If you’re reading this article, you’re probably already familiar with Affirm: a financial company that lets you buy something from ecommerce retailers now and pay for it over time. Shop for whatever you want (the company says), and then choose a payment option using the Affirm app to pay for your purchase in installments over the next few weeks or months. 

Buy now pay later (BNPL) services like these are becoming increasingly popular. In April 2023, LendingTree’s BNPL tracker showed that 44% of Americans expect to apply for a BNPL loan at least once in the next six months, with Affirm as the fourth most popular service. 

It certainly sounds appealing. But there are hidden downsides to using Affirm and similar BNPL services. You might incur extra fees, notice your credit score drop, or slip into bad financial habits — all of which we'll cover below in greater detail. 

If you’re trying to save money and avoid debt while still buying what you want, an Affirm alternative is likely a smarter choice. Stick around for the end of this article to check out our list of the top Affirm alternatives that can help you shop more responsibly. 

There’s more to services like Affirm than what initially meets the eye. Here are the biggest cons you might experience from using a BNPL company.

High interest rates

Companies like Affirm add interest fees to purchases. Affirm explains that your payment plan may include interest depending on the size of your purchase and where you’re shopping. You’ll never owe more interest than what you agreed to on day one. But even that amount can unnecessarily raise the amount of your purchase. Some BNPL loans can have interest rates as high as 30%. 

Extra fees

Interest rates aren’t the only additional fees you’ll have to pay. These companies commonly tack on other costs, too — such as late fees, convenience fees, and fees to open or close your account.

Poor spending habits

Using a service such as Affirm can lead to poor spending habits. You might be tempted to impulsively make frivolous purchases that you don’t really need. And if you aren’t careful, you can slide into debt almost without noticing: LendingTree statistics show that 42% of BNPL users have made a late payment. Services like Affirm can give you a false sense of security, and your financial habits might become lax as you fall into a habit of overspending. 

Effect on credit score

One final downside of Affirm is that it can affect your credit score for missed or late payments. While Affirm generally only does a “soft” credit check (which doesn’t affect your credit score like a hard inquiry would), the company itself states that if you decide to buy with their services, the following factors can affect your credit score:

• Making a purchase with Affirm
• Your payment history with Affirm
• How much credit you've used
• How long you’ve had credit

Late payments can negatively affect your credit score, causing it to go down and making it more difficult to apply for a mortgage or other loans.

Instead of a BNPL service like Affirm, look for an alternative that can better help you shop smart and save money as you do it. Here are the seven best alternatives to Affirm. 

1) Accrue Savings

If you’re looking for an Affirm alternative, there’s no better choice than Accrue Savings. Instead of BNPL, Accrue helps you save now and buy later. This is a much smarter decision for your bank account — and you’ll still get the product or service you want in the end!

Here’s how it works: Start by creating a savings plan, so you have a goal number and a specific purchase to work toward. As you deposit money to save for your purchase, brands will put cash rewards into your account to help you get there faster. Family and friends can contribute, too. Once you reach your goal, you can use a virtual debit card to make the purchase you’ve been working toward. 

With Accrue, there’s no debt, no credit, no interest, and no late fees. Your savings are safe until you’re ready to buy, helping you build good financial habits. 

Key features and capabilities

• No debt, no credit, no interest, no late fees.
• Speed up, slow down, or pause your contributions to find a pace that works for you.
• Receive cash straight into your account from brands, friends, and family.
• Use a virtual debit card to purchase from your favorite brands without owing anyone.
• Your savings are stored at zero cost in a secure, FDIC-insured account.

2) Sezzle

Another payment solutions platform that can serve as an Affirm alternative is Sezzle. You can use this BNPL company to make purchases from 47,000 brands. With the Sezzle mobile app, you can make a purchase and split the payment into four interest-free installments over six weeks. You’ll make these payments from your debit or credit card, and while there are grace periods for late payments, you can also be charged late fees. The company also has an upgraded option called Sezzle Up, which is reported to credit bureaus and advertised as a way to help build your credit (if you make payments on time). 

Key features and capabilities

• Split a purchase into four installments spread over six weeks.
• Build credit with Sezzle Up by making payments on time.
• Use it with 47,000 brands.

3) Splitit

Splitit aims to help consumers shop more responsibly with its BNPL installment format. Your payment method is your existing credit card; Splitit guarantees your purchase by placing a hold on your card while the full amount is outstanding. This pre-authorization lets you pay off the balance over time in multiple installments before interest adds up. Splitit will re-authorize the hold each month so your credit card company only charges you for the monthly installment payment rather than the full purchase amount.

With Splitit, you won’t run into any added debt, interest, or hidden fees. Use the credit you’ve already earned on your current credit card to shop while enjoying the rewards, transaction insurance, and protection against fraud that paying with your card offers.

Key features and capabilities

• Choose the number of monthly payments that work for you and your budget.
• Pay with your existing Visa or Mastercard.
• No new loans, additional interest, or additional fees.

4) Klarna

Klarna helps you save by comparing prices on over three million products from over 6,000 stores. Find what you want to purchase and then move on to checkout with Klarna’s BNPL app. Split the cost of your purchase into four payments, paid every two weeks after the first payment. Or, order products on a “trial” basis and only pay for what you keep. Klarna also has transparent credit options offered in partnership with WebBank to serve as a financing option for larger purchases. 

Key features and capabilities

• Choose from Klarna's free app, browser extension, or popup payment windows.
• Unlock points by joining the free rewards club.
• Pay for your purchase in four installments — one payment every two weeks.
• Get a product now, and pay in 30 days if you decide to keep it.

5) Uplift

Uplift works similarly to other BNPL websites. Shop directly on Uplift’s partner sites to find what you want to buy. Then choose a payment plan to spread the total cost out over multiple installments. You can pay off the purchase using an auto-pay functionality and won’t encounter any surprise fees (including late fees).

Key features and capabilities

• Choose the payment plan that works best for your budget.
• No fees, including late fees or pre-payment penalties.
• 24/7 customer service. 

6) Afterpay

Afterpay works both online and in-store with thousands of brands. Once you’ve purchased, pay over six weeks in four interest-free payments. You won’t owe additional fees if you pay on time. And while Afterpay does charge late fees, the company caps these fees so they don’t continue accumulating over time. Afterpay also allows you to earn rewards via the Pulse Rewards program when you make online payments on time. 

Key features and capabilities

• Pay for your purchase over six weeks in four interest-free payments.
• Late payments are capped.
• Earn rewards for paying on time.

7) PayPal

You may already be using PayPal for other purposes, but this company also has a BNPL feature that allows you to break up payments over the course of weeks or even months. Purchases from your favorite brands ranging in cost from $30-$1,500 are eligible for repayment. 

Key features and capabilities

• Choose from six-, 12-, or 24-month payment plans.
• $0 down payment: No sign-up fees or late fees, zero interest, or simple interest.
• Auto-pay is available.

BNPL companies aren’t always a smart choice. You might exceed your spending limit as you deal with interest, fees, and the temptation to buy more stuff. 

Instead, get smarter about saving and spending by using a solution like Accrue Savings. Accrue helps you save money (including cash rewards from brands) until you have enough in your account to buy what you’ve been working toward. Click here to sign up and set your savings goal.