Sezzle vs. Affirm — What's the Difference?
By Fiza Rafique & Maham Liaqat — Updated on March 9, 2024
Sezzle and Affirm are both financial services that offer buy now, pay later options, but they differ in terms, conditions, and merchant partnerships.
Difference Between Sezzle and Affirm
Table of Contents
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Key Differences
Sezzle offers a payment solution that allows consumers to purchase now and pay later in four interest-free installments over six weeks, with no impact on credit scores if payments are made on time. Affirm, on the other hand, provides a more flexible payment plan, offering various term lengths (such as 3, 6, or 12 months) and sometimes including interest, depending on the consumer's creditworthiness and the retailer's terms.
Sezzle is often associated with a younger demographic, appealing to those who might be new to credit or prefer not to use traditional credit cards for smaller transactions. It emphasizes easy approval and a straightforward, transparent payment process. Affirm caters to a broader audience, offering financing options for more significant purchases like electronics or travel, and it conducts a soft credit check that may impact the user's credit score, reflecting a more traditional credit model.
Sezzle's business model focuses on splitting the total purchase amount into four equal payments, without any interest, as long as the payments are made on time. This model is particularly appealing for smaller, manageable purchases, making it a popular choice among younger consumers and those looking to avoid traditional credit and interest fees. In contrast, Affirm's model can include interest charges based on term length and creditworthiness, offering a more traditional loan structure that can accommodate larger purchases with the flexibility of longer payment terms.
In terms of merchant partnerships, Sezzle tends to partner with a wide range of online retailers, focusing on sectors like fashion, beauty, and wellness, which align with its target demographic's interests. These partnerships allow for seamless integration of Sezzle's payment system into the online shopping experience. Affirm, while also partnering with a wide array of merchants, often features in sectors where higher-value transactions are common, such as electronics, home goods, and travel, reflecting its suitability for more substantial purchases.
Comparison Chart
Payment Structure
4 interest-free installments over 6 weeks
Flexible terms with potential interest
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Credit Impact
No impact if paid on time
Soft credit check, may affect credit score
Target Demographic
Younger consumers, small transactions
Broader audience, larger purchases
Interest Charges
None for timely payments
Depends on term and creditworthiness
Merchant Partnerships
Fashion, beauty, wellness
Electronics, home goods, travel
Compare with Definitions
Sezzle
Partners with lifestyle-oriented online retailers.
Many online boutiques offer Sezzle to make fashion more accessible.
Affirm
Flexible payment solution with varying terms.
Affirm gave him the option to pay for his new laptop over 12 months.
Sezzle
Interest-free installment payment platform.
Sezzle allowed her to buy the dress now and pay later without interest.
Affirm
Can include interest based on creditworthiness.
Her interest rate with Affirm was determined by her credit score.
Sezzle
Focused on small, manageable purchases.
Sezzle is perfect for splitting the cost of concert tickets into smaller payments.
Affirm
Suitable for larger purchases.
They used Affirm to finance their vacation package, spreading the cost over six months.
Sezzle
Appeals to a younger demographic.
College students often use Sezzle to manage expenses without accruing debt.
Affirm
Conducts a soft credit check.
When she applied for Affirm, it performed a soft inquiry that didn't affect her credit score.
Sezzle
Encourages responsible spending.
Sezzle's model promotes budgeting by breaking down payments without extra fees.
Affirm
Partners with a wide range of merchants.
From furniture stores to airlines, many businesses offer payment through Affirm.
Sezzle
Sezzle is a publicly traded financial technology company headquartered in Minneapolis, U.S operating in the United States and Canada. The company provides an alternative payment platform offering interest-free installment plans at selected online stores.
Affirm
To declare positively; assert to be true
A philosopher affirming the existence of free will.
A document affirming that each student has completed the course.
Affirm
To declare support for or belief in
Affirm the right to self-determination.
