Buy Now Travel Later | NewsRadio 740 KTRH

Tired of being stuck in the house? Dreaming of sitting on a beach in Maui with a Mai Tai in hand watching the sun set? Since you’ve had some time to think about where you want to go, given much thought to how you’ll pay for it?

Increasingly, consumers are turning to third-party lenders like Affirm, an online lender that offers a lot more flexibility than a credit card and allows you to set your payment schedule. You can set the interest rate in some instances!

The company has helped 6.2 million customers make payments on everything from Pelotons to furniture to shoes, and, says Alex Rafter, a spokesperson for Affirm, vacations. “Specifically in travel, that includes Expedia, Priceline, Delta Vacations, CheapOair, and more,” he says.

Settling costs up front can make that vacation even more relaxing. “So that really gives travelers the transparency and flexibility to see exactly how much they owe up front and choose the amount of time they would like to make payments,” says Rafter. No late fees, no prepayment fees. When was the last time your credit card let you do that?

No Maui Owie in your future, just the sound of waves lapping the shore, cold drink in hand.

Affirm provided us with the following information about their service:

How Affirm works for consumers 

·Pre-qualify with Affirm

There is no cost to apply to use Affirm, and checking if you prequalify by providing a few simple pieces of information never affects your credit score. 

§This includes name, phone number, email address, date of birth — for a real-time credit decision that takes into account data beyond FICO, such as transaction history and credit usage. 

You will go through a quick underwriting process for each new purchase that follows. 

§Each consumer’s experience with Affirm is personal and unique to them because we underwrite each loan individually (as opposed to extending a single line of credit).

§This approach allows us to ensure we’re lending to consumers responsibly, while giving payment flexibility to as many people as possible. 

·Choose a payment plan

oIf approved, loans through Affirm offer interest rates ranging from 0-30% APR. 

Payment terms range from six weeks to 48 months, and are offered to you based on your purchase, the underwriting process, and the merchant 

You choose the payment option that is best for you and your budget.

The total cost is always shown upfront and you never pay more than this amount.

·Make easy payments in the app

Download the Affirm app or sign in at affirm.com to make payments. We will send you email and text reminders for upcoming payments. You can also turn on autopay in the Affirm app.

You can also shop virtually anywhere on Affirm’s app for iOS and Android.

·Travel Specific Resources

You can read this LinkedIn post from our Chief Commercial Officer, Silvija Martincevic, on travel spending trends Affirm saw during the first four months of the pandemic.  

While travel spending all but came to a halt in March, on the Affirm platform we saw it increase 86% from April to May, and 99% from May to June.

Affirm transaction volume for accommodation reservations, booked with merchants like Getaway and Great Wolf Resorts increased 126% from May to June; vacation packages, sold by online travel agencies like Expedia and Priceline, were up 104% and flights, booked with Affirm merchants like Delta Vacations, were up 83% during the same time period. 

Recent Affirm survey data

Consumers now expect the same flexibility they’ve been forced to adopt when planning their trip when they pay for it. As a result, there is an increased preference for a transparent pay-over-time option at check out.

54% of those surveyed shared they are interested in using a pay over time solution in 2021, and 58% agreed that a pay over time solution allows them to better budget 

47% of respondents believe they’ll spend most on travel this year, up from 29% in 2020

49% of respondents are looking to travel more this year

Why we’re different

·We offer consumers a unique combination of term lengths, interest-free offers, and high approval rates.

·We’re committed to delivering transparent information to consumers at checkout so that they understand their financing options and can make informed financial decisions. 

The total cost is always shown upfront and the amount a consumer pays never increases. Affirm never charges late or hidden fees.

·Affirm’s 0% APR offers have no fees or deferred, hidden, or surprise interest, ever.

photo: Getty Images