Sezzle vs Affirm

Both Affirm and Sezzle are Buy Now Pay Later apps that allow you to Pay-in-4 installments with 0% interest rates. Both apps also offer you the opportunity for a monthly payment with longer term for larger purchases. The main difference between Sezzle and Affirm is that Sezzle is able to report your payments to all three major credit bureaus and hence help you build or rebuild your credit history. If you are a rebuilder, Sezzle is the better choice.

What is Sezzle?

Sezzle is a Buy Now Pay Later app that allows you to Pay-in-4 or Pay-in-2 with no interest. With the Pay-in-4 option, you will pay 25% downpayment upon your purchase and pay off the three remaining 25% in 3 installments every 2 week. That means you will finish paying in 6 weeks. With the Pay-in-2 option,

There is a monthly pay option that allows you to pay monthly for up to 48 months with an APR of between 5.99% and 34.99%. For the financing option, there will be a hard inquiry and you may get limits as high as $15,000.

Unlike most other BNPL apps, Sezzle reports your payment to the three major credit bureaus Experian, Equifax and TransUnion. You would have to enroll in the program called Sezzle Up (which is free) to enable credit bureau reporting. In order to enroll in Sezzle Up, you would have to pay off one order on time and in full, link your bank account as the default for scheduled payment and enter your SSN and confirm your other (already entered) personal information.

Sezzle has a virtual card called Sezzle Anywhere which you can use anywhere Visa is accepted. Sezzle Anywhere charges a monthly subscription fee that various with different users. Many have reported to be charged $17.99/month.

What is Affirm?

Affirm is also a Buy Now Pay Later app which allows you to make purchases and pay over time. As is the standard in the BNPL industry, Affirm offers a Pay-in-4 payment option at 0% APR. The Pay-in-4 option is normally for purchases ranging from $50 to $1,000. For purchases of higher value up to $5,000, Affirm offers a monthly payment plan for up to 60 months with an interest rate ranging from 6.99% to 35.99%.

Affirm claims to report to Experian for your first installment loan only. But they do not report to credit bureaus on subsequent loans but will report if you are over 30 day late.

Similarities

Both Sezzle and Affirm are similar in the following ways:

Both have Pay-in-4 and Monthly Payment Plans

Both Sezzle and Affirm offer the standard Pay-in-4 payment option and a monthly payment option as well. This is really typical of most BNPL apps.

Both offer 0% Interest Rates

Sezzle and Affirm do not charge any interest rates for their Pay-in-4 option. Sezzle also has a Pay-in-2 option whereby the interest rate is 0% as well.

No Hard Inquiries

Both Affirm and Sezzle do not perform any hard inquiries. Having said that, Affirm did suggest that they will scrutinize your credit score, debt levels, credit utilization levels more closely and you may not be approved to open an account with them. It appears that Sezzle is probably the easier app to get approved for.

Differences

Despite being typical BNPL apps, Sezzle and Affirm differ in many ways:

Sezzle has more payment options

Though both Sezzle and Affirm have the standard Pay-in-4 option, Sezzle also has the Pay-in-2 option whereas Affirm does not.

Different Terms for the monthly payment option

Both Affirm and Sezzle also offer monthly payment options. Sezzle has a short term of up to 48 months with interest ranging from 0% to 34.99%. With Sezzle, you can get a credit limit of up to $15,000 for the monthly payment option.

Affirm has a longer term for those who opt for their monthly payment plan. You can take anywhere from 3 to 60 months to pay off your purchase on the monthly plan. The monthly plan is for larger purchases up to $5,000.

Sezzle Reports to all three major credit bureaus - Affirm does not

Sezzle reports to TransUnion, Experian and Equinox, which the the three major credit bureaus. You would have to subscribe to Sizzle Up to enable the credit bureau reporting. Sizzle Up is free to enroll.

In contrast, Affirm says they “may” report the first installment loan to Experian and not report any further loans until you default on your payment (i.e. 30 days late).

Affirm Card is slightly different from Sizzle’s Card

Both Affirm and Sizzle have cards that can be used anywhere Visa is used. You can use the cards anywhere Visa is accepted and opt for the various payment plan that both offers as long as you get approved for the purchase beforehand. But both cards are slightly different. Sizzles card is called Sizzle Anywhere.

The Affirm Card is both a physical card and virtual card whereas Sizzle Anywhere is just a virtual card. The Affirm card is also free whereas Sezzle Anywhere charges a monthly subscription fee. Many have reported that they are charged $17.99/month.

Which is Better?

If you are looking for a regular Buy Now Pay Later, there is very little to choose between Sizzle and Affirm. Both offer the standard Pay-in-4 and monthly payment option. Sizzle does offer an additional Pay-in-2 option though. Many people have multiple BNPL apps because they apply for another one if they feel they did not get the credit limit that they wanted. Many people thus have both Sezzle and Affirm and their opinion of which is better is mixed. You may get a much higher limit (up to $15,000 with their monthly option versus %5,000 for Affirm’s monthly pay option).

However, if credit building is important to you, then Sizzle is the better choice. Enrolling in Sizzle Up enables Sizzle to report your timely installment payments to all three major credit bureaus. Affirm claims they “may” report only your first installment loan to Experian. But they will report late payments!

Affirm does have a better “Visa Card” than Sezzle because it is both a physical and virtual card, has no fee and can be used for regular purchases like a debit card where you pay in full immediately. In contrast, Sizzle Anywhere is only a virtual card (no physical card) and charges a monthly subscription fee.

To sum up, if you want a BNPL app that also reports to credit bureaus to help you build your credit score, then Sezzle is the obvious choice. If credit bureau reporting is not a concern, either one will work because they have similar payment plans and work like regular BNPL apr.