four interest-free payments every two weeks. Pay in 4 loans come with no interest or fees and there’s no predetermined loan amount. Instead, the amount depends on how much you want to borrow and your ability to pay it back.
— Monthly installments. This option is preferable for larger purchases. However, interest rates range from 0% to 36%, and your terms vary depending on the store, the purchase and your credit.
During checkout, you will see the total interest you will pay, and Affirm pledges never to charge you more than that. If you pay faster than the agreed-upon terms, you might save money.
Plans may require a down payment. For monthly plans, your first installment is usually due one month after the merchant processes your purchase. If you opt for a biweekly payment plan, your down payment may be considered your first installment. Your next payment is due two weeks after that.
The Affirm Card is an option when a merchant doesn’t offer Affirm at checkout. You can request a physical and virtual card on the Affirm website or app and use it like any other Visa debit card. To unlock the full range of features of the card, you need to link an external bank account or sign up for an Affirm Money account.
You can keep track of your card purchases on the app and decide which purchases you wish to pay in full or installments. You’ll enter the card number if you’re paying online or load the card into Apple Pay or Google Pay and use it at most places that accept Visa.
In some cases, you can have more than one Affirm loan at the same time. You may be approved for loans at some stores but not others, and if you already have one Affirm loan, you might have to wait before taking out another. Each loan application is considered separately.
Does Affirm Have a Credit Limit?
Affirm is not a revolving line of credit with a limit like a credit card. The company offers short-term loans with fixed payments. Revolving credit, on the other hand, allows you to repeatedly borrow up to a limit, repay it and borrow again as needed.
To use Affirm, your purchase typically must be between $35 and $30,000. However, it will only finance up to $20,000. So, if you make a $30,000 purchase, you must make a $10,000 down payment. Loan limits vary by merchant and will depend on your credit record and payment history with Affirm.
[Read: Best Bad Credit Loans.]
Does Affirm Affect Your Credit Score?
Affirm uses a soft credit check to determine your loan options, which does not impact your credit score. If you move forward with certain long-term installment loans, Affirm may run a hard inquiry, which can have a minor impact on your score.
As of 2025, Affirm reports eligible pay-over-time loans to Experian and TransUnion. That means on-time payments can help your credit history, while late or missed payments could damage your credit score.
Does Affirm Charge Interest and Fees?
Unlike with credit cards, you do not pay compound interest, or interest on interest, and Affirm charges no late fees or penalties. You won’t owe prepayment, annual or account maintenance fees.
Interest on Affirm loans is charged only on the purchase amount, or the principal balance, which saves you money. The merchant and the purchase amount for each loan will determine whether you pay interest. Many Affirm partners offer 0% financing, but annual percentage rates on other loans range from 10% to 36%.
How Do You Pay Your Balance?
You can make or schedule payments at affirm.com or on the Affirm app using your debit card or checking account, or you can mail a check. Some 0% APR loans, also called Pay in 4 loans, can be paid using a credit card. Though, keep in mind that some credit cards may not allow payments for buy now, pay later services.
You can also pay your Affirm balance by opening and funding an Affirm Money account. The account offers a 3.2% annual percentage yield with no account maintenance or overdraft fees.
Affirm sends email and text reminders for payment due dates and offers automatic payments, but you need to turn on this option by logging in to your account. This will automatically deduct your monthly payment on each due date from a debit card or bank account.
If you want to stop using auto pay, you will need to turn it off at least three days before your next payment is due. For an overdue amount, you will need to schedule a one-time payment; it cannot be automatically debited.
[Read: Best Balance Transfer Cards]
Is Affirm Safe?
Affirm says it meets industry standards for protecting customers’ personal information. You’ll need a cellphone number to create an account and sign in, plus two-factor authentication to verify your identity. Users are not responsible for unauthorized purchases, and Affirm has teams dedicated to investigating such incidents.
If you’re having a problem with a purchase that you can’t resolve with the merchant, Affirm can open a dispute on your behalf and pause payments during the investigation.
Both sides have 15 days to make their case, and Affirm will notify you of their decision within 15 days. However, if you used the Affirm virtual card for the transaction, you’ll be notified within 90 days. If the dispute is resolved in your favor, you will receive a full refund of the purchase price, minus any interest paid.
The Affirm Money Account is Federal Deposit Insurance Corp.-insured for balances up to $250,000 through its partnership with Cross River Bank.
How Do Returns Work?
You will need to contact the merchant to request a refund. While you’re waiting for a refund, you must continue to make any loan payments that are due. Affirm issues refunds to your original payment method, but you may receive a check if you used a debit card or ACH payment. A refund by check could take up to 30 days to reach your account.
Should You Use Affirm?
Buy now, pay later services, such as Affirm, can be helpful when used responsibly.
Affirm could help someone who is “dead set on a purchase,” says Charles H. Thomas III, certified financial planner and founder of Intrepid Eagle Finance. “They might pay less in interest and fees with a model like Affirm than on a credit card balance,” he says.
But as with credit cards, these loans could easily lead you to overspending, says Thomas.
“Our desire for instant gratification is strong and hard to overcome sometimes,” he says. “Most folks are better off waiting to make a purchase when they have the money available.”
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Everything You Need to Know About Affirm originally appeared on usnews.com
Update 03/12/26: The story was previously published at an earlier date and has been updated with new information.