An Innovative New Way to Purchase Items Online & Build Credit Without Using a Credit Card

With credit card debt reaching historical highs, some debt experts are encouraging consumers to ditch the credit cards and just use cash. Credit card debt can be a vicious thing. Interest rates often run very high and compound, the credit card itself may have an annual fee, there may be late fees, deferred interest, etc. Yet credit does a few very important things for consumers. In order to build credit and have a credit history, you have to use credit.

You also need credit in order to purchase many items and services—especially online or while traveling. Up until now, the options for building credit and buying online have been limited largely to using credit cards. Now there is another way. A great alternative to using a credit card to build credit and purchase items online is to use a company called Affirm.

Affirm offers affordable financing at competitive interest rates for online purchases. I used Affirm to purchase some equipment for my business and some Christmas gifts online this year. I received a better interest rate than my credit card offers (about 5% lower than my credit card offers) and it is simple interest not compounding so I only pay interest on my purchase–not interest on my interest!

Another great thing about Affirm is that the financing I used to buy online is not considered revolving credit. Revolving credit weighs heavily on your credit score. The more revolving credit debt you have, the lower your score will be. For this reason, if you need to purchase items online, I would really recommend using Affirm—especially leading up to and around a time when your credit will be pulled (such as when thinking about purchasing a home, a car, etc.).

Affirm also takes the safety and protection of its customers’ information very seriously. When I used them to purchase items online I received text messages and emails to verify the purchases. They will keep all information secure and offer forms of protection similar to credit cards (the ability to dispute, return, refund, etc.).

I found it interesting to read what the CEO at Affirm had to say about this purchasing option…

“The financial industry has managed to avoid significant disruptive innovation since the mid-90s, and we are working hard to change that. Our first goal is to bring simplicity, transparency, and fair pricing to consumer credit. We are just getting started and have much work to do.”

Max Levchin
CEO, Affirm

I was very impressed at the ease of checking out using Affirm. When buying from Wayfair, the checkout had the option to choose Affirm as the payment method.

I then quickly set up an account at Affirm. They sent me a text message to confirm my identity and they ran a ‘soft credit check’ (does not affect credit score) and I was approved. I chose which payment option I wanted for the purchase.

I choose the 3 month option because I’m planning to pay this loan off soon.

When I checked out at OneKingsLane there was a different process I used. I signed into my Affirm account and selected One Kings Lane and typed in the checkout amount I needed to cover my purchase. Then clicked ‘get card’.

I was then given a credit card number to use on OneKingsLane to check out. Again, through Affirm I was able to purchase items online with a much lower interest rate than my regular credit card offers. At this point I was actually really excited at the ease of use, the security measures taken, the quick loan approvals, and fantastic interest rates and benefits I was enjoying. Affirm is awesome.

They offer financing for the following key purchase categories and more:

Home Furnishings & Appliances
Apparel and Accessories
Automotive Enhancement and Repair
Travel
Consumer Electronics

Here are just a few of the current online stores/companies that Affirm works with. There are many, and they are constantly adding more.

One Kings Lane
Wayfair
CheapAir
EventBrite
Owlet

After checkout, stores can process and ship your order immediately (my items are already on their way). Affirm will keep in touch and remind you of any upcoming payments. You repay Affirm however you’d like – debit card, bank transfer or personal check.

I was very impressed at all of the options Affirm offers in online financing. I’m excited there is a company out there innovating consumer credit options and making the process of purchasing online items more consumer friendly. I hope this Affirm review was helpful and that you get to experience this innovative purchasing option. You can try them out here.