What Bank Is Affirm Through & Who Are Its Partners?
Understand the banking partners behind Affirm's loans and why identifying your loan originator is crucial for consumers.
Affirm is a “buy now, pay later” (BNPL) service that allows consumers to acquire goods and services immediately and manage payments over an extended period. This financial technology company enables individuals to split purchases into smaller, manageable installments. It offers various payment options, including bi-weekly or monthly plans, some of which are interest-free. As the largest U.S.-based BNPL provider, Affirm provides flexible payment solutions for a wide range of consumer needs.
Affirm’s Business Model
Affirm operates as a technology platform rather than a traditional bank. The company’s core function involves facilitating consumer loans through a network of third-party lending partners, effectively connecting shoppers with financing options at the point of sale. This model allows Affirm to offer flexible payment plans without directly holding a banking charter.
The company generates revenue primarily from two sources: merchant commissions and interest on consumer loans. Merchants pay Affirm a fee for offering its payment solution. Additionally, Affirm earns interest income on the loans it facilitates, though it also provides interest-free options depending on the merchant and consumer eligibility. Affirm does not charge late fees.
Affirm uses advanced algorithms to assess a consumer’s creditworthiness in real-time, considering data beyond traditional credit scores. This allows for quick approval decisions and tailored payment plans. Affirm’s technological infrastructure underpins its ability to offer diverse financing options and manage its network of lending partners.
The Banks Behind Affirm Loans
Affirm partners with several regulated financial institutions to originate the consumer loans offered through its platform. These partnerships are fundamental to Affirm’s operations, as the company itself does not possess a banking license to issue loans directly. The primary banks responsible for originating Affirm loans are Cross River Bank, Celtic Bank, and Lead Bank.
Cross River Bank, a New Jersey State Chartered Commercial Bank and Member FDIC, originates a substantial portion of Affirm’s consumer loans. It also holds the Affirm Money Account and Affirm savings accounts. Celtic Bank, a privately owned industrial bank chartered by the State of Utah, also plays a role in issuing the one-time-use Affirm virtual card. Lead Bank, a Missouri State Chartered Bank, is another lending partner.
Beyond loan origination, other banking partners support different aspects of Affirm’s services. Evolve Bank & Trust, an Arkansas State Chartered Community Bank, provides banking services for and issues the Affirm Card. Stride Bank has also joined as a card issuing bank partner for the Affirm Card. This multi-bank approach allows Affirm to maintain a diversified lending capacity.
Understanding Your Loan Originator
Understanding which entity originates an Affirm loan is relevant for consumers, especially concerning how the loan may appear on credit reports and for specific inquiries. While Affirm facilitates the loan process and manages the payment interface, the actual loan is held by one of its originating bank partners. This distinction is important for clarity regarding the financial institution ultimately responsible for the credit extended.
Affirm reports payment activity to major credit bureaus, which can impact a consumer’s credit profile. Beginning April 1, 2025, all Affirm payment plans and their associated repayment activity are reported to Experian. From May 1, 2025, this reporting expanded to TransUnion. This includes details such as the original loan balance, outstanding balance, payment history, and loan terms, even for shorter-term “Pay in 4” plans.
On-time payments can contribute positively to a credit history, while missed payments can negatively affect a credit score. Checking eligibility or pre-qualifying for an Affirm loan typically involves a soft credit inquiry, which does not impact your credit score. For most loan-related inquiries, consumers should continue to interact directly with Affirm through its platform, as Affirm services the loans on behalf of its banking partners.