- ORIGINAL NEWS
Shopping online at 2 a.m.? That’s a red flag for buy now, pay later lender Affirm
- SUMMARY
When we’re shopping online late at night, studies show we’re making riskier purchases.
A data analysis by Affirm, a company that offers buy now, pay later services, found that credit delinquencies spike around 2 a.m., suggesting late-night financial decisions are more likely to go badly.
This could be because people are intoxicated or under financial pressure when they make these purchases.
Affirm uses the time a consumer attempts a transaction as a key data point to decide whether to approve loans, along with other factors like repayment history.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Last week, Affirm reported that 30-day delinquencies on monthly loans held steady from a year earlier at 2.4%, even as total purchase volumes surged 32% during that time.”
““We don’t need to know if you’re going to be employed in two years,” Linford said. “We need to know whether you’re going to be able to pay back the $700 purchase you’re making right now.”
Negative
“Americans shopping online after midnight are often making riskier transactions and are more likely to default on their loans, according to Affirm Chief Financial Officer Michael Linford.”
““Human beings don’t make the best decisions at two o’clock in the morning,” Linford said. “It’s clear as day — credit delinquencies spike right around 2 a.m.””