Affirm Financing:
Buy now pay later is an upcoming finance method of paying some discretionary purchases in America, Particularly online purchases. 39% of customers have used this payment method at least once. One of the fastest-growing companies in this field is AFFIRM (AFRM), which was established in 2012 by CEO Max Levchin, who also co-founded the company, which then became PayPal. It went public recently in January 2021 and now has a market cap of $13.9 billion. Let’s know about What credit bureau does affirm use?.
Introduction to the Credit Bureau
A credit bureau is an agency that collects data and provides information on the accounts of various creditors and provides that information to the credit bureau agency of that country. There are different names for the agency that collects the gathered data and is run by the government. The name in the United States is “Consumer Reporting Agency.” In the United Kingdom, it is “The Credit Reference Agency.” In Australia, it is the “Credit Reporting Body.” And in India, it is the “Credit Information Council.” The company hires this credit reporting agency for a fee because, based on a client’s credit score, you can determine whether this client is a good asset or a bad asset to the company, and you can also determine whether to give a loan to this customer.
What credit bureau does the affirm use?
Affirm needs a credit company as they give a loan to their customers for 6 weeks to 4 months, which the customers need to pay in a biweekly installment. In this process they use a credit company named Experian. This is what credit bureau does the affirm use.
How does the loan process work?
- They will do a soft check on your account, which will not affect your credit score it will only affect your credit score when you will pay late to the company they will report this to Experian and your credit score will decrease but will give the company an overview of how good of a customer you are before giving you loan.
- There is no limit of credit score disclosed by affirm but the better your credit score it will be better for you as good interest rates will be given to you. If your loan is still not accepted it will not be due to the factor of credit score but due to other factors.
- They do not take any fees rather than the late fees when you will miss an instalment.
How does affirm work online and in-store?
You can pay online from affirm by using the affirm website or the affirm app and affirm partner retailers like Adidas and best buy etc. gives the option of affirm loan on the checkout.
You can also pay from affirm in-store by using an affirm virtual card. You will just need to connect this card to your apple or google pay.
Affirm Benefits:
- It is the market leader in the buy now, pay later option that it provides to customers.
- Its mission is to give the customers help to buy things on EMI so that they don’t get into any unmanageable debt.
- And unlike other BNPL companies, it also gives you the facility to choose your payment option.
- Your annual percentage rate for an AFFIRM LOAN payment can also be 0% or between 10% and 30%.Depending upon your credit score the higher the credit score the more interest-free your loan can be. The standard credit score for an interest-free loan is 690-719 of affirm which comes in the very good range of tier 1.
What is the credit made of?
The few factors which are taken into account to make an individual credit are:
- A credit report is a report that contains information about an individual’s personal, credit, and account. The account was opened on the following dates: account number, account number, terms, and your payment history, such as the amounts borrowed or taken out. The number of creditors who have requested your reports, as well as court-awarded judgments, tax liens, and bankruptcies, are all considered.
- The credit score ranges from 300 to 850. Good credit scores will always help you in every financial aspect; for example, if you want to take out a health insurance and have a good credit score, you are more likely to get the insurance because the company will be assured that you will pay your financial commitments on time. FICO range is as follows:
How can you increase your credit score?
- Pay your bills on time.
- Keep your credit utilization rate low.
- Review your credit score and report on a timely basis.
Conclusion
So, affirm uses Experian for getting information of the customer to give them loan or credits. Having a good credit score helps you in many ways, like getting loans and low interest rates and so on. Therefore, keep a good score because big companies also prefer people who have good ethics and will never miss an installation so that the company is in burden.
FAQ’S:
- Does affirm affect your credit score?
Yes it affects your credit score on the way you pay.
- What lender does affirm use?
They use a cross river bank.
