FINANCING FAQ

Shopify Financing Options: FAQ

 

## What financing options does Shopify offer?

 

Shopify offers a variety of financing options through Affirm, including interest-free plans up to 12 months and interest-bearing plans for 18 or 24 months. The interest-bearing plans have an Annual Percentage Rate (APR) ranging from 10% to 36%.

 

## How does the financing process work?

 

When a customer chooses to finance a purchase through Shopify, the application is processed by Affirm. Affirm conducts a soft credit inquiry, which will not affect the customer's credit score. Based on the credit evaluation, the customer will be offered either an interest-free plan for up to 12 months or an interest-bearing plan for 18 or 24 months with an APR of 10% to 36%.

 

## What is a soft credit inquiry?

 

A soft credit inquiry is a type of credit check that does not impact your credit score. It allows Affirm to evaluate your creditworthiness without leaving a mark on your credit report.

 

## Will financing affect my credit score?

 

No, the initial application process includes a soft credit inquiry that will not affect your credit score. However, failing to make payments on time could have a negative impact on your credit if reported by Affirm.

 

## What are the terms of service for Affirm?

 

Shopify's financing options are built on top of Affirm's platform, meaning Affirm's terms of service and processes apply. You can review Affirm's terms of service for detailed information on their financing agreements, interest rates, and repayment policies.

 

## What is the interest rate for financing?

 

The APR for interest-bearing financing through Shopify ranges from 10% to 36%, depending on the customer's creditworthiness as assessed by Affirm. However, there are also interest-free financing options available for up to 12 months.

 

## How do I apply for financing?

 

During the checkout process, select the financing option provided by Affirm. You will be prompted to complete a brief application, which includes a soft credit inquiry. If approved, you will be presented with the available terms and interest rates. Choose the option that best suits your needs, and complete your purchase.

 

## Are there any additional fees?

 

There are no additional fees beyond the interest applied to your installment payments. However, it's important to review the terms provided by Affirm to ensure you understand the total cost of financing your purchase.

 

## What if I miss a payment?

 

Missing a payment can have serious consequences. Affirm may report missed payments to credit bureaus, which can negatively impact your credit score. Additionally, late fees may be applied as per Affirm's terms of service.

 

## Can I pay off my financing early?

 

Yes, Affirm typically allows for early repayment of financed amounts without any prepayment penalties. Check your financing agreement for specific details.

 

## Important Advice: Avoid Financial Strain

 

While financing options can make it easier to manage large purchases, it's crucial to consider your financial situation carefully. Do not overextend yourself or go into significant debt, especially for non-essential items. Make sure that the monthly payments fit within your budget and that you can afford the total cost, including interest. Remember, it's important to prioritize your financial health and avoid unnecessary debt.