Rich Habits Podcast

153: An Honest Conversation w/ Affirm CEO Max Levchin

12 snips
Jan 19, 2026
Max Levchin, the Co-founder and CEO of Affirm and a former PayPal CTO, shares insights on the transformative power of credit in modern finance. He contrasts traditional revolving credit with Affirm's fixed-term installment loans, emphasizing transparency and their role in financial responsibility. Levchin also highlights how data-driven underwriting enhances fairness and reduces defaults. Personal stories fuel his motivation to fight credit inequity, and he discusses the potential of AI in revolutionizing financial products.
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INSIGHT

Credit As Investment In Future Self

  • Thoughtful, responsible credit is an investment in your future self and enables opportunities like education and homeownership.
  • Credit should provide control and certainty, not stress and opaque costs.
INSIGHT

Revolving vs Installment: Know When Debt Ends

  • Revolving credit hides when you'll be out of debt and often compounds interest into principal, keeping balances high.
  • Installment loans give a clear payoff schedule, reducing stress and encouraging responsible borrowing.
INSIGHT

Transparency Solves Exponential Debt Confusion

  • Consumers can't reliably calculate true card costs because revolving debt follows exponential dynamics.
  • Transparent upfront pricing like Affirm's removes uncertainty and helps planning.
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