EXCLUSIVE: Affirm Rebuilds Underwriting to Approve Borrowers a Credit Score Can’t See

Affirm has launched a new real-time underwriting model designed to approve more customers who were previously declined due to thin credit files. This change is a significant win for retailers because it targets 'invisible' consumers—those who are responsible spenders but lack a traditional FICO score. By using advanced transformer-based machine learning, Affirm can now analyze transaction data more deeply to find creditworthiness where traditional bureaus see a blank page. For your business, this means higher conversion rates at the point of sale. The model doesn't just look at a static score; it evaluates the specific purchase and the consumer's real-time financial health. This technology allows Affirm to offer competitive terms to a broader audience without increasing the risk of defaults. As a merchant, you benefit from a wider net of eligible buyers, especially among Gen Z and immigrant populations who often struggle with traditional credit metrics. The update is already live for U.S. checkouts, meaning you may already be seeing a slight lift in approval rates for customers who previously didn't qualify for financing.

Source: PYMNTS — BNPL

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