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- I purchased a sofa from online retailer Inside Weather in October 2019 using an installment loan from Affirm. The sofa cost a little over $ 1,200.
- Obtaining the loan was easy with a very good credit rating, and I was offered three payment options: six, 12, and 18 months. I paid $ 206 per month for six months using auto pay.
- I liked that the loan allowed me to let my money grow in a high yield savings account, but I didn’t like Affirm’s frequent marketing emails.
- See Business Insider’s Picks For The Best High Yield Savings Accounts »
I moved into a new apartment last October, and when my sofa was taken from the moving van, I almost covered my eyes in shame. Yes, yes, I’m dramatic, but this sofa had seen better days – after years of dining, movie nights, sobbing parties, outside visitors and rowdy kids and animals, it was. time for something new. Farewell my beloved.
My husband and I decided to buy a sofa from Inside Weather, one of those new online sofa in a box retailers, and after checking fabric samples and selecting some custom items (like cushions and legs) ), we opted for a three-seater teal that could withstand the scratching and wandering of our little dog.
The total cost of the sofa was $ 1,238.32 after taxes and with a 10% off coupon (the original price was $ 1,248 before taxes). This was a pretty big expense, especially since my old sofa had cost around $ 300 with delivery.
We had money in our savings that could have covered the couch, but at the time it was earning 1.82% interest in a high yield savings account. So when we checked and Inside Weather offered the option of taking out a 0% interest installment loan through Affirm, we opted.
Apply for an Affirm installment loan
I have a “very good” credit rating, so I was able to qualify for a 0% interest rate loan, although this is not an option for all consumers. I had several repayment options: six, 12 or 18 months. I chose a six month loan with a payment of $ 206 per month. Below is a screenshot of the options that were offered to me before the 10% coupon was applied.
Applying for the loan was straightforward – I did it as part of the Inside Weather payment process, and it only added a few minutes to the typical payment time.
I selected “Affirm” as my payment method (rather than entering my credit card information or using PayPal) and once I “verified” with Inside Weather I was directed to the Affirm website where I entered personal information and got almost instant results. I did not see any serious investigation on my credit report after I applied for the loan. The loan appeared as an unsecured loan on my credit report after I started making payments, and now appears as a “closed account”.
How it was to repay the loan
I have set up an automatic payment for my Affirm loan so that I don’t have to actively think about making a payment each month. A few days before my automatic payment date each month, Affirm sent me an SMS and an email reminding me that payment will be taken from my account soon. I appreciated this – it helped me make sure there was enough money in my account to cover the payment.
Overall, I had a good experience with Affirm – taking out the loan was straightforward, paid no interest, and my savings were able to earn interest while I made the loan on my couch.
The only thing I found frustrating about Affirm was their frequent marketing emails. Within days of purchasing my sofa, I received an Affirmer email with the words “Your next big purchase doesn’t have to wait.” I wasn’t looking to spend more money on big purchases – especially since I had just borne the cost of a move to Los Angeles (ouch!) – and the company’s regular follow-ups encouraging me to spending was downright boring. I didn’t succumb to marketing, but I didn’t like it either.
I could consider using an installment loan again in a similar situation, although the rates for high yield savings accounts are now quite low so there is not as much to be gained by leaving your money there- down instead of repaying the loan immediately. The other option would be to save up front for the cost of a big purchase (allowing that money to grow into savings) and use that to make that purchase, as it’s always nice to free up some cash from month to month.