What is the minimum credit score for affirm?
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Affirm is a popular buy now, pay later (BNPL) service that allows customers to make purchases and pay for them over time. The platform doesn't have a fixed minimum credit score requirement, but your credit history plays a role in determining whether you’re eligible for financing, as well as what kind of terms and interest rates you might receive.
Credit Score Requirements for Affirm
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Minimum Credit Score: Affirm doesn’t require a minimum credit score, but they do typically look at your creditworthiness when you apply for financing. Most people who qualify for Affirm have a credit score in the mid-600s or higher, but it’s not a hard and fast rule.
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Soft Credit Check: Affirm performs a soft credit check when you apply, meaning that it won't impact your credit score. A soft credit check provides Affirm with some information about your credit history, but it’s less invasive than a hard inquiry, which usually affects your score.
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Approval Based on More Than Just Credit Score: Affirm considers other factors besides your credit score when approving loans. These may include:
- Income
- Payment history (e.g., how well you've paid off previous BNPL loans or credit accounts)
- Debt-to-income ratio
- Other financial factors like your current debt levels or whether you have a bank account.
How Does Affirm Decide Your Terms?
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Higher Credit Score: If you have a higher credit score, you may qualify for better loan terms, such as:
- Lower interest rates
- Longer repayment periods
- Higher credit limits
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Lower Credit Score: If your credit score is lower, you might still qualify for financing through Affirm, but you may face:
- Higher interest rates
- Shorter repayment terms
- Lower borrowing limits
Does Affirm Approve People with Bad Credit?
Yes, Affirm is known to approve people with less-than-perfect credit. Even if you have a poor credit score, Affirm may still approve you for a loan, but the terms may be less favorable. This makes Affirm a useful option for individuals with fair to poor credit who may struggle to get approved for traditional financing.
Tips to Improve Your Chances of Approval with Affirm
- Check Your Credit: While Affirm doesn’t have a specific credit score requirement, knowing your credit score can help you understand where you stand. If your score is low, consider taking steps to improve it before applying.
- Pay Off Existing Debt: Affirm will look at your overall debt level, so try to pay off any existing loans or credit card balances to improve your chances of approval.
- Use a Steady Income: Having a steady income can improve your chances of being approved, even if your credit score is low.
- Use Affirm for Smaller Purchases: If you’re applying for Affirm financing for the first time, consider using it for smaller purchases, as this can increase your chances of getting approved.
Conclusion
While there is no specific minimum credit score required for Affirm, your credit history, income, and other financial factors will influence your eligibility and terms. Affirm’s flexible approach to financing makes it a viable option for many consumers, including those with less-than-perfect credit. However, keep in mind that the better your credit, the more favorable your loan terms are likely to be.