Yes, Affirm can affect your credit score. As of 2025, Affirm reports nearly all of its pay-over-time loans, including short-term Pay in 4 plans, to Experian and TransUnion, so your payment behavior on an Affirm account can raise or lower your score the same way any other reported loan would.
What Happens to Your Score When You Apply
Checking your purchasing power or creating an Affirm account triggers a soft credit inquiry. Soft inquiries let Affirm review your financial background without affecting your score, and only you can see them on your report.1Affirm Help Center. Affirm Credit Reporting Policy
If you accept certain financing terms, Affirm may run a hard inquiry instead. A hard inquiry appears on your credit report, is visible to other lenders, and according to FICO typically lowers your score by fewer than five points. It stays on your report for up to two years and falls into the “new credit” category, which makes up 10% of a FICO score.2myFICO. What’s in Your FICO Scores
Which Affirm Loans Now Appear on Your Credit Report
Affirm’s reporting policy changed significantly in 2025. Previously, only longer-term installment loans with interest were shared with credit bureaus, and Pay in 4 plans were excluded. Beginning April 1, 2025, Affirm expanded its reporting to include all pay-over-time products issued from that date forward, Pay in 4 included.3Affirm Holdings, Inc. Affirm Expands Credit Reporting With Experian to Include All Pay-Over-Time Products Virtually every Affirm loan you open today can appear on your credit report and influence your score.
Reporting is not uniform across the three major bureaus. Payment activity on loans issued on or after April 1, 2025, is reported to Experian; loans issued on or after May 1, 2025, are also reported to TransUnion.4Affirm Help Center. Understanding Credit Reporting Affirm does not report to Equifax, so the impact on your score may vary depending on which bureau a future lender pulls.
How On-Time Payments Help
Payment history is the single largest factor in your FICO score, at 35%.2myFICO. What’s in Your FICO Scores Each on-time Affirm payment adds a positive entry to your file and shows lenders you can handle structured repayment.
This matters most if you have a thin credit file, meaning few accounts or a short history. A reported installment loan with consistent payments gives scoring models another data point to work with, and over time that record can help you qualify for better rates on future financing.
How Late Payments and Defaults Hurt
Affirm does not charge late fees on any of its products.5Affirm Help Center. Support During Difficult Times The credit consequences are a separate matter. Once a payment is more than 30 days past due, Affirm may report the delinquency to credit bureaus.6Affirm Help Center. Late Payments A single reported late payment can cause a noticeable drop in your score because payment history carries so much weight.
A reported late payment can remain on your credit report for up to seven years from the date the delinquency began.7Consumer Financial Protection Bureau. How Long Does Information Stay on My Credit Report The same seven-year limit applies to charge-offs and collection accounts.8Office of the Law Revision Counsel. 15 U.S. Code 1681c – Requirements Relating to Information Contained in Consumer Reports
If you stop making payments entirely, Affirm may charge off the loan after it has been 120 days past due. Once charged off, the account can be sent to a third-party collection agency at any time, and you would work directly with that agency to pay the balance.9Affirm Help Center. Collections and Charged-Off Payment Plans A charge-off and a collection account are two separate negative marks that can appear on your credit report at the same time.
Other Score Factors an Affirm Loan Touches
Credit Mix
Credit mix makes up 10% of your FICO score and reflects the variety of account types you manage, such as credit cards, mortgages, auto loans, and installment loans.2myFICO. What’s in Your FICO Scores An Affirm installment loan adds diversity if your file is mostly revolving accounts like credit cards.
Length of Credit History
Account age makes up 15% of your FICO score, drawing on your oldest account, your newest account, and the average across all of them.2myFICO. What’s in Your FICO Scores Opening a new Affirm loan pulls that average down, which can cause a small, temporary dip. The effect is larger when you have only a few accounts to average against.
Amounts Owed
Amounts owed accounts for 30% of your FICO score. This factor is driven mainly by revolving balances like credit cards, but installment loan balances also play a role. Carrying a large balance relative to the original loan amount can work against you, and paying it down gradually improves this portion of your score. Using an Affirm loan to pay off credit card debt shifts the balance from revolving to installment, which can improve your credit utilization ratio.
Affirm Loans Before a Mortgage Application
Active Affirm loans can affect a mortgage approval. Mortgage lenders calculate your debt-to-income ratio by comparing your recurring monthly obligations to your gross income. Under Fannie Mae’s guidelines, any installment debt with more than ten monthly payments remaining must be counted toward that ratio, and shorter-term installment debt may still be counted if it significantly affects your ability to meet your obligations.10Fannie Mae. Monthly Debt Obligations
Because Affirm now reports every pay-over-time product, even a short Pay in 4 plan can show up on the credit report a mortgage lender pulls. Several active Affirm loans at once can push your debt-to-income ratio above what a lender will accept, so paying off existing Affirm loans and avoiding new ones in the months before you apply helps keep that ratio in range.
Fixing Errors Affirm Reports to the Bureaus
If Affirm reports inaccurate information, you have two routes to dispute it. You can file directly with Experian or TransUnion through their online dispute portals, which is typically the fastest option, or you can submit a written dispute to Affirm.11Affirm Help Center. Credit Reporting Disputes
Your dispute should include your name and loan number as they appear on the credit report, a description of the specific information you believe is wrong, an explanation of why it is wrong, and any supporting documents. If the account was opened fraudulently, include an identity theft affidavit or report.
Once a credit bureau receives your dispute, it generally has 30 days to investigate and respond.12Office of the Law Revision Counsel. 15 U.S. Code 1681i – Procedure in Case of Disputed Accuracy The bureau must notify you of the results in writing, and if the investigation results in a change, you are entitled to a free copy of your updated credit report.13Federal Trade Commission. Disputing Errors on Your Credit Reports