Peloton financing: Is it worth it?

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In a Nutshell

If you’re in the market for Peloton fitness equipment, you might be considering using Peloton’s financing partner, Affirm, to spread out the cost over time. With zero money down, zero interest and no hidden fees, Peloton financing might seem like a good option. But you won’t be able to finance Peloton’s membership costs and you may have to come up with a down payment if you’re only partially approved.
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Thinking about purchasing a Peloton indoor cycling bike but not sure how to cover the cost? Peloton makes it easy to finance your equipment through Affirm.

If you’ve decided to get a Peloton bike or treadmill (or both!), you might be considering how you’ll cover the cost. With equipment starting around $1,495 , it’s a major purchase, so you might want to spread your payments out over time by using Affirm, Peloton’s finance partner.

Let’s take a closer look at how financing a Peloton through Affirm works, what you’ll need to apply and what some other options may be if you don’t want to use Affirm.

How Peloton financing works

Affirm, which is Peloton’s financing partner, will do a soft pull on your credit when you apply for financing. The lender’s review of your loan eligibility won’t affect your credit scores.

If you’re approved for a loan, you may be able to get 0% APR financing with no money down. But not everyone can qualify. Affirm says on its website that a down payment may be required and that interest rates range between 0% and 30%, depending on the strength of your credit.

Loan terms are flexible. You can spread your payments over 12, 24, 39 or 43 months.

Unfortunately, loans apply only to Peloton equipment, so you won’t be able to finance the $39 monthly all-access Peloton membership fee that lets you access classes.

How to finance a Peloton

It’s unclear on the Peloton site what information you’ll need to provide in order to apply for Affirm financing, but according to Affirm, you’ll need to do the following:

  • Select Affirm as a payment method during checkout
  • Use your mobile number to set up an Affirm account or log into an existing account
  • See if you’re approved

You’ll also have to be 18 years of age and provide your Social Security number to apply for a loan.

Read our full review of Affirm to learn more about Peloton’s lending partner.

Can I get a Peloton with bad credit?

When reviewing your application, Affirm will consider your credit scores, payment history and ability to make your monthly payments. If you don’t qualify for Affirm to finance the full cost of your Peloton purchase, you may be asked to make a down payment.

How to finance a Peloton without Affirm

If financing your Peloton purchase through Affirm isn’t a good fit or you’re worried you may not be able to qualify, here are some other options that can help you finance this large purchase.

  • Pay cash upfront. If you have the cash to cover the cost of the Peloton purchase, you won’t have to worry about making monthly payments. If you don’t have the money saved, you can work on saving toward the expense.
  • Use a credit card with a 0% APR. Using a credit card with a 0% APR introductory offer can help you finance the purchase of a Peloton without additional interest charges. But to avoid interest charges, you’ll have to pay off the purchase before the introductory offer expires.
  • Find another financing partner. Using another “buy-now, pay-later” app to get the cash you need might also be an option. Check out our roundup of 4 companies like Affirm.
  • Use the Peloton app only. You don’t need Peloton-branded equipment to use the app, so you might consider using a bike you already have or finding a less expensive option to buy. At $12.99 a month for digital membership, you can access workouts without having to pay a hefty price tag for a new Peloton treadmill or bike.

About the author: Jacqueline DeMarco is a freelance writer based in southern California who graduated from the University of California Irvine with a degree in literary journalism. She writes about a wide range of topics, including fin… Read more.