Affirm
(Law) To rule (a court decision) to have been correct; confirm
The Supreme Court affirmed the lower court's decision.
Affirm
To assert that one will give true testimony equivalent to that which would be given while under oath.
Affirm
To agree, verify or concur; to answer positively.
She affirmed that she would go when I asked her.
Affirm
To assert positively; to tell with confidence; to aver; to maintain as true.
Affirm
To support or encourage.
They did everything they could to affirm the children's self-confidence.
Affirm
To make firm; to confirm, or ratify; especially (legal) to assert or confirm, as a judgment, decree, or order, brought before an appellate court for review.
Affirm
(law) To state under a solemn promise to tell the truth which is considered legally equivalent to an oath, especially of those who have religious or other moral objections to swearing oaths; also solemnly affirm.
Affirm
To assert or confirm, as a judgment, decree, or order, brought before an appellate court for review.
Affirm
To assert positively; to tell with confidence; to aver; to maintain as true; - opposed to deny.
Jesus, . . . whom Paul affirmed to be alive.
Affirm
To declare, as a fact, solemnly, under judicial sanction. See Affirmation, 4.
Affirm
To declare or assert positively.
Not that I so affirm, though so it seemTo thee, who hast thy dwelling here on earth.
Affirm
To make a solemn declaration, before an authorized magistrate or tribunal, under the penalties of perjury; to testify by affirmation.
Affirm
Establish or strengthen as with new evidence or facts;
His story confirmed my doubts
The evidence supports the defendant
Affirm
To declare or affirm solemnly and formally as true;
Before God I swear I am innocent
Affirm
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Common Curiosities
Are there any fees associated with Sezzle?
Sezzle does not charge interest fees for on-time payments, but there may be fees for late payments or rescheduled payments.
What types of purchases is Affirm used for?
Affirm is often used for larger purchases like electronics, home goods, or travel, offering flexible payment terms that may include interest.
Do Sezzle and Affirm affect your credit score?
Sezzle typically does not affect your credit score if payments are made on time, while Affirm may conduct a soft credit check that could impact your score.
Who typically uses Sezzle?
Sezzle is popular among younger consumers and those looking to split the cost of smaller, manageable purchases without interest.
What is the main difference between Sezzle and Affirm?
Sezzle offers short-term, interest-free payments, ideal for smaller purchases, whereas Affirm provides more flexible terms, sometimes with interest, suitable for larger expenditures.
Can Sezzle be used in physical stores?
Sezzle is primarily used for online shopping, but it is expanding to include some in-store options through virtual cards.
Is Sezzle a good option for building credit?
Since Sezzle typically doesn't report to credit bureaus, it may not be the best option for building credit.
How does Affirm determine if interest will be charged?
Affirm's interest charges are based on the individual's creditworthiness and the specific terms agreed upon with the merchant.
Can you pay off a Sezzle purchase early?
Yes, you can pay off your Sezzle purchase early without any penalties, and it may help you manage your budget more effectively.
Does Affirm offer interest-free financing?
Affirm may offer interest-free financing options for certain purchases, depending on the merchant and your creditworthiness.
What happens if you miss a payment with Affirm?
Missing a payment with Affirm may incur late fees and could affect your credit score, depending on the terms of your agreement.
How does Affirm's soft credit check work?
Affirm's soft credit check is a preliminary review of your credit history that doesn't impact your credit score, used to determine your eligibility and potential interest rate.
What are the benefits of using buy now, pay later services like Sezzle and Affirm?
These services offer the convenience of immediate purchase with the flexibility of spreading payments over time, potentially making larger purchases more manageable and accessible.
How do Sezzle and Affirm make money?
Sezzle and Affirm make money through merchant fees and, in Affirm's case, potentially through interest on longer-term financing plans.
Can you use Affirm for every online purchase?
Affirm is not available for every online purchase; it's only an option at participating merchants that offer Affirm as a payment method.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Co-written by
Maham Liaqat
