Despite the ubiquity of credit, few consumers know enough about its complex terminology and cost structure to make fully informed decisions. And most credit providers take advantage, charging a constellation of fees in order to maximize profits. The result is that in 2016 alone, American consumers paid more than $90 billion in fees.
At Affirm, we believe consumers should be able to benefit from a more honest and transparent form of credit. We quote customers a fixed price for their credit up front, so that when they sign up for a loan, they know exactly what they will end up paying. No matter what happens after they confirm their loan, they’ll never owe us a penny more than the amount they initially chose.
This FAQ is designed to clarify some of the subtleties around credit (including interest), how it affects consumers, and how Affirm is different.
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