Affirm How It Works | Buy Now Pay Later App
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- Опубліковано 4 лип 2023
- How does the buy now pay later app Affirm work? Buy now pay later (BNPL) provider Affirm allows eligible shoppers to buy now and pay later with no interest on short term loans, no credit checks, and no fees when they pay on time. The service is available at thousands of retailers around the world through the affirm app.
Shoppers who make purchases with affirm can choose to have their payments split into four instalments with an initial down payment against the purchase, then you have a six-week period to make your remaining payments or choose to pay monthly over 12 months. Affirm doesn’t specify a minimum required purchase amount. However, you may be subject to purchase requirements set by the retailer you’re buying from.
To use the service online, you choose Affirm as your payment method at checkout. You can create an Affirm account instantly to make your first payment and complete the checkout process. After you check out, the items that you ordered will be shipped to you by the retailer. To use Affirm in physical stores, you need to download the Affirm app and create an account, then tap the “Card” tab in the app. This allows you to create a digital Affirm card that you can add to Apple Pay or Google Pay. You can then use mobile wallet app to make your purchase.
After you make a purchase, you can log into the Affirm app to see when your next payment is due and in what amount. You can pay Affirm using a debit or credit card, either manually through the Affirm app or by setting up automatic payments. Affirm generally offers 0% interest financing, but there is a chance that you may have to pay a higher rate. Depending on your credit and eligibility, your annual percentage rate (APR) can end up being 0%, or 10% to 30%. A down payment may also be required for some purchases.
You can use Affirm in-store with the Affirm virtual card. When you’re approved for BNPL with Affirm, you can choose to have the amount loaded onto a virtual Visa card that works just like a credit or debit card for making purchases. To use your card in-store, you can access it from the Affirm app or link it to Apple Pay or Google Pay.
#Affirm #AffirmCard #buynowpaylater #bnpl #creditcard #debt #bussiness
*None of this material is meant to be construed as finance or investment advice, it's for education purposes only. The video is accurate as of the posting date but may not be accurate in the future. *
Affirm and afterpay seem to be the main players in BNPL
Yeah in the US anyway 👌
Klarna is pretty dope too.
@@MyMelanin I’ll have to look into it. Is it similar?
@@kevjonas523 it is. In comparison, I’ve noticed more luxury brands on there.
I’ll be looking into Klarna
Hey I bought a ps5 on Walmart is took a down payment from me of abt 80 I went back to the merchant it still said I had to pay 538 so I closed it the payment went thru for 80 so I went to affirm it says Purchase Amount Pending so does that mean I have to wait for the pending then the ps5 will get shipped or it didn’t get shipped at all?
It should be shipped with only the first payment. Then you pay affirm back over time. Walmart will get full payment from affirm. Does that make sense?
Interesting idea getting to choose the repayment options
Yeah seems quite flexible - good to have choice
Do you know if you can transfer a balance from a credit card to any one of these pos loan products ie affurm, klarna, after pay?
You might be able to if the credit card is linked to Apple or Google pay
Can you explain the version with interest ? It says that 12 month has 14.99% apr at $382, does that mean that if I miss a payment within the 12 months that is added to the total every time a payment is missed?
It’s an annualised interest applied if you miss any payments based on what you owe
I opened the app but can't seem to find my virtual card will still get a physical card?
Yeah you should be able to get the virtual card. Here’s how to do it on their website: helpcenter.affirm.com/s/article/affirm-virtual-card#:~:text=You%20can%20request%20a%20virtual,like%20a%20standard%20credit%20card.
Thanks for the info!
No worries 🙂
We only have afterpay in Australia but this looks alright
Yeah affirm not in Australia and it seems like afterpay has the market wrapped up.
For exemple if i’m planning to buy for 1200$ on 12months, it says 111$/mo… will the first month also be 111$? Or how much is the down payment
The down payment is paid upfront then the ongoing payments is the remainder calculated by affirm. Depends on the retailer if they want a down payment or not. This is for the monthly payment option, you could also look at the pay in 4 option with no interest.
Doesn't a Credit Card do the same thing!? I don't get it.
Yeah it’s similar to a credit card but with more flexible payments. Personally I just use a credit card with points associated with it.
What if the website is not on the app how do I put it on Apple Pay to just use
If the shops website doesn’t accept affirm as a payment method then it won’t work.
Why does my app not have any of the features
Which country are you in?
So interest free with 4 payments but longer is with interest?
Yeah that’s it
does this have a limit on the amount you can spend per month ?
Yeah it does. It should be shown in your account clearly. Their website says up to $30k if you have a proven track record.
The question I’m having is it worth buying a NZXT prebuilt PC monthly payment with affirm?
Up to you really. If you’re going to buy it anyway with cash it might be better to use affirm to spread the payment out and keep money in a savings account to earn some interest. Just make sure you don’t miss any payments and always have the cash to pay it off.
