If you can’t afford to pay for a large purchase all at once, use a buy now, pay later platform like PayBright to finance your investment without accruing credit card debt. PayBright has since rebranded to Affirm following the latter’s acquisition of the former in January 2021.
Buy Now, Pay Later companies allow you to finance large purchases and make bi-weekly or monthly payments without affecting your credit score. Most charge no interest or fees for short-term, bi-weekly payment plans.
This Affirm review covers everything you need to know about the company, including how it works, the plans offered, who is eligible, its pros and cons, and if it is worth it.
Affirm Summary
Affirm (Formerly PayBright)
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Interest rates
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Fees
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Availability
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Payment plans
Overall
Summary
Buy Now, Pay Later companies like Affirm (formerly PayBright) help you finance large purchases without accumulating credit card debt, often with no interest or fees if you choose short-term repayment plans. Affirm is available at over 7,000 participating merchants in-store and online, such as Apple, Wayfair, Samsung, and Endy. Affirm can be used to break down the huge cost of a large purchase into smaller payments. Choose between monthly installments and 4 interest-free payments every 2 weeks. Larger purchases over 6 to 60 months have interest rates ranging from 0% and 29.95% APR (Annual Percentage Rate), depending on your creditworthiness. Processing fees may also be applied.
Pros
- Over 7,000 partner retailers
- Easy to sign up
- Flexible payment plans
- No service, prepayment or hidden fees
- Does not affect your credit score
Cons
- No option to choose payment plans
- Monthly processing fees of $1-$4
How Affirm Works
To use Affirm, shop online at participating stores and select Affirm as the payment option at checkout. Under the “payment options” section of the checkout, you should see a “Pay with Affirm” option.
Once you select that, enter your mobile phone number, Affirm will send you a PIN to confirm, and once you do, enter your details and get set up with an Affirm plan.
Confirm your payment plan, and you’re done!
If you pay in 4 bi-weekly installments, your credit or debit card will be charged for the first payment; then, the remaining three payments will be charged to your card every two weeks.
Depending on your choice, your payment plan will either be interest-free or range from 0% to 29.95% APR.
Types of Affirm Payment Plans
Affirm offers two payment plans:
Pay in 4 – for purchases under $1,000, and customers can pay in 4 bi-weekly payments. This plan has 0% interest and no processing fees.
Equal monthly payments – this plan has a term length of 3 to 60 months. Interest rates range from 0% to 29.95% APR.
Some Affirm plans include a small monthly processing fee.
To find out the available plans for Affirm retailers in Canada, contact each merchant directly or check their website.
How to Qualify for an Affirm Payment Plan
To qualify for an Affirm application, you must:
- Be 18+ and reside in Canada
- Have a credit payment history
- Have a Canadian Visa or Mastercard credit or debit card
- Have a Canadian phone number able to receive SMS
- Meet the minimum cart size needed to use Affirm at checkout
What You Can Finance with Affirm
Over 7,000 retailers in categories like fashion, electronics, and home & furniture use Affirm as a payment option at checkout.
Popular retailers that accept Affirm include Apple, the Bay, Wayfair, Browns Shoes, the Source, and Samsung.
You can view the full list of retailers here.
Affirm and Your Credit Score
Signing up for an Affirm account and using the Pay in 4 payment plan does not affect your credit score.
However, the monthly payment plan is recorded and will affect your credit score, as with any other long-term financing plan.
Why Affirm Is Legit
Yes, Affirm is legit. The company has an average rating of 4.6 on Trustpilot, with over 7,500 reviews and over 2,000 reviews on Google.
Many major retailers like Apple, Samsung, and Steve Madden accept Affirm as a financing option.
And in 2017, Affirm won the award for Canada’s Top Fintech Firm.
Pros and Cons of Affirm
Over 7,000 retailers in Canada have partnered with Affirm, making it easy to finance large purchases.
If you use the Pay in 4 plan, you will not pay any interest or processing fees.
Affirm offers flexible payment plans for larger purchases, from 3 to 60 months, and it is easy to sign up and get started.
