How I Built This with Guy Raz Affirm: Max Levchin (Part 2 of 2)
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Jun 20, 2022 
Max Levchin, an entrepreneur and fintech pioneer known for co-founding PayPal and launching Affirm, shares his journey of rediscovery after leaving PayPal. He candidly discusses the struggles he faced in finding purpose post-success and the motivation behind creating solutions for credit challenges. Maximizing innovation, he highlights the transformative power of Buy Now, Pay Later services over traditional models, democratizing access to credit. Levchin also reflects on the balance of luck and hard work in navigating the evolving financial landscape.
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Car Dealer Embarrassment
- Despite being a multimillionaire after PayPal, Max Levchin was embarrassed when a car dealer refused him credit.
- His low credit score stemmed from youthful financial missteps, highlighting the lasting impact of early credit history.
Credit Scoring Problem
- Max Levchin realized credit scoring is a major problem, especially for those with past financial mistakes.
- He aimed to create a system that uses purchasing data for credit scoring, offering better rates and terms.
Credit Cards vs. Payday Loans
- Max Levchin views credit cards as similar to payday loans, just with lower rates, both relying on revolving debt.
- Affirm's approach involves fixed installment loans with no compounding interest or late fees, offering transparency and control.