For many people, clearing debts as quickly as possible is a key step toward financial freedom. Buy Now, Pay Later services like Affirm make it easier to spread out purchases, but they do mean you’ll pay more in the long run. Many buyers ask an important question: Can you pay off Affirm early and save on interest, or will you be charged prepayment penalties?
Paying off debt early is a great way to take control of your finances. We’ve created this guide at Remitly to explain how to pay off your Affirm loan early, whether any penalties apply, and how paying ahead of schedule can save you money. You’ll learn how to manage your Affirm account with confidence and make smarter financial decisions.
Does Affirm charge prepayment penalties?
No, Affirm does not charge prepayment penalties. You can pay off your loan early without extra fees or surprise charges.
A prepayment penalty is a fee some lenders use to recover lost interest when a borrower pays off a loan ahead of schedule. Affirm does not use this model. Instead, it allows you to repay early and reduce or even eliminate any remaining interest.
This borrower-friendly approach helps Affirm stand out from many traditional lenders and credit cards. Affirm shows you the total cost upfront and keeps its terms simple, so paying off your balance early comes with no hidden fees or financial downsides.
What are the benefits of paying off Affirm early?
Paying back your Affirm loan ahead of time comes with both short-term and long-term advantages.
Saving on interest
If your Affirm loan has an Annual Percentage Rate (APR), interest builds over time based on how long you carry the balance. Paying early shortens that timeline, which means future Affirm interest stops accruing.
For example, if you take a 12-month Affirm loan with interest and pay it off in six months, you avoid paying Affirm interest for the remaining six months. This reduces the total amount you pay compared to following the original schedule.
Flexibility for unexpected expenses
Clearing your debt early can give you more financial flexibility in case unexpected expenses arise. By reducing or paying off your monthly obligation sooner, you create room in your budget to handle emergencies or take advantage of time-sensitive purchases without stretching your finances. This can make your overall money management more adaptable and less stressful.
Improved cash flow
Once the loan is paid off, the monthly payment no longer affects your recurring expenses. This extra money can be directed towards savings, emergency funds, investments, or everyday expenses. Cutting even one recurring expense can make your monthly budget easier to manage.
Stronger future approval odds
Clearing off your debts early signals responsible borrowing. Over time, this can improve your chances of approval for future purchases or help you qualify for higher spending limits. That’s because lenders prefer borrowers who repay quickly and consistently.
Peace of mind
Knowing your debt is partially or fully cleared can greatly reduce financial stress. With fewer obligations to track, you can focus on other priorities with confidence, and managing your money feels simpler and more controlled. This relief comes from knowing you’re debt-free, not just having extra money.
Credit score impact
Paying off an Affirm loan on time or ahead of schedule generally supports a healthy credit profile by building a positive payment history. Reducing your total debt can also improve your credit utilization, which lenders view favorably.
In some cases, closing an installment account may cause a small, temporary dip in your credit score, but for most borrowers, the long-term effect of responsible repayment is positive.
How to make an early payment on Affirm
Follow these steps to make an early Affirm payment through the app or the website.
- Log in to your Affirm account using the mobile app or website. This gives you quick access to your loan details and payment options.
- Go to the payment section by clicking the “Pay” tab or opening the specific loan you want to pay off. You’ll see your remaining balance, upcoming payments, and available payment choices.
- Select the loan or purchase. If you have more than one Affirm purchase, choose the exact loan you want to pay early. This helps ensure your payment is applied to the correct balance.
- Decide between a partial or full payoff. Partial payments reduce your balance and future Affirm interest, while paying in full clears the loan and stops all remaining interest.
- Enter the payment amount, date, and method. You can pay through various methods, including a linked bank account or debit card.
- Review and confirm. Double-check the payment details before confirming. Once submitted, your loan balance will be reduced immediately.
Following these steps helps ensure your early repayment goes through, making it easier to save on interest while keeping your finances organized.
