Affirm is a leading buy-now-pay-later (BNPL) service that allows you to finance your travel purchases over time. It is a great option if you don’t have the cash upfront but still want to book your trip now.

With Affirm, you can purchase airline tickets, hotel stays, and vacation packages and spread the cost into manageable interest-free monthly payments.

There are no hidden fees, and Affirm will only run a soft credit check to approve your loan, so it won’t hurt your credit score.

But is this a green light to hit the “Book Now” button? Learn below how Affirm works for booking flights, its pros and cons, and other financing options you should consider.

Booking flights and accommodations with Affirm is a simple process:

Go shopping

Shop for flights on the website of a participating airline, travel agency, or online booking service. American Airlines, Delta, CheapOair, and Kayak are among the many companies that offer Affirm as a payment method.

Click “Add to Cart” and proceed to checkout.

Pay with Affirm

From the list of payment methods, select “Affirm” and click “Continue.” You will be redirected to the Affirm website, where you will provide a few pieces of information, including your:

• Full legal name
• Phone number
• Email address
• Last four digits of your social security number

Affirm will perform an eligibility check and (if approved), provide you with a loan offer, including the APR, terms of repayment, and the total amount to be paid by you over time.

Decide on a payment plan

If you agree to the loan terms, pick a repayment plan that suits your budget. You can choose from:

• Four interest-free payments paid every two weeks
• Fixed monthly payments for three, six, or 12 months at varying interest rates

The APR ranges from 0%-36%. Confirm the loan to finish the checkout process, and you’re all set. 

Affirm will transfer the funds directly to the merchant, and you will receive a confirmation email with your loan details. You need to make monthly payments through Affirm’s secure website or mobile app until you have paid off the balance. 

Alternatively, you can set up AutoPay to avoid missing any deadlines. There are no late fees with Affirm, but late payments may affect your credit score.

Affirm’s expanding network of merchants, huge customer base, interest-free financing options, and affordable monthly installments make it a great choice for booking flights. Other benefits include:

You can travel before you pay

Travel expenses can sometimes be too high for a one-time payment. Plane tickets, hotel stays, rental cars, and other expenditures can add up to a hefty amount. 

Forking over all those dollars right away can throw a wrench in your budget. With Affirm, you can book your trip today and pay later with monthly installments that fit your unique needs.

It’s a secure way of booking travel accommodations

Affirm’s secure platform ensures that your sensitive data is safe. The company uses the best security practices in the industry, including encryption and fraud detection technology, to protect you from identity theft and other malicious activities.

Affirm hires trusted companies to carry out thorough third-party security audits. The platform is a PCI DSS Level 1 Service Provider for processing cardholder data and holds SOC 1 and 2 reports aligned with AICPA (American Institute of Certified Public Accountants) standards.

It’s quick and easy to book flights

Booking flights and travel deals with Affirm is simple, fast, and efficient:

1. Fill in your personal information to create an Affirm account.
2. Choose a repayment plan that works for you.
3. Confirm the loan.

Your flight purchase is finalized within seconds, and then you can be packing your bags and heading off for a relaxing vacation. Use the Affirm app to manage your payments and get timely reminders when a due date is approaching.

Using Affirm isn’t all rosy, though. Unsurprisingly, 57% of consumers who use BNPL platforms like Affirm regret it later due to the high cost of borrowing.

Here are some negatives you should keep in mind before choosing Affirm:

High interest rates may apply

Affirm offers both interest-free and installment loans with high-interest rates, varying from 0% to 36%, depending on your chosen repayment plan. Paying more interest means you will spend a higher amount toward the end of the loan period.

For instance, an Affirm loan of $1,000 with an APR of 36% for 12 months would cost you an additional $205.55 in interest, meaning you’re now spending $1,205.55.

They often require a credit check 

Before approval, Affirm may conduct a soft credit check to verify your identity, assess your creditworthiness, and check your risk level. You may be denied the loan or offered a higher APR if you have a poor credit rating.

There is a lack of travel protections

Travel protection services like trip cancellation insurance, baggage delay coverage, and medical evacuation are unavailable when you use Affirm for travel. You must purchase such services separately or buy a comprehensive travel insurance plan from another provider.

You don’t get rewards on travel purchases

Unlike with credit cards, using Affirm doesn’t offer any rewards or cash back. You won’t be able to get bonuses, perks, or discounts on your vacation expenses. However, some merchants may offer promotional discounts and other incentives to reduce the cost of your purchase.

You could fall into a “spending trap”

About 70% of BNPL users end up spending more than they can actually afford. Since you only make a small down payment and pay for the rest in installments, it’s easy to get caught up in the moment and book flights, hotels, and other travel expenses without considering the long-term financial implications. Poor budgeting could send you into freefall with mounting debts.

They have complex cancellation clauses

Affirm loans have a strict cancellation policy, requiring you to contact the store or merchant where you made the purchase and request a refund yourself. 

If the return is possible, the merchant will initiate the process and calculate the refund according to their return policy. Once the refund is issued, Affirm will update your balance within 3-10 business days. Read through all cancellation and return policies carefully before booking your tickets.

Affirm’s affordable, flexible, and transparent payment plans are attractive, but their high interest rates, lack of travel protections, and return policy complexities are a turn off.

Before you decide to use Affirm for your next vacation, consider these alternatives:

1. Start saving for your next trip with Accrue Savings

You should employ creative ways to save money for your next vacation. Accrue Savings is an innovative financial web app that helps you save now and pay later for your next trip. It allows you to set a travel goal and automatically transfer small amounts from your checking account (like from Chime, Wells Fargo, or whichever banking service you use) to your Accrue Savings account. 

Create an account and start saving depending on your flexibility. You will also earn money from your favorite brands deposited directly into your savings account to help you reach your travel goal even sooner.

Once you have saved enough, book your dream vacation debt free! 

2. Open a travel credit card

Travel credit cards offer a variety of travel-related rewards and perks, such as airline miles, hotel points, free checked bags, no foreign transaction fees, and lounge access. You can use your rewards to offset travel expenses or redeem them for free flights, hotel stays, and other experiences. 

A travel credit card also helps you build credit and save on interest if you pay off your balance in full every month. Compare the APR, annual fee, introductory interest rates, minimum repayment, and rewards structure when shopping for a travel credit card.

However, its important to remember that travel credit cards are just that — credit cards. This means they come with all the same drawbacks as regular credit cards: debt, an impact on your credit score, and the potential for high annual fees.

3. Look for travel grants or scholarships

If you are undertaking educational, research, or cultural-related travel, you may be eligible for a travel grant or scholarship to fund your travel expenses, including:

• Airfare
• Visa fees
• Accommodations
• Meals

Nonprofit organizations, educational institutions, and private companies provide grants to help students, researchers, and artists pursue their goals. 

Eligibility requirements and funding amounts vary by organization, so read the fine print carefully and apply early. Fulbright and Rotary International are two examples of organizations that award travel grants.

Start saving for your dream vacation with Accrue Savings

Saving for your vacation has never been easier with Accrue Savings. Our app makes budgeting effortless and stress-free. With just a few clicks, you can set up your savings account, fund your wallet with as little as $1 a week, and earn money from your favorite brands. You don’t have to worry about high-interest rates or getting into debt.

Browse our pool of partners and start saving for your dream vacation today!

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