Afirm financing

[truetricia]

has anyone used the afrim financing? I just don't want to go in not knowing. It's a big company but what exactly does it entail? I'm thinking of using it for lighting

When i looked at it on BRS' website, I thought it had really high APR to the point it was almost predatory.

 

[cromag27]

I get that, but here's how you can overcome it:

1) Figure out what you would pay per month if you financed it.

2) Open up a savings account. It'll ONLY be used for this purpose - once money goes in here, it doesn't come out until your savings project is finished. (With the obvious caveat that, if you have an emergency, you can tap this fund.)

3) Every month, put whatever your payment would have been into this account.

Now, instead of paying interest, you're actually earning interest. And when you're done and pull the trigger on the lights, you won't have to remember to pay anything - they'll just be paid for.

not a realistic plan at all. you already set him up for failure by saying it’s ok to tap into the fund for emergencies. also, there’s pretty much zero significant return with savings accounts. you’d be better off buying stock and selling for profit.

 

[cromag27]

I used Affirm to get a boosted board so I could speed around NYC and risk my life. Hardly something vital to my livelihood. Checking your rates with Affirm does a soft inquiry which will not effect your credit.

I am not an authority with finance, but I would advise to check your rates and see what they offer. I dont know if they still offer 0% interest, but if you find a low interest rate I think it is always better to finance and keep available cash for investments or ventures that will turn a higher return. Just my 2cents.

Hope in the end you get some quality lights to add to your setup!

checking for approval is a soft inquiry. to actually obtain a loc, it’s a hard inquiry.

 

[adrianr514]

I’ve used them for a large purchase when they ran a 0% APR promotion. For those that obviously don’t understand how deferred interest works 0% APR means no interest period, no matter how long it takes you to pay it off. Deferred interest is when they have a 0% APR if paid within x months. This will be stated in the terms. So if it doesn’t say has to be paid in X months for no interest then their will never be interest.

 

[Biokabe]

not a realistic plan at all. you already set him up for failure by saying it’s ok to tap into the fund for emergencies. also, there’s pretty much zero significant return with savings accounts. you’d be better off buying stock and selling for profit.

The point of this isn't maximum financial return and Hedge Fund Manager levels of financial efficiency. It's to help break the cycle of feeling like you need to take out a loan to buy something for your hobby. I'm not his financial adviser... just a hobbyist who adopted a similar strategy to break out of my own bad habits. And yes, I do think it's important to keep the fund open for emergencies - if his house burns down or someone in the family is seriously hurt, keeping the money earmarked for aquarium lights is the height of irresponsibility.

For such a short time frame (I would imagine 6-12 months tops for this kind of a savings), trying to put the money into stocks would be rather silly, especially given the recent volatility in the market. Yes, he might be able to make some money on his money. He might also lose some money on his money and would have been better off with the negligible but non-zero return of a savings account. But given that the point of this savings is to buy some lights, not to build a retirement portfolio, the safe and secure savings account makes a lot more sense to me.

 

[cromag27]

I’ve used them for a large purchase when they ran a 0% APR promotion. For those that obviously don’t understand how deferred interest works 0% APR means no interest period, no matter how long it takes you to pay it off. Deferred interest is when they have a 0% APR if paid within x months. This will be stated in the terms. So if it doesn’t say has to be paid in X months for no interest then their will never be interest.

you just made completely contradicting statements. lol.

 

[cromag27]

The point of this isn't maximum financial return and Hedge Fund Manager levels of financial efficiency. It's to help break the cycle of feeling like you need to take out a loan to buy something for your hobby. I'm not his financial adviser... just a hobbyist who adopted a similar strategy to break out of my own bad habits. And yes, I do think it's important to keep the fund open for emergencies - if his house burns down or someone in the family is seriously hurt, keeping the money earmarked for aquarium lights is the height of irresponsibility.

For such a short time frame (I would imagine 6-12 months tops for this kind of a savings), trying to put the money into stocks would be rather silly, especially given the recent volatility in the market. Yes, he might be able to make some money on his money. He might also lose some money on his money and would have been better off with the negligible but non-zero return of a savings account. But given that the point of this savings is to buy some lights, not to build a retirement portfolio, the safe and secure savings account makes a lot more sense to me.

1. then why mention he can make money off interest, if you’re not pitching that as a benefit?????? do you even know what savings account interest rates are these days??????

2. i make a lot of money off stocks, both short term and long term. if you don’t know that someone can make a lot more money from simple stocks vs savings account interest in six months, then this thread is not for you.

 

[Mastiffsrule]

Mixed reviews in general, but the terms should spell out what it entails. Be prepared to get lots of comments about how you shouldn't finance a hobby

affirm financing reviews - Google Search

Exactly.

No one has mentioned there is tons of great choices out there that don’t have to be high end. Also used is a great place. Check out the forums. Another point is if it dies before the loan is paid off. Let’s say you buy something with a 1 year warranty and it breaks a year and half in. Now you are paying for nothing in essence.