With either payment plan, there is no option to split your purchase and pay part of it upfront and the rest with Affirm – the total amount of your order is paid with Affirm.
When selecting the Affirm option at checkout, you cannot choose between the monthly installments and Pay in 4 options. If it’s a small purchase under $1,000, you must choose the Pay in 4 plan.
Depending on how many months you take to pay off your purchase, the processing fees can add up.
On top of interest, you’ll pay monthly processing fees ranging from $1 to $4. For example, if your plan lasts 60 months, you could be paying up to $240 in processing fees.
Finally, Affirm does a hard credit check on the monthly payment plans, so it could show up on your credit report and can affect your credit score.
Affirm vs Afterpay
Afterpay is another shop now, pay later platform that is always interest-free. It is available in Canada, the US, Australia, New Zealand, and the UK.
With Afterpay, purchases are split into four payments over six weeks. Afterpay provides a spending limit that gradually increases each time you make payments on time.
To sign up, you just need to provide your email address, phone number, date of birth, and have a debit or credit card handy.
Afterpay does not accept 100% of orders. They check to ensure you are a responsible shopper and can pay them back. When approving orders, they consider things like how much money you have on your card, how much you have to repay, and the number of orders you have open with Afterpay.
There are no fees if you pay on time. If you miss a payment, AfterPay will pause your account until you can make all payments.
Here are some personal loan options you can use to finance large purchases. Two top sites for comparing loan rates are LoansCanada and LoanConnect.
Why Buy Now, Pay Later Plans Are Worth It
Buy now, pay later plans can be worth it, but it depends on the plan and your financial situation.
If you choose a biweekly payment plan like Affirm with no interest or processing fees and know you will be able to pay it off by the end of the term, then in most cases, it is worth it.
However, if you can pay the full amount immediately, you should pay it upfront to avoid processing fees, interest charges, or late fees.
Experts recommend using buy now, pay later plans only for necessary or large expenses, like electronics, a new mattress, or furniture. It’s not a good idea to risk going occurring debt for non-essential purchases.
If you struggle to pay your bills on time or don’t have a lot of money saved, it’s best to avoid BNPL plans, as you can be charged late fees or high-interest rates if you can’t pay on time.
Affirm Canada FAQs
Other buy now, pay later companies like Affirm include AfterPay, Sezzle, and Affirm. These alternatives are available in Canada and allow you to split your purchase into multiple payments with little to no interest.
Affirm is free to sign up with. The Pay in 4 financing plan has no interest or processing fees, but the monthly financing plan has an interest rate ranging from 0% to 29.95% APR plus monthly processing fees from $1 to $4.
If you miss a Pay in 4 payment, Affirm system will automatically reschedule the payment on your debit or credit card at a later date. Check your Affirm account to view the updated payment schedule.
If you miss an Equal Monthly payment, Affirm will automatically reschedule the payment for the following Friday or every other Friday until the payment clears.
Affirm does not charge any late fees; however, missing a payment will prevent you from using Affirm in the future.
Affirm makes money in three ways. They charge interest on monthly payment plans, take monthly processing fees, and charge merchants fees.
Affirm takes money from your Visa or Mastercard credit or debit card on your scheduled payment date, either bi-weekly or monthly. They do not accept prepaid cards, e-transfers, Amex, PayPal, or online bill payments.
Yes, you can pay Affirm early with no penalty. You can make partial payments or pay off your remaining balance at any time. To make payments early, log in to your Affirm account, select the plan you want to pay off, and select “Make a Payment.”
Affirm assigns your spending limit based on certain factors to determine that you can pay off your loan. Thus, you cannot increase your spending limit.
The signup and approval process for Affirm is fast and does not affect your credit score. To qualify, you must be a resident of Canada and be 18 years of age or older, have a credit payment history, have a Visa or Mastercard credit or debit card, have a Canadian phone number able to receive SMS, and meet the minimum cart size needed to use Affirm at checkout. You can look on each retailer’s website to see if you prequalify for Affirm.
Affirm only requires a soft credit pull for the Pay in 4 bi-weekly payment plan, which will not affect your credit score. However, they do a hard credit pull if you sign up for the monthly payment plan.
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