Does Affirm affect your credit score?

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In Canada, choosing how you pay with Affirm could impact your credit score. The ‘Pay in 4’ option uses a soft credit check that won’t affect your score. The ‘Pay Monthly’ choice, however, involves a hard credit check, possibly lowering your score temporarily. To keep your credit in good standing, make timely payments and stick to your plan. Reach out via phone, text, or live chat if you have any questions.

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Affirm Credit Score Question

Does Affirm affect your credit score? DEBT INSIDERS I’m thinking of using Affirm for a large purchase but worried it might impact my credit. I want to know if it affects my score in Canada.

From: Anonymous Question
Location: Waterloo, Ontario (ON)
Category: credit rebuilding

Affirm Credit Score Answer

In Canada, picking your payment route with Affirm might give your credit score a little nudge. If you’re going with the ‘Pay in 4’ plan, you’re in the clear—it’s a soft credit check that doesn’t leave any mark on your credit score, and timely payments aren’t passed on to credit bureaus. On the other hand, if you opt for the ‘Pay Monthly’ plan, buckle up for a hard credit check, which might cause your score to drop temporarily. As with anything in life, timing is everything—stay on top of payments to avoid those pesky collections calls, which could tarnish your credit. Making payments on time and sticking to the plan keeps you in good financial standing. If you’re looking for strategies to rebuild your credit, consider exploring credit rebuilding.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

Affirm can affect your credit score in Canada. When you apply for financing through Affirm, they may perform a soft credit inquiry which does not impact your credit score. However, if you take on a loan and miss payments, that could lead to negative reporting to credit bureaus, potentially lowering your credit score. This is in accordance with general consumer credit practices outlined in the Bank Act, which governs financial institutions and credit practices in Canada (Bank Act, RSC 1991, c 46).

From: OSB Helper

Related Questions to Affirm Affecting Your Credit Score

Here are the top 5 frequently asked questions related to the impact of Affirm on credit scores, based on the provided sources and current trends:

1. Does Affirm affect my credit score when I apply?

No, creating an Affirm account and prequalifying will not affect your credit score[3][5].

2. Will using Affirm’s ‘Pay in 4’ plan affect my credit score?

No, Affirm’s “Pay in 4” installment plan does not impact your credit score[1][3].

3. Will using Affirm’s ‘Pay Monthly’ plan affect my credit score?

Yes, the ‘Pay Monthly’ plan may impact your credit score because it requires a hard credit check[1][3].

4. Does Affirm report my loan activity to the credit bureaus?

No, Affirm does not report loan activity to Equifax or TransUnion, but missed payments can negatively affect your credit score if sent to collections[1][3].

5. Will late or missed payments on an Affirm loan affect my credit score?

Yes, failing to make payments on an Affirm loan may result in your debt being sent to a collection agency, which can negatively affect your credit score[1][3].

If you have a question about debt see our debt questions or ask your own debt related question.

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