Does Affirm perform a credit check? Does it impact my credit score?
When you apply for a loan through Affirm, a soft credit check is performed. This type of check does not impact your credit score, and it is used solely to help Affirm determine your eligibility for financing. A soft credit check is different from a hard credit check, which can affect your credit score and is typically used when applying for credit cards or mortgages.
How Does Affirm’s Financing Affect Your Credit?
While the initial soft credit check does not affect your credit score, your loan and payment history with Affirm can impact your credit score over time. Here’s how:
- On-time Payments: Paying your Affirm loan on time can help you build a positive credit history. This may improve your credit score as consistent, timely payments show that you are responsible with managing credit.
- Late or Missed Payments: If you miss payments or make them late, it could have a negative impact on your credit score. Like any loan, maintaining a good payment record is important for maintaining and improving your credit score.
Building Credit with Affirm
Using Affirm to finance your Lori Bed can be an opportunity to build credit as long as you manage your payments responsibly. Affirm reports your payment history to major credit bureaus, so on-time payments may contribute positively to your credit profile.
What’s the Difference Between a Soft and Hard Credit Check?
Soft Credit Check
- Hard Credit Check: A hard credit check happens when a lender checks your credit to make a final decision on a loan or credit application. This can temporarily lower your credit score.
In Summary
- If you accept Affirm’s financing offer, your loan payments may impact your credit score.
- Paying on time can help build a positive credit history, while late or missed payments may hurt your score.