Submitted by 2Amatters4life t3_z7el1u in LifeProTips
Don’t use affirm or similar services
So for those that don’t know buy now pay later services hurt your credit significantly. Every time you use a buy now pay later it will go on your credit report as a loan. The more times you do it the more new loans your report shows. Avoid these services if you can. Using a credit card you already have or pay in full is the better option.
Traditionally yes but using services like affirm show as a new loan every time screwing with your age of credit, credit usage, and more
Until you pay that shit off.
You need to use credit to get good credit.
Overuse is bad, yes. Just like overuse of credit cards is bad.
But this blanket statement is incorrect.
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I've used affirm a few times and never see another loan open on my mint mobile app or credit karma
Shows on Experian for me…
That's not how getting, and paying off loans work. Especially since your credit card will charge you interest over 4 monthly payments. And some of those affirm options are interest free if paid on time, making it the cheaper option as well.
It's about money management and making the best and most responsible use of your cash.
I’ve done this loads of times and I have great credit.
> buy now pay later services hurt your credit significantly.
Can you explain further?
Affirm loan on prime day over summer dropped my score almost 30 points and it has taken almost 6 months to get back to where it was… that was the only change on the report when this occurred. All revolving accounts are kept below 30% usage and if I would have just put it on my capital one card I would have been better off then using 0% interest affirm when I had payed it off in two months anyways
I used affirm for a mattress, and then for a gaming chair and it never showed on any of my credit reports. During this time I also opened two credit cards and my score only has increased.
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Idk if your point is valid, but an alternative is pay in four through PayPal. No credit checks.
I have great credit and use these all the time. It's nice to make big purchases and spread the payments out. There is no interest if paid in full in allotted time frame. It also doesn't hit your credit unless you sign up for premium or miss payments and it goes into collections.
It is only if you choose a loan with with an interest rate and it can only negatively impact you score if you have poor debt ratio or pay it late.
I've used affirm and other similar services a number of times. Never seen it on a credit report, nor has it affected my scores, for better or worse.
Jaded_Prompt_15 t1_iy678o3 wrote
Having a loan and paying it off on time only helps your credit...