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Last summer when I got my Peloton bike I decided to do financing instead of paying for it at front. I liked that the financing company, Affirm promised a loan that had no interest and could be paid off early if I wanted to. My Peloton was replacing my gym membership so the financing
It's been almost a year since I started financing my bike and I wanted to share my whole experience - from applying for financing to my monthly payments.
Applying for Financing
After I selected the bike and bike package I was going to buy (I got the Bike Essentials pack which included the Bike, headphones, a set of cycling shoes and set of light weights) I was brought to a check out page.
On the checkout page I filled out more info about myself, and then clicked a link to go to "Pay Over Time" with Affirm. I filled out a few questions and within seconds it came back with an approval and I was able to order my Peloton. I think the whole process took maybe 5 minutes.
The total for financing came out to be $53/month for 39 months (a little over 3 years) with no interest. If you get just the bike and no extra accessories, payments can be as low as $49/month. Update: Peloton recently dropped the price of the bike to $1,495. If you use Affirm for financing the bike, payments can be as low as $39!
Financing and Waiting for Bike Delivery
I quickly learned the downside to financing the Peloton is that I could potentially be paying for the bike before the bike even arrived. While the Peloton membership doesn't start charging until your bike or tread is activated, the Affirm loan payments are due starting 1 month after ordering.
Update: Peloton has changed when the loan begins! Now your loan will begin 30 days after your delivery date instead of the purchase date. When I bought my Peloton Tread, my payment date didn't get set until my delivery date was set.
When I ordered I originally had a 2 month delivery window, but after a few chats with customer service I was able to bump my delivery date up a month and a half.
Experience with Affirm
I've been financing my bike for almost a year now and have had a great experience with Affirm. The financing is interest free and I'm able to link it directly to my debit card so every month it'll automatically charge me (they send a text a few days before as a heads up), kind of like my old Orangetheory membership.
Related Post: Why I Left Orangetheory for Peloton
Affirm also has an app so I can see how much progress I've made towards paying off the bike and allows me to make extra payments (with no penalty!) to pay off the bike sooner. I can also make payments early really easily in the app as well.
Overall if I had to do it again I definitely would finance the bike - I'm planning to finance the treadmill once my bike is paid off! The payments are manageable actually less expensive than what I had been paying for my Orangetheory gym membership (even when you add on the $39/month Peloton subscription).
Frequently Asked Questions
Who Does Peloton Use for Financing?
Peloton uses the company Affirm for all their financing.
How Much are Peloton Financing Payments?
Payments can range depending on the bike package you purchase. Financing begins at $49/month for the original Bike and then can go up to $76/month for the Bike+ Family package.
What Credit Score Do I Need to Be Approved?
There's no official score released, but based on Affirm's site they say you're "more than likely" to be approved if your credit score is above 640.
Do I Start Paying Before My Bike is Delivered?
Yes, you start paying the loan potentially before your bike gets delivered. Payments start a month after you order the bike.
How Much is Due When I Order the Bike?
When you do financing you don't have to pay anything on the day you order the bike.
Is There Interest on the Loan?
Nope! This is (in my opinion) the best part of this loan. There's no interest due for the life of the loan.
Will Affirm's Credit Check Show on my Credit Report?
Yes, when you apply for the Affirm loan there will be a credit check that shows up on your credit report.
Are You Charged for the Peloton Membership and Affirm at the Same Time?
No, you're charged 2 separate charges - one goes directly to Peloton for the monthly membership, and another goes directly to Affirm for the loan. My Peloton membership payments started when my bike was activated (they give you a free membership until you receive the bike or tread), and the Affirm payments started a month after I purchased the bike.