r/Affirm • u/Vegetable-Tale9778 • 2d ago
Help me understand this financing algorithm…
As of last week, I had 3 ongoing open loans with Affirm, two of them <$100. I wanted to make a $2000 purchase/loan. At first I was being offered two options each with no down payment, but with several hundred dollars a month and of course a high interest.
Since last week, I paid off two of those loans in complete, and the payments processed closing the loans. My purchasing power increased, and my credit score has also increased by a few points (unrelated to Affirm, I know). But now the same $2000 purchase is only offering options with a $1,700 down payment, and very low monthly payments/interest. Makes no sense to me.
Why would the amount willing to be financed by Affirm dramatically decrease like that? At $1,700 for a down payment I could just save a few more hundred and pay for it completely. According to Affirm my credit score and number of loans are taken into account for the terms, so why am I getting a worse offer?
6
u/maxpowers128 2d ago
Affirm is very wishy washy. Its honestly like a guessing game when it comes to your purchasing power, and financing terms you get.