Affirm Inc. is in talks to offer installment loans to Walmart Stores Inc. customers. The loans will be largely geared to costlier Wal-Mart items like tires and other purchases over $200. Affirm’s installment loans have fixed annual percentage rates that often range from 10% to 30%, depending in part on the borrower’s credit worthiness.
Affirm’s loans are often geared to people who don’t have enough of a borrowing history to get a credit card. The firm’s average loan is about $750, but its loan sizes generally run as much as $10,000. The company has repayment periods that range from three to twenty-four months, with an average term of nine months.
Source: AnnaMaria Andriotis, Wall Street Journal, August 23, 2017.