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Why I'll never use Affirm again

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Re: Why I'll never use Affirm again

#41

Post by dimitrios1 »

Sohcahtoa82 wrote: post #17

I've never understood the appeal of using a product like Affirm, especially if you already have a credit card. Credit cards already give you a 30-day grace period before purchases start accruing interest. Using Affirm to extend that to 42 days seems inconsequential. It seems like their target customer are people bad with credit, which would make them predatory.

There are many purchases I have made with Affirm to take advantage of pay-over-time without interest. In these arrangements I imagine the product is giving Affirm a cut.

Also for bigger purchases, it's better than a credit card. I pay my Amex balance off every month, but during the pandemic I used Affirm to purchase a home gym setup, and paid it over the course of 6 months at a much lower interest rate.

They are definitely not predatory in my view, but I don't have the perspective of a low-income person anymore.

Re: Why I'll never use Affirm again

#42

Post by thr0wawayf00 »

gbtw wrote: post #23

Can someone explain to me, i live in a country that doesn't have credit scores, limits loans rates to something sane, why you would use a predatory payment lender that will balloon? Seems like a very high risk gamble especially if you have the money and even higher gamble if you do not have the ability to pay a loan.

The lending industry in the US is very powerful and regularly lobbies congress to reign in consumer protection action from government agencies like the Consumer Financial Protection Bureau, which often issue guidance to limit the offerings of many types of consumer lenders.

The sad truth is that looking poor in the US is culturally frowned upon, which often drives people to overextend their credit in order to fit in. People are quite often encouraged through advertising to improve their status through consumption in the short term at the expense of the long term. It's heinous, but that's America for you.

Re: Why I'll never use Affirm again

#43

Post by duxup »

root_axis wrote: post #36

Does Affirm actually report to the credit bureaus? It's my understanding that they do not, but perhaps I am misinformed.

Also it’s hard to know if they will.

I had a couple cases where in one situation bank and another a business claimed I owed them and it would show up on my credit report. I didn’t pay either.

North ever showed up.

Re: Why I'll never use Affirm again

#44

Post by Phrenzy »

Sohcahtoa82 wrote: post #17

I've never understood the appeal of using a product like Affirm, especially if you already have a credit card. Credit cards already give you a 30-day grace period before purchases start accruing interest. Using Affirm to extend that to 42 days seems inconsequential. It seems like their target customer are people bad with credit, which would make them predatory.

Some merchants will allow 6 months interest free through Affirm. I used them to finance my recent mattress purchase.

Re: Why I'll never use Affirm again

#46

Post by gmadsen »

Sohcahtoa82 wrote: post #17

I've never understood the appeal of using a product like Affirm, especially if you already have a credit card. Credit cards already give you a 30-day grace period before purchases start accruing interest. Using Affirm to extend that to 42 days seems inconsequential. It seems like their target customer are people bad with credit, which would make them predatory.

ive used them for a 12 month 0% interest. why not let them eat inflation for me, and I can put my money elsewhere

Re: Why I'll never use Affirm again

#47

Post by JumpCrisscross »

simulate-me wrote: post #37
aynyc wrote: post #24

Earlier quoted context omitted.

I don't have a comparison to other states or agencies. I have file 2 complaints to NY AG in my life and I got responds in about a week from the people I complained against. One was my very first landlord after college decades ago, the other was a tow truck company about 10 years ago.

That's nice that they cared, but they were under no obligation to respond. To me, this is an issue. We should have systems in place where people are guaranteed to have their issues remedied.

> they were under no obligation to respond

Mileage varies by state. The New York AG tends to make not responding very costly, sometimes debilitatingly so, for companies. A letter copying e.g. the Alabama AG is likely to be ignored.

Re: Why I'll never use Affirm again

#49

Post by dimitrios1 »

I don't view this situation as unique to Affirm in any way shape or form. I had a very similar situation with a chargeback scenario with my Apple card with fraudulent in-app purchases. The support infrastructure between bank - middleman - creditor is broken everywhere, and this is Apple and Goldman Sachs we are talking about.

Re: Why I'll never use Affirm again

#50

Post by skinnymuch »

op00to wrote: post #33
warent wrote: post #22

Earlier quoted context omitted.

I had poor credit from student loans and Affirm was very generous to me when other banks weren't. Affirm helped lay the foundations to rebuilding my credit. They've been good for at least my case

How was Affirm generous? Did they waive interest?

Poor credit means you’re not getting credit cards beyond measly ones
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