How Does Affirm Affect Your Credit Score?

Affirm, a “buy now, pay later” (BNPL) service, allows consumers to purchase items and pay for them over time through installment plans. This payment method offers an alternative to traditional credit cards. This article explores how Affirm activity influences a consumer’s credit score.

How Affirm Reports to Credit Bureaus

Affirm reports loan activity, including payment history and loan amount, to major credit bureaus. As of April 2025, Affirm began reporting all payment plans, including “Pay in 4” options, to Experian. From May 2025, Affirm also started reporting this information to TransUnion. This means every instance of using Affirm’s pay-over-time service will be reflected on a consumer’s credit report.

Previously, only longer-term Affirm loans were typically reported, primarily to Experian. Shorter “Pay in 4” plans were generally not reported unless the account became delinquent. Now, reported information includes the original and outstanding balance, payment history, and specific loan terms.

Impact on Credit Score

The information Affirm reports to credit bureaus can influence a consumer’s credit score, presenting both benefits and drawbacks. A positive impact stems from consistent, on-time payments, which are a cornerstone of a healthy credit history. Successfully completing Affirm loans by making all payments punctually demonstrates responsible financial behavior, which can contribute positively to a credit score over time.

Conversely, late or missed payments can negatively affect a payment history, potentially leading to a lower credit score. For instance, payments that are more than 30 days overdue can cause a notable drop in a credit score, sometimes ranging from 50 to 100 points. This reflects poorly on a consumer’s financial reliability to future lenders.

When applying for an Affirm loan, the company typically performs a “soft” credit inquiry, which does not impact a credit score. However, once an Affirm loan is taken out and reported, it appears as a new account on a credit report. Each new account can temporarily reduce the average age of a consumer’s credit accounts, a factor that contributes to the overall credit score.

While Affirm loans are installment loans and not revolving credit, having multiple new loans can also influence a credit score by increasing the total amount of debt reported, which could be perceived as higher risk. Some credit scoring models may view consumer finance loans as riskier, potentially affecting the score.

Strategies for Responsible Affirm Use

To benefit or avoid harming a credit score, consumers should adopt responsible practices when using Affirm. Making all payments on time is crucial, as punctual payments are the most direct way to build a positive payment history. Setting up automatic payments can help ensure that due dates are not missed.

It is important to understand the terms of any Affirm loan before agreeing to it. Consumers should be aware of the repayment schedule, the total amount to be repaid, and any applicable interest rates, which can range from 10% to 36% APR. Avoiding taking on more Affirm loans than can be comfortably repaid is also important.

Regularly monitoring personal credit reports is beneficial. Consumers can access free copies of their credit reports from each of the three major bureaus annually to review how Affirm activity is being reported and to identify any discrepancies. An Affirm loan, as an installment loan, can diversify a credit mix, which can be advantageous for a credit score if managed responsibly.