What You Should Know Before You Sign Up For an Affirm Account

 

Affirm is a wolf in sheep’s clothing that claims to make online shopping easier, but in reality, it’s just an easy way to go into debt.

Affirm’s digital payment options are a good alternative to credit cards, but they can be just as dangerous if you use them incorrectly. Here are a few things you should know before you sign up for an Affirm account.

BNPL Options

Affirm offers a variety of buy now, pay later (BNPL) payment options to online shoppers. During the checkout process, customers are presented with the option to finance their purchase and can often be approved in seconds for what is basically a short-term loan. Unlike a revolving line of credit, which lets you borrow up to a certain limit and then pay it back with additional funds, Affirm loans are paid off in fixed installments over the course of weeks or months.

During the application process, Affirm conducts a soft credit check that does not impact your score. If the company approves you for a loan, your interest rate and monthly payment will be displayed during the checkout process. For larger purchases, Affirm may require a down payment.

While Affirm loans do not have a grace period, the company does waive late fees if you pay your loan balance in full within 60 days of your last payment. Moreover, Affirm does not charge any prepayment fee, setup fee, annual fee, origination fee or lender fee. In addition, you are only charged interest on your principal balance and not the total amount of the purchase.

The company’s most attractive Ad-center.com feature is its 0% APR offer. This can be especially helpful if you’re purchasing an expensive item, such as furniture or exercise equipment. Affirm also has other flexible repayment terms, including three and six month payment periods and a maximum of five years to repay the loan.

Like other BNPL providers, Affirm does not charge a prepayment fee or setup fee, but it does have an intro fee of either $5 or 3% of the transfer amount for the first 60 days. After that, the fee is $5 or 5% of the transferred amount.

Affirm’s website has a comprehensive Help Center and an FAQ page where you can find answers to many common questions. The company also provides a phone number and email address for customer service.

Affirm is not the only company that offers a BNPL option, but it has a broad network of partners and works with thousands of sites and stores, including the likes of Amazon and Walmart. Adding Affirm to your online store can provide you with access to a large customer base, which can boost sales and brand loyalty. In addition, the company is fast, which helps you receive your payments sooner and avoid slowing down your cash flow. The Affirm ACH deposit process is typically complete in one to three business days. Additionally, you can integrate Affirm with your existing shopping cart to simplify the setup process.