How Does Affirm Work?

What Is Affirm?

Affirm is a financing alternative to credit cards and other credit payment products. Affirm offers instant financing for purchases online. With Affirm, you can buy and receive your purchase now, and pay for it in fixed monthly installments over the course of 3, 6, 12, 18, 24, or 36 months.

Why buy with Affirm?

Here is what Affirm offers:

• Buy and receive your purchase now, and pay for it over 3-36 months. This allows you to split up the price of your purchase into fixed payment amounts that fit your monthly budget.
• You don't need to have a credit card to make a purchase.
• You may be eligible for Affirm financing even if you don't have an extensive credit history. Affirm bases its loan decision not only on your credit score, but also on several other data points about you.
• The application process is secure and instantaneous. Affirm asks you for a few pieces of information. After you provide this information, Affirm will notify you of the loan amount you're approved for, the interest rate, and the number of months you will have to pay off your loan, all within seconds.
• Affirm does not charge hidden fees. If Affirm approves you for a loan, Affirm discloses your loan terms before you make your purchase. You'll know exactly how much you'll owe each month, the number of payments you must make, and the total amount of interest you'll be paying over the course of the loan.

How does Affirm approve borrowers for loans?

Affirm will ask you for a few pieces of personal information – your name, email, mobile phone number, date of birth, and the last four digits of your social security number. Affirm uses this information to verify your identity, and to make an instant loan decision. Affirm will base its loan decision not only on your credit score, but also on several other data points about you. This means you may be able to obtain financing from Affirm even if you don't have an extensive credit history.

Completing A Purchase With Affirm By Phone

1. Download the Affirm app to apply for a virtual card or create an account of Affirm's website.
2. Once you've created an account, a 4-digit verification code will be texted to your phone.
3. Select "Vintage King" as the store that you'd like to shop at and enter the amount that you want to spend.
4. If you're approved by Affirm, you'll be given a virtual card (as pictured here). To prevent misuse, this virtual card is only valid for 24 hours.
5. Contact your Vintage King Audio Consultant by phone and provide them with the card number, CVV, expiration, and billing address in the same way you would with any other phone transaction.
6. Your purchase is now complete. Enjoy your new gear!

How does Affirm work?

Here are the steps in the Affirm loan application process:

1. Select to pay with Affirm at checkout.
2. Affirm will prompt you to enter a few pieces of information – your name, email, mobile phone number, date of birth, and the last four digits of your social security number. Please ensure that all of this information is your own and is consistent information otherwise you may experience difficulty with your checkout.
3. To ensure that you're the person making the purchase, Affirm will send a text message to your cell phone with a unique authorization code.
4. Enter the authorization code into the application form. Within a few seconds, Affirm will notify you of the loan amount you're approved for, the interest rate, and the number of months you will have to pay off your loan. Rates vary from 0-30% APR over 3-36 months depending on the seller and based on creditworthiness. Affirm will also state the amount of your fixed, monthly payments and the total amount of interest you'll pay over the course of the loan.
5. If you would like to accept Affirm's financing offer, click “Confirm Loan” and you're done.

Going forward, you'll get monthly email and SMS reminders about your upcoming payments. You can also set up autopay to avoid missing a payment. Your first monthly payment will be due 30 days from the date the merchant completes processing your order.

Does Affirm do a credit check, and how does it impact my credit score?

When you first create an Affirm account, we perform a ‘soft' credit check to help verify your identity and determine your eligibility for financing. This ‘soft' credit check will not affect your credit score. If you apply for more loans with Affirm, we may perform additional ‘soft' credit checks to ensure that we offer you the best financing options possible.

Why was I denied financing by Affirm?

Please contact Affirm via email at help@affirm.com or by calling 855.423.3729 for assistance on denials.

Why can't customers outside the U.S. use Affirm?

Regrettably, Affirm is available only to shoppers residing in the United States. Affirm hopes to expand its services to customers outside the U.S. in the future.

What are Affirm's fees?

Rates range from 0-30% APR and 3, 6, 12, 18, 24, or 36 monthly payments based on creditworthiness. Affirm discloses any required fees upfront before you make a purchase, so you know exactly what you will be paying for your financing. Affirm does not charge any hidden fees, including annual fees.

*Previous purchases ineligible for offer. Down payment may be required. For purchases under $150, limited payment options are available. Affirm loans are made by Cross River Bank, a New Jersey-chartered bank, Member FDIC.

Why is my Affirm interest rate so high?

When determining your annual percentage rate (APR), Affirm evaluates a number of factors including your credit score and many other pieces of data about you. If you finance future purchases with Affirm, you may be eligible for a lower APR depending on your financial situation at the time of purchase.

When considering Affirm, you should carefully evaluate the loan terms Affirm offers you and determine whether the monthly payments fit your budget.

How is interest on an Affirm loan calculated?

Affirm calculates the annual percentage rate (APR) of a loan using simple interest, which equals the rate multiplied by the loan amount and by the number of months the loan is outstanding. This is different from compound interest, in which the interest expense is calculated on the loan amount and also the accumulated interest on the loan from previous periods. You can think about compound interest as “interest on interest,” which can make the your loan amount grow larger and larger. Credit cards, for example, use compound interest to calculate the interest expense on outstanding credit card debt.

How do I make my payments?

Before each payment is due, Affirm will send you reminders via email and SMS that will include the installment amount that is coming due and the due date. You can also sign up for autopay so you don't risk missing a payment.

Please follow these steps to make a payment:

1. Go to affirm.com/account
2. You will be prompted to enter in your mobile number where you will be sent a personalized security pin.
3. Enter this security pin into the form on the next page and click “Sign In.”
4. You'll now see a list of your loans and payments coming due. Click on the loan payment you would like to make.
5. You can make a payment utilizing a debit card or ACH bank transfer.

How long does it take to get my money back in the event of a return?

You should see a refund from Affirm post within 3 to 10 business days, depending on your bank's processing time.

How do refunds work on items I return?

A refund will post to your Affirm account if we process your refund request. In the event that we issue you store credit instead of a refund, you will still be responsible for paying off your Affirm loan.

If you have already made loan payments or a down-payment, Affirm will issue you a refund credit to the bank account or debit card that you used to make the payments. You should see a refund credit within 3 to 10 business days, depending on your bank's processing time.

Can I amend my order after my purchase has been processed?

Unfortunately, you cannot edit your order after you have confirmed your loan.

Can I be approved for a higher loan amount if my purchase amount increases?

If you would like to add items to your purchase, you can apply for another loan with Affirm or use a different payment method.