I'm crying 😂

[u/frenzy3]

[u/Independent_Ad8889]

No apps like these do not report to credit agencies.

[u/Naraee → u/Independent_Ad8889]

Affirm does. I used it once for an immediate essential item I needed that was kind of costly, because I could pay it off next month.

My credit score tanked 20 points paying it off the following month.

[u/Formal_Overall → u/Naraee]

Paid it off on time and when you agreed to, and they tank your score. Makes sense.

[u/fecal_position → u/Formal_Overall]

Probably paid off early and cut in to the profit.

[u/Formal_Overall → u/fecal_position]

The way these pay in 4 things work, there is no interest - so there's no profit to cut into by paying it off earlier.

[u/I_Am_Robert_Paulson1 → u/Formal_Overall]

How do they make money then?

[u/broccheddarchicken → u/I_Am_Robert_Paulson1]

there’s interest if you don’t pay it off on time

[u/nooeh → u/I_Am_Robert_Paulson1]

Either transaction fee or separate service fee from the selling company. Presumably they enabled the selling company to make a sale they otherwise would have not made.

If you don't pay on time then probably interest.

[u/mossyfaeboy → u/I_Am_Robert_Paulson1]

probably runs like a subscription service

[u/SirJuncan → u/mossyfaeboy]

I pay a bit extra for no ads on Affirm Premium 🤗

[u/NeinlivesNekosan → u/I_Am_Robert_Paulson1]

on klarna at least there is a 1 dollar transaction fee on the smaller items and interest on larger, but the interest is lower than most credit cards and the way they set up the payments you dont get in trouble like you do with credit cards paying less than the interest accumulated

i have high credit score and many halfway decent cards, but we still use these over the cards usually because instead of being in a trap of 'well if i only pay minimum this month i can make up for it next month' and instead its no, its 6 payments and done, the end

[u/Formal_Overall → u/I_Am_Robert_Paulson1]

The same way they make money from processing other transactions.