Research what you want, ask questions. Just because you can’t own a Ferrari doesn’t mean a dodge demon will not out run it.

 

[Biokabe]

1. then why mention he can make money off interest, if you’re not pitching that as a benefit?????? do you even know what savings account interest rates are these days??????

2. i make a lot of money off stocks, both short term and long term. if you don’t know that someone can make a lot more money from simple stocks vs savings account interest in six months, then this thread is not for you.

1. To contrast paying sometimes exorbitant interest with actually making a little bit of money. Not the primary benefit - just a minor side benefit. And yes, savings account interest rates are pretty low. Mine gets about 1%. The point of it isn't the interest rate. It's that the money stays put and isn't as easy to access.

2. Yes, you can make a lot of money off of stocks in both the short and long term. You can also lose a lot of money off of stocks in both the short and long term. If you can't tell the difference between someone asking for alternatives to taking out a loan vs. someone asking how they can maximize a six-month investment, then this thread is not for you.

OP was asking about whether to take out a loan to buy some lights for his hobby. He was not asking about the optimal investment strategy for a short-term investment. Because the thing with investments... there's risk, and there's research involved. Investments can and do go sideways, and the chance of it all going wrong is much higher when you're not familiar with the world of investing. Given that OP was wondering about the wisdom of taking out a loan for a hobby purchase, I took the educated guess that finance and investing was not his specialty.

 

[Silver14SS]

Now that the thread has derailed into stock tips and savings advice, I say just take everything you have and put it all on black.

 

[JCOLE]

has anyone used the afrim financing? I just don't want to go in not knowing. It's a big company but what exactly does it entail? I'm thinking of using it for lighting

I have used it twice on Marine Depot. It's been great so far. They tell you what you will owe each month up front. My first purchase was about $300 and the total interest at the end will be around $30. That isn't bad. So far has been great.

A hobby is a hobby. I get it. Shouldn't put a hobby on credit. I have only used them twice for about $500 total and I would use them again without thinking twice. Too me a larger purchase is easier to swallow at $45 a month than $750 all at once. I have done it and honestly I feel worse dropping a grand of cash on a "hobby".

This "hobby" wouldnt be so bad if you didnt have to take a second mortgage out to finance your coral addiction. Kidding... I haven't done that........yet.

 

[Letterkenny]

1. then why mention he can make money off interest, if you’re not pitching that as a benefit?????? do you even know what savings account interest rates are these days??????

2. i make a lot of money off stocks, both short term and long term. if you don’t know that someone can make a lot more money from simple stocks vs savings account interest in six months, then this thread is not for you.

Do you honestly think a person who cannot save money would be knowledgeable enough to make money in the stock market? Sure, say invest in an index/fund but that person isn’t going to know what that is. Also, while minimal, some savings accounts are in the 2.5-3% for a risk free rate of return.

 

[Mastiffsrule]

Quick question also, what are you lighting, how old is the tank, tank info. You may not even need a high end light for a while.

Not taking position on stocks other than what happens to me

 

[siggy]

Hey its straightforward and easy , yes I can pay cash but it doesn't hurt as much as much when shelling 1200 bucks out.
I used it on a bunch of stuff, just hit a button and done. I dont believe you can over 12 payments, it is automatically debited from your account so don't worry about default interest. I just paid off 800 8 month early and saved 35 buck in interest, big woop, that's a wrass that will jump out sooner or later

 

[Tuffyyyyy]

Quick question also, what are you lighting, how old is the tank, tank info. You may not even need a high end light for a while.

Not taking position on stocks other than what happens to me

I think these are important questions. Are you buying Radions because you’re a hypebeast or because you need all of that PAR? Lol. What about Acorns or something that pulls the money automatically. There are banks that’ll take an extra dollar whenever you buy something and put it into savings. If you like to eat out a lot you’d probably have enough savings built up in no time.

 

[Waboss]

It's pretty easy, and everything is spelled out for you. For me, it's only really worth it if you get 0% APR. I've used it twice and it's never created a hard pull on any of the 3 credit bureaus (I monitor my credit report and score through 3 different services and I can see most of the "standard" types of scores such as fico 8, fico 2, fico 9, etc.). Although it does report as a closed account once it's paid off.

 

[vetteguy53081]

has anyone used the afrim financing? I just don't want to go in not knowing. It's a big company but what exactly does it entail? I'm thinking of using it for lighting

I have used them for two years. easy to work with and great terms. I recommend them if you don't have the cash up front or dont want to tie up your money.

 

[Bob Weigant]

I’ve used them with no issues at all.

 

[Antics]

Id personally recommend staying away from these types of financing if possible.

I've made a few posts on the subject in this thread.

 

[jsvand5]

What is your credit score like? Assuming it’s decent you should be able to get a credit card with a zero introductory APR then you can just break the payments down so you pay it off before the interest kicks in. That’s actually better than paying cash up front assuming you are responsible and keep on track with the payments.

Off topic, but the best advice IMO is to not spend $1000s on lighting. There are plenty of affordable options that grow coral just as well. The corals don’t care how much the lights cost.