Buy Now, Pay Later services have been booming in recent years, letting people split purchases into smaller chunks.
Now, Affirm is testing that same idea for one of the biggest bills people face: rent.
In a new pilot program with financial technology company Esusu, Affirm will let renters split their rent into two equal payments each month.
The payments will be scheduled biweekly, which could make things easier for renters who get paid every two weeks.
Affirm says the program comes with 0% APR, no hidden fees, and no late fees.
And according to the company, every application is underwritten individually to make sure the person can afford the payments.
Esusu, on its end, helps renters build credit by reporting on-time rent payments to major credit bureaus.
The pilot program is designed to give “eligible renters a flexible option for managing one of their largest monthly expenses,” Affirm said in a statement to FOX Business.
So is this a helpful tool or just another way to stretch people’s budgets even thinner?
Here are five reasons why it could be good, and five reasons to be cautious.
5 Reasons Why This Could Be Good
1. Easier to Line Up With Paydays
A lot of people get paid every two weeks, but rent usually shows up all at once.
Splitting it into two payments can take some of the sting out of the first of the month.
2. No Extra Charges
Affirm says you won’t get hit with interest or late fees if you use this program.
That’s not the norm; most payment options charge you for flexibility, especially when money’s tight.
This setup could give renters some breathing room without extra costs piling up.
3. Could Help Build Credit
Esusu reports your rent payments to the major credit bureaus. If you’re paying on time, that could give your credit score a boost.
For renters trying to build or rebuild credit, that’s a small win that could matter later.
4. Less Risk of Overdrafts
Having rent hit all at once can clear out your account fast.
Splitting it into two smaller payments might make it easier to keep enough money in your account and avoid overdraft fees or bounced payments.
5. Doesn’t Work Like a Credit Card
There’s no 20% interest rate hanging over your head here. You’re not racking up credit card debt or worrying about minimum payments.
You just split your rent into two payments and pay them off on schedule, no tricks, no extra fees.
5 Reasons Why It Might Be Bad
1. It’s Still Debt
Just because there’s no interest doesn’t mean it’s not a commitment.
If your budget’s already tight and one paycheck falls short, missing even one of these rent payments could throw everything off.
It’s not free money; it still has to be paid on time.
2. Could Mask Bigger Financial Problems
If splitting up rent is the only way to get it paid, it might mean you’re already stretched too thin.
BNPL can give you a break in the short run, but it doesn’t fix the bigger issue: your monthly expenses are probably too high for your income.
That’s not a problem this kind of tool can really solve.
3. No Word on Full Rollout Yet
Right now, this is just a pilot. There’s no firm timeline for when, or if, it will be available nationwide.
That makes it hard to count on as a long-term solution.
4. Danger of Stacking Loans
Matt Schulz, chief credit analyst at LendingTree, warned that having multiple BNPL loans at once can get messy.
“The danger with BNPL is when you have multiple loans that you have to manage,” he told FOX Business.
5. Requires Cash in Your Account
The payments are tied to your debit card or bank account. If the money isn’t there, things can spiral fast.
It is critical that users have enough cash in that account to pay the bill.
“That can get tricky, especially if you’re not used to managing credit,” Schulz said.
What This All Means for Renters
This new offering from Affirm and Esusu shows how fintech is pushing into new parts of the financial system, trying to make things more flexible for everyday consumers.
But even tools with no fees or interest still come with risks if used poorly.
While it may offer short-term relief and help build credit, using BNPL for something as essential as rent could also be a sign of deeper financial strain.
For now, the pilot is small and still being evaluated.
Whether it expands will likely depend on how well renters manage the payments and whether the benefits outweigh the risks.