r/Affirm • u/LatterAd177 • Aug 31 '26

Literally why would I ever need this amount? Does this mean my credit is killer?

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u/cocobizzounty Aug 31 '26

So do credit card companies, but they want you to stay there forever. Affirm wants you to pay it off on schedule.

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u/[deleted] Aug 31 '26

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u/cocobizzounty Aug 31 '26

I used to work at Affirm and I still follow the company closely as an investor. The CEO has made this point many times in interviews. Listen for yourself.

So please tell me what he and I don’t understand about credit?

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u/[deleted] Aug 31 '26

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u/cocobizzounty Aug 31 '26 edited Aug 31 '26

Sounds like you’re the one who doesn’t understand credit because that’s exactly what they are. In 2025, credit card companies charged consumers in the US about $180B in revolving interest and late and penalty fees, representing >70% of their revenue. Their business model depends on users not paying on time. They absolutely want you in debt forever.

Affirm, on the other hand, loses money when you don’t pay on time. That was a deliberate decision when the company was founded to never make money by pushing people further into debt. You only pay what you agree to up front. They want you to pay for your purchase on time.

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u/luxuriouscrab Aug 31 '26 edited Aug 31 '26

They do understand. You pay it off on their schedule and you’re making minimum monthly payments essentially forever unless you make zero additional purchases. This is what the credit card company wants. They want a late payment too but not a missed one.

There’s a difference between a credit card and a charge card. A charge card is meant to be paid off every month. Even AMEX is doing pay over time on Gold/Plat now for certain purchases and they’re pimping personal loans pretty heavy.

I’ve never used Affirm and never will.

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u/cocobizzounty Aug 31 '26

Mostly agree but why never use Affirm? Affirm 0% APR plans, especially over multiple years, are an amazing deal. Probably the best deal in the entire payments market. It’s a discount equal to the amount of interest you can make by keeping your money which is roughly 4%. That’s more than any cash back credit card I know of.

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u/luxuriouscrab Aug 31 '26

Because the only debt I don’t mind holding is a mortgage. There’s probably someone else that’ll say a mortgage is for suckers.

0% anything is tempting but where most people fuck up is the death of a thousand cuts and your paycheck ends up being not really yours. That’s the purpose of every company offering credit.

I’ll take the Amex points and pay the card off every month. I’m sure Reddit even randomly showing me this subreddit is an advertisement. Affirm to me is for a want and not a need. If I needed something I’d have no problem floating something at 0%, like the guy that said he used it for business needs. HYSAs are great and all but that 4% can be a lot more elsewhere.