Does Affirm Conduct Hard Credit Checks- Unveiling the Truth Behind Their Credit Assessment Process

Does Affirm Do Hard Credit Checks?

In the world of online lending, Affirm has emerged as a popular choice for borrowers seeking flexible payment options. However, many consumers are often curious about the credit check process when applying for an Affirm loan. Specifically, they want to know if Affirm performs hard credit checks, which can potentially impact their credit scores. In this article, we will delve into the question: Does Affirm do hard credit checks?

Understanding Hard Credit Checks

Before we address whether Affirm performs hard credit checks, it’s essential to understand what a hard credit check is. A hard credit check, also known as a hard inquiry, occurs when a lender checks your credit report to evaluate your creditworthiness. This type of credit check is typically performed when you apply for a loan, credit card, or mortgage. Hard inquiries can temporarily lower your credit score by a few points, and multiple inquiries within a short period can be viewed negatively by credit scoring models.

Does Affirm Do Hard Credit Checks?

Contrary to popular belief, Affirm does not perform hard credit checks when you apply for a loan. Instead, Affirm uses a soft credit check, also known as a soft inquiry, to determine your eligibility for a loan. A soft credit check does not impact your credit score and is often used by lenders to pre-qualify borrowers for loans or credit products.

How Affirm Determines Eligibility

Affirm evaluates your eligibility for a loan based on several factors, including your income, spending habits, and other financial information. By using a soft credit check, Affirm can quickly determine if you meet the basic requirements for a loan without affecting your credit score. If you are pre-approved, you can then choose the loan amount and repayment terms that best suit your needs.

Benefits of Using Affirm

The fact that Affirm does not perform hard credit checks offers several benefits to borrowers:

1. No impact on credit score: Since soft credit checks do not affect your credit score, you can apply for multiple loans without worrying about potential damage to your creditworthiness.
2. Quick pre-qualification: Affirm’s pre-qualification process is fast and straightforward, allowing you to quickly determine if you are eligible for a loan.
3. Flexible repayment options: Affirm offers various repayment plans, including interest-free options, to help you manage your debt more effectively.

Conclusion

In conclusion, Affirm does not perform hard credit checks when you apply for a loan. Instead, they use a soft credit check to pre-qualify borrowers and determine their eligibility for a loan. This approach offers several benefits to borrowers, including no impact on their credit score and quick pre-qualification. If you’re considering an Affirm loan, rest assured that your credit score will not be affected by the application process.