What Credit Score Do You Need to Use Affirm?
Understand how Affirm evaluates your creditworthiness beyond traditional scores and learn how using their buy now, pay later service can affect your financial profile.
Affirm is a financial technology company that provides a “buy now, pay later” (BNPL) service, allowing consumers to purchase goods and services and pay for them over an agreed-upon period. This payment method divides the total cost into smaller, manageable installments, often making larger purchases more accessible. Customers can typically choose from various payment schedules, including interest-free options or plans with interest, depending on the purchase and their eligibility.
Affirm’s Credit Assessment Approach
When a consumer applies to use Affirm for a purchase, the company typically conducts a “soft credit check” or “soft inquiry” to evaluate their eligibility. This type of credit inquiry does not negatively impact an applicant’s credit score, unlike a “hard inquiry” which can temporarily lower it. Affirm does not publicly disclose a specific minimum credit score required for approval, as its assessment process extends beyond traditional credit scoring models. While some individuals with credit scores around 550 have reported approvals, and scores of 640 or higher generally improve approval odds, there is no fixed score threshold.
Affirm utilizes its own proprietary underwriting models, which incorporate machine learning and analyze a wide array of data points to determine a consumer’s creditworthiness. This approach aims to provide a more holistic view of an applicant’s financial situation compared to relying solely on a traditional credit score. This individualized assessment means that even those with limited credit history might be approved, as the system considers factors beyond what conventional credit scores typically capture.
Additional Factors in Affirm’s Decision Process
Beyond the initial credit assessment, Affirm considers several other financial and transactional details. An applicant’s income and current employment status are evaluated. Existing debt obligations, including a review of their debt-to-income ratio, also play a role in determining financial health.
An applicant’s repayment history with Affirm significantly influences approval for new loans and the terms offered. Consistent on-time payments with previous Affirm loans can demonstrate responsible financial behavior. The specific merchant, the total amount of the purchase, and the chosen repayment terms are also factors, as approval criteria can vary by store and loan size. Affirm also considers credit utilization and the length of a consumer’s credit history.
Impact of Affirm Usage on Your Credit Profile
Using Affirm can influence a consumer’s credit profile, both positively and negatively, depending on repayment behavior. Loan activity, including payment history and balances, may be reported to major credit bureaus.
Beginning April 1, 2025, Affirm started reporting all payment plans and repayment activity to Experian, and to TransUnion starting May 1, 2025, including shorter-term “Pay in 4” loans. Making all payments on time can positively contribute to a user’s credit history and potentially improve their credit score. Conversely, late or missed payments, especially those 30 or more days past due, can negatively affect a user’s credit score, potentially causing a significant drop of 50 to 100 points. Negative marks can remain on a credit report for up to seven years.