Can You Pay off Early with the Affirm Financing (All You Need to Know)

Yes, you can pay off early with the affirm financing. Further, affirm does not impose any penalty on early repayment.

In fact, you save interest that has not been accrued at the repayment date. However, interest accrued to the repayment date has to be paid.

It’s important to note that early repayment is one of the facilities offered by affirm. Otherwise, traditional financing companies impose penalties as they have to lose an income that has not been accrued on the balance in line with the schedule.

However, the facility to make early repayment is available with the affirm financing without financial repercussions.

So, you can opt to pay more than your monthly installment. And every extra dollar you pay is deducted from the outstanding balance.

In addition to this, interest is accrued on the balance after deducting the repayment balance including scheduled payments and the excess amount repaid.

Affirm also sends you a payment reminder three days before the due date. However, if you want to stop this notification, it can be done by updating your email and mobile notifications settings.

It’s very interesting to note that you are not always required to make a down payment for the loan. Instead, it’s decided by the company depending on your financial credibility and credit score. So, you will only be required to make a down payment if required.

On the other hand, if you are not required to make a down payment, you will not be able to voluntarily pay. However, you can pay the amount in excess of the repayment (installment) without any penalty as discussed above.

Cost of affirm financing

The cost of affirm financing varies from 0% to 30% depending on the tenure of the loan and risk of default. 

Zero percent APR is offered by some affirm merchants. These merchants include Dyson, Adidas, and Peloton, etc.

Further, you may or may not be required to make a down payment for the financing. Likewise, a voluntary down payment is not available with the affirm financing.

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Further, if you miss the deadline for making a payment, it does not lead to additional interest costs or penalties. However, this behavior can impair your financial credibility.

It’s because late payments are reported to Experian. In addition to this, you may not be able to qualify for the affirm financing in your next application.

Affirm products

Affirm offers different products. The main products include virtual cards, and shopping/checking out via affirm. Let’s discuss these aspects.

1) Virtual card

Once your loan is approved via affirm website or app, the loan balance can be loaded on the virtual card. It works like a normal credit card. However, you can use this card only once. But, you are given a choice to use the card at the merchant of your choice.

Further, this card can be used in the store of your choice. So, it’s more like a loan and you need to plan your purchases.

It’s very important to note the validity of the card is only for 24 hours once it has been approved and issued. And there is no need to use the amount in full; it can be used in portions as well. You’ll only be required to pay the interest on the balance you’ve consumed while purchasing.

2) Affirm shopping

It’s one of the most prominent services provided by affirm. During check out at the shopping, you can use affirm payment option.

This system of payment is quick, flexible, and complete within minutes. At the time of check out, you are allowed to opt for different repayment plans.

You can select suitable options depending on your financing needs and convenience. It’s important to note that affirm has a partnership with the retail stores that make the process quick and safe.

Further, there are three ways to access personal loans via affirm. These ways include applying through a mobile app, partner store, and official website of affirm.

About affirm financing

Affirm is a public company listed on the NASDAQ stock exchange. The company was founded back in 2012 by Max Levchin. The company is headquartered in California.

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The mission of affirm is to deliver quality financial products designed to enhance the standard of human life. The company’s revenue has exponentially grown in the last few days which shows public confidence and the company’s stability in its operations and strategic management.

Further, the company’s partnerships with the e-commerce platforms like big commerce, Shopify, and ZenCart helps to enhance their operational capability and ability to manage strategic aspects of the company. It has helped the company to grow exponentially.

Likewise, quick financing, smooth operations, effective financing management, and other aspects make it convenient for the public to use their services and operations.  

There are various advantages of raising finance through affirm. These advantages include prequalification with the soft credit, quick financing via instant approval, and no related fees for the loan if you qualify for the zero percent APR. Further, it can help to enhance your credit score if you opt for a larger loan.


Affirm offers a facility to repay the loan before the due date. In fact, if you have paid the loan before the deadline, it will reduce interest costs. Further, you will not be liable to pay any penalty for early payment of the interest.

The cost of a loan can be different depending on the tenure and your financial credibility. You may be eligible to get financing without paying a down payment and at zero APR.

Whether you will be required to pay the down payment is determined by Affirm. However, if you are not required to pay a down payment, you will not be able to make a voluntary payment.

The affirm loan can be applied in three ways: financing via stores, affirm app, and the official website of affirm. There are various advantages of raising affirm financing that include instant approval, easy approval, lower fee, and help in improving credit scores.

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Frequently asked questions

Do I need to make a down payment for approved affirm financing?

Sometimes, you will be required to make a down payment. However, it’s dependent on affirm (the company) if they ask for the down payment. It’s dependent on your financial credibility and your credit score.

However, you may not be able to opt for a voluntary down payment as per company policy. Although, you can make early payment without incurring any penalty.

Is there a penalty on early payment for the affirm financing?

There is no penalty for making an early payment; you can make a payment anytime you want. The interest will be charged on the balance remaining outstanding. It’s one of the most important features of this financing.

Is it a good idea to raise finance via affirm financing?

There is a need to rethink if you need to purchase via financing. The reason is that it comes at an additional cost. Although there may be zero APR it brings default risk and many other worries. However, if you have decided to raise finance, it’s good to opt for affirm because it’s quick, flexible, smooth, easily understandable, and requires soft inquiry.

Does affirm financing help to build credit?

It depends on the loan you have opted for. For instance, if you have borrowed a loan under four installment payments, zero APR, or three months plan, it will not be reported to the credit bureau.

However, repayment compliance is reported to the credit bureau if the loan is for an extensive period. Hence, it helps in building credits core.

Enlist important features for the affirm financing.

Following are some important features to know if you intend to opt for affirm financing.

  1. APR ranges from 0% to 30% (varies on your default risk and financial credibility).
  2. The amount of the loan varies from $0 to $17,500.
  3. There is no minimum recommended credit score for affirm financing. However, the higher the credit score lower will be interest cost.