When you make a payment on Affirm, it usually takes three to five business days to process. The exact timing depends on your bank and the payment method you use. Any payment made after 7:00 p.m. ET is usually processed the next business day. If you need a more precise timeline, checking with your bank is the best way to confirm.
What are the common mistakes to avoid when paying off Affirm early?
Now that you know how to pay off Affirm early, here are a few common mistakes that can reduce your benefits if you’re not careful.
Paying the wrong loan
If you have multiple Affirm purchases, always double-check that you’re selecting the correct loan. Paying the wrong balance can cause confusion and may not reduce Affirm interest on the loan you intended to pay off.
Overstretching your budget
Early repayment is a smart move, but it shouldn’t strain your finances. Make sure paying ahead doesn’t interfere with rent, bills, or other essential expenses. Creating cash flow problems can lead to missed payments elsewhere and you may end up paying fees or more interest.
Thinking early payment solves all debt issues
Paying off one Affirm loan is helpful, but it doesn’t replace a full financial strategy. Long-term progress still depends on managing other debts, building savings, and maintaining healthy spending habits.
Failing to monitor updated balances
After making an early payment, confirm that it was processed correctly and that your balance reflects the change. Monitoring your account ensures the payment was applied properly and that you’re truly reducing interest and debt.
Is paying off early right for everyone?
Settling your debt early is a positive move, but whether it makes sense depends on the type of loan you have. Not all loans benefit equally from early repayment, so understanding your specific terms is key.
- 0% APR loans: If your Affirm purchase has a 0% APR promotion, paying early won’t save you money, because no interest is accruing. Early payment simply shortens the repayment timeline.
- Interest-bearing loans: If your loan includes interest, paying early can lead to real savings. An extra payment reduces the principal faster, which lowers future interest charges and shortens the loan term. This is where early repayment provides the biggest financial advantage.
Before making a decision, check your loan details in the Affirm app. Reviewing the APR, remaining balance, and payment schedule helps you decide whether paying early makes sense for your situation and ensures you get the most benefit from it.
Take control of your Affirm payments
Clearing your balance ahead of schedule is often a smart way to manage your finances. There are no prepayment penalties, and if your loan carries interest, paying ahead of schedule can save you money while reducing the total number of payments.
Beyond the financial benefits, early repayment gives you greater control over your budget and peace of mind knowing you’re actively managing your debt. Whether you decide to pay off a single installment, a custom amount, or the full remaining balance, taking action now helps you save money and regain financial flexibility.
FAQs
Can I make multiple payments in one month?
Yes, Affirm allows you to make multiple payments in one month. You can split your monthly payment into smaller amounts and pay extra whenever it’s convenient. This flexibility helps you manage your cash flow and stay on top of your loan without waiting for the next due date.
Will paying off Affirm early hurt my credit score?
Paying off debt early is usually good for your credit. In some cases, closing an active installment account can cause a minor, temporary dip in your score. Over the long term, the benefits of lower overall debt and consistent, on-time payment often outweigh any short-term impact.
Does Affirm refund interest if I pay early?
Affirm does not refund interest you’ve already paid. However, paying early stops future interest from accruing. It saves you money compared to following the original schedule. This means that early repayment prevents you from paying interest on the remaining months.
Can I change my payment due date?
Yes, depending on your loan terms, Affirm allows some flexibility with due dates. You can adjust your payment date in the app if paying early isn’t possible. This ensures you avoid late fees while managing your budget more comfortably.
Can I pay off only part of my balance early?
Absolutely. You don’t have to pay the full remaining balance to benefit. Making partial early payments reduces your principal, which in turn lowers the interest on future installments. This is a great option if you want to gradually lower your debt without committing a large lump sum.
Will paying early affect my loan rewards or promotions?
No, paying off your loan early won’t cancel any rewards or promotions you received when making the purchase. Any discounts, cashback offers, or 0% APR terms still apply. Early repayment lets you finish your loan sooner without losing rewards or perks.