Affirm Personal Loans Review: No Hidden Fees, Potentially High APR

Affirm grants small personal loans that can help you fund purchases. Signing up for Affirm is easy: You can create an Affirm account either on its website or by selecting an Affirm online loan as your payment method when dealing with an Affirm online merchant partner.

Affirm works a little differently than traditional personal loans. You're granted purchasing power that can change as you make payments. You can also take out multiple loans at a time, but it will increase your minimum payments. We'll break everything down in this comprehensive Affirm personal loans review!

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Key Takeaways

• Affirm works differently

  than traditional personal loans by giving you purchasing power that shifts as you pay down balances. You can carry multiple loans at once, but your minimum payments will rise with each new one.

• Rates range from 0%

  to 36% APR, with the Pay in 4 option offering 0% across four payments. Longer loan terms come with interest, and smaller loans may carry origination fees.

• Stick with Affirm

  only if you qualify for Pay in 4 or can comfortably handle the APR. Otherwise a regular credit card will likely cost you less.

Summary generated by AI, verified by MoneyLion editors

Pros

• Affirm pay in 4 loans have 0% APR.

• It's a convenient way to get a quick and small personal loans.

• There are no late fees (although late payments will hurt your credit score).

Cons

• If you don't use pay in 4, APR can be as high as 36% (higher than most credit cards).

• Affirm charges origination fees on smaller loan amounts.

How to Sign up for Affirm

To sign up, you must meet the following requirements:

• Be more than 18 years old

• Have a valid U.S. residence or APO/FPO/DPO address

• Provide a valid U.S. mobile phone number

• Provide your full name, email address, date of birth and the last four digits of your Social Security number

👉 How to Apply for a Personal Loan Online

How Much Can You Borrow from Affirm?

On Affirm's subreddit, many users report having purchasing power in the thousands. The amount you can borrow will depend on:

• Your credit history

• Where you're shopping

• Your payment history (on time payments will earn you more purchasing power)

To find out how much you can borrow, go to Affirm's home page and click "Check My Purchasing Power."

What Are Affirm's APR Rates?

Affirm has a program called "Affirm pay in 4." This offers you a loan at 0% APR that requires you to pay it off in four payments. If you don't qualify for this program, or you need more time to make payments, you can request a longer loan, but you will have to pay interest.

Affirm's APR rates range from 0% to 36%. The terms for these loans start at 3 months, but can last longer than a year.

Who Is Affirm Best For?

Affirm is best for people who need to borrow money to make a purchase, but don't have a credit card. You should only use Affirm if you get approved and can afford the pay in 4 option. Otherwise, the APR rates can be astronomical.

Key Terms

• Annual percentage rate (APR): The yearly cost of borrowing money, expressed as a percentage. It includes the interest rate plus certain fees, giving you a fuller picture of what a loan actually costs. Source: Consumer Financial Protection Bureau.

• Personal loan: A lump sum of money you borrow from a lender and repay in fixed installments over a set period, usually with interest. Personal loans can be secured or unsecured. Source: Consumer Financial Protection Bureau.

• Buy now, pay later (BNPL): A short-term financing option that splits a purchase into smaller installments, often four equal payments. Many BNPL plans charge 0% APR if paid on time. Source: Consumer Financial Protection Bureau.

• Origination fee: An upfront charge a lender applies to process a new loan. It's usually taken from the loan amount or added to the balance and can raise the total cost of borrowing. Source: Consumer Financial Protection Bureau.

• Credit score: A three-digit number that reflects how likely you are to repay borrowed money. Late or missed payments can lower it, while on-time payments help build it. Source: Consumer Financial Protection Bureau.

Sources

• Consumer Financial Protection Bureau — What is a APR:

  https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/

• Consumer Financial Protection Bureau — What is a personal installment loan:

  https://www.consumerfinance.gov/ask-cfpb/what-is-a-personal-installment-loan-en-1567/

• Consumer Financial Protection Bureau — Buy Now, Pay Later:

  https://www.consumerfinance.gov/consumer-tools/buy-now-pay-later/

• Consumer Financial Protection Bureau — What is an origination fee:

  https://www.consumerfinance.gov/ask-cfpb/what-are-mortgage-origination-services-what-is-an-origination-fee-en-155/

• Consumer Financial Protection Bureau — What is a credit score:

  https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/

Photo Credit: Solis Images/ Shutterstock.com