Snap Finance may be a viable option if you want to make large purchases and are new to credit or have bad credit. They have a readily available form of financing, but the costs need consideration. We take a closer look at Snap Finance in this review.

What is Snap Finance?

Snap Finance is a company that offers lease-to-own financing. If you want to purchase whatever you desire, here is your chance. Your purchase gets treated as a lease, but you get to keep the item right away.

What is unique about Snap Finance?

Snap Finance, unlike other lenders, has some unique features that stand out.

  • Regardless of your credit situation, you can apply at a store rather than visiting a lease-to-own retailer directly. Finance is only available in Snap-enabled stores.
  • Even if you have bad credit, lease-to-own financing allows you to borrow the money you need to get the items on your wish list.
  • You will own your merchandise when the lease term ends.
  • Snap Finance does not run a credit check on its customers.

Why you can trust Snap Finance?

They have a fast turnaround time as per reviews, and they resolve issues fast. Snap Finance has been in business for ten years and has an A rating with the Better Business Bureau. The BBB rating of a company is determined by how it responds to customers rather than by reviews. Snap Finance has a 4.7 rating on Trustpilot with over 4,739 reviews.

What are the benefits of Snap Finance?

  • No collateral: Many lenders require collateral as security for extending a loan. But Snap Finance does not need your assets as collateral.
  • Finance for bad credit: Even if you have bad credit, Snap Finance allows you to borrow the money you need to get the items on your wish list. You will own your item outright at the end of the lease term. You can apply at stores instead of going to a lease-to-own retailer directly, even if you have bad or no credit. Snap Finance is only available in Snap-enabled stores.
  • No credit checks: Snap Finance will not run a credit check. However, you must have a steady flow of income to qualify.
  • Approval up to $5000: With Snap Finance, you can get a loan for up to $5,000 with bad or no credit. The company claims to have the highest approval rate in the industry.
  • Multiple Solutions: If you have multiple requirements and no options available, Snap Finance is your answer. They assist people in obtaining funding for items such as: 
    • Furniture.

    • Bedroom decor.

    • Rims and Tires.

    • Jewelry.

    • Devices.

    • Appliances.

  • Easy payment option: You can settle against the merchandise purchased for up to 12 months. A 100-day payment option is also available to help you pay off your purchase faster.
  • Fast and minimal requirements: They claim to require only a few conditions that must get met to qualify for Snap Finance. That is why so many people choose to use their services.

What are the drawbacks of Snