(cont'd from yesterday's post)
Millennials generally hate credit cards, or so it is said. But Affirm's founders had an insight into the specific things they don't like about credit cards.
It wasn't debt and high interest rates that they reject. Affirm's interest rate can range from 0% to as high as 30%, based on the buyer's credit rating. So their interest rate can be as high as any other.
But there are no hidden fees. If you choose Affirm at check-out, you will be told exactly what you will wind up paying for your purchase over the time period you choose. If you pay with an ordinary credit card on which you carry a balance, you wind up paying interest on everything you buy until you're caught up. People get confused.
Two more things about Affirm apparently appeal to millennials: no big bank, and never any late fees.
Max Levchin claims that his system is more honest. Here's an interview he did:
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