I am glad you asked this question
Can I shop at multiple places and use this?
Yeah can buy at multiple stores with it 👍
Does Affirm still report the loans to Experian as a consumer finance account?
Yeah I’ve heard they report and it affects credit rating now.
@@SageFinance Thank you, don’t want anymore consumer finance accounts negatively affecting my scores.
@@BrunoRatedR Yep smart choice. Keep it good for a mortgage on a house 👍
If you know how money works this not for you but if you do and manage your finances well this is amazing.
Yeah exactly - it’s all about having self control and knowing yourself. Do you use it?
it says i have a balance of 1500. I dont understand, is it credited to me or does that just mean i can fill it with 1500 of my money. i really dont understand what Affirm does. If i go to buy something using Affirm will it do i need to put money on it first? or will it just deduct from my 1500 and i repay.
That would be how much you can borrow / spend before repaying.
@@SageFinance ty
No worries 👍
Very easy to use these apps and get into consumer debt
Yeah always need to be onto the repayments so no interest is applied. Could always just use a debit card
So that’s the trap
@@SageFinanceI have a question? If a debit is used can still be effected “credit wise” you if the card is closed. Due to them having your last 4 digits
Tbf it's like that with credit cards too, so...
Thats why you buy one thing at a time and be smart about it dont just go really crazy also affirn wont actually let you take out a bunch of loans you have limits
Does it give you a refund if you cancel an order ??
That would be up to the retailer I imagine not affirm as the lender. Do you need to cancel?
zip doesnt need social why does this need it
Social for what?
@SageFinance Affirm ask me my last 4 digits of my social number but Zip doesn't need that
@@julian-vanilla8379 They must have some extra security or credit checks perhaps
So basically imma get my ps5 when I give the down payment not when I pay it off
Yeah that’s exactly right. You get the item with the first payment they pay the rest off over time
Yo did it all go well? I'm about to buy one as well but just wanted to check if it all went smoothly
Seems everyone wants a PS5 😂 I’ve got one and a series X but play PS5 more to be honest
Has a few good features that afterpay doesn’t have which are useful 😊
Yeah they’re both quite good
I personally prefer my items all paid up front but sometimes shit happens.
Like I got more expenses more than usual and no money due to long check holds even if its a government check…so I had to make an account for affirm. Starting to think it was a bad idea though.
Is it making you spend more than normal? If so probably not the best. It’s handy if you can keep more more in a savings account for longer but comes down to resisting temptation to spend mainly.
Good to see you back at it 🙌
Thanks mate
Question: Lets say I apply and get approved for $100 with 4 monthly payments of $25 with a $25 down payment.
With the $75 debt remaining would it be possible to pay off that $75 next month?
Or would I be locked into making 1 payment for 4 months?
I’m pretty sure you can pay it back earlier but you might as well pay it off over time and keep the extra in a savings account earning interest.
There is definitely interest
The pay in 4 option is interest free but the monthly instalments is not. Check out their website here: www.affirm.com/how-it-works
Yeah, I think I’m just gonna pay the full upfront price for my item
Smart choice 👌
WHY does it say 1094$ "Due Today" when it says its split up for 36 months...????
Sounds odd - how much was the total payment for the product?
@@SageFinance I am trying to purchace an iPhone 15 and they gave me a few options to pay using affirm loan I chose 36 months to pay 15$ per month total = 1600$...?? any clue...?
Some purchases require a down payment
Is it a loan or the pay in 4 option? The loan would have interest applied and would likely be more.
@@SageFinance dont worry , I already got my iPhone 13 with T-mobile instead.
Will this affect my credit utilization?
I think organisations and banks would be looking at buy now pay later much closer with credit scores in the future. I don’t believe it affects the score now but wouldn’t be surprised if it does in the future.
@@SageFinancenah it does affect credit, before it didn’t. It shows up as a loan on your credit report.
@@gullyblanchard5750 Has it recently changed?
@@SageFinance nah I believe since around at least 2020 buy now pay later companies report everything on your credit report. It’s in their terms of service. I did affirm a couple times last year and it did in fact show up on my credit report. The loans are calculated based on your credit. You’re taking out a personal loan.
@@gullyblanchard5750So affirm still does report their loans to Experian? Because I stopped using it when I noticed they get reported as consumer finance accounts.
I think I just found a method
A method for what?
We know how it works. Same one money changer game since the beginning of human kind.
Personally I’m not a fan of all these BNPL apps but lots of people seem to be consumer addicts and use them.
these people are sorry no real humans to speak to just ROBOTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ok?
ROBOTS ALL OVER YOU TUBE JUST SHUT UP
What? Haha
I wonder if affirm is better than Klarna
Afterpay and affirm seem to be the most popular so they must be decent
affirm chat support is now available
Nice! Is it any good?
yeah actually i never experience today to be transferred on other agent
btw they are open only from 9am to 5pm EST
@@sandralapasta Good to know! What did you need them for?