The media narrative of these startups is somewhat misleading. It sounds neat to suggest that you can approve loans based on an amalgamation of seemingly random

The media narrative of these startups is somewhat misleading. It sounds neat to suggest that you can approve loans based on an amalgamation of seemingly random data points, like proper capitalization, but the reality is that even most of the alternative online lenders are using credit scores. From Affirm's website: > Affirm does a credit check to verify your identity and provide you with a financing offer when you sign up. This is a ‘soft’ credit check and will not impact your credit score. If you choose to complete a purchase and finance it with Affirm, we will do a single ‘hard’ credit check when your first order is processed by the merchant. This may have a minor impact on your credit score. For future purchases with Affirm we won’t need to check your credit again.