Is Affirm Hard to Get Approved For?

Affirm is a financial technology company offering a “buy now, pay later” (BNPL) service. It allows consumers to make purchases and pay for them over time through installment loans.

Understanding Affirm’s Approval Process

Affirm uses a proprietary algorithm to assess creditworthiness, considering various data points beyond a standard FICO score. A soft credit check is performed, which does not impact an applicant’s credit score. This check verifies identity and determines eligibility without leaving a visible inquiry on a credit report.

Approval for an Affirm loan is on a per-transaction basis. Being approved for one purchase does not guarantee approval for another, as each application is evaluated independently. If a loan is accepted, Affirm may report payment history to credit bureaus like Experian and TransUnion. On-time payments can positively affect a credit score, while late payments can negatively impact it.

Key Factors for Approval

Affirm evaluates several criteria for approval. While no single minimum credit score exists, a positive credit history is beneficial. Consumers with a credit score of 640 or higher have a better chance for longer-term loans. Approvals have occurred for scores as low as 550 for shorter-term plans. On-time payments and low credit utilization are also considered.

Existing debt and income are assessed to determine repayment capacity. Affirm may ask for income information to assess an applicant’s ability to repay. The debt-to-income ratio is a significant factor. An applicant’s repayment history with Affirm holds considerable weight. Positive past behavior increases future approval chances.

The purchase amount and merchant influence approval and terms. Larger purchases may be harder to approve or require a down payment. A down payment may be required to secure approval or improve loan terms. This payment is processed immediately upon confirmation.

Navigating the Application and Decision

The Affirm application occurs at checkout. Applicants provide personal information like name, email, phone number, date of birth, and the last four digits of their Social Security Number (SSN). This SSN is used for identity verification and the soft credit check.

After submission, the decision is communicated instantaneously. If denied, Affirm sends an email explaining the decision. Denial does not harm a credit score, as the initial check is a soft inquiry. Applicants can review the reasons provided.

Once approved, the applicant receives the loan amount, interest rate, and repayment terms. To accept, the applicant confirms the loan and can set up payments, often with autopay options. Payment schedules are available in the Affirm app or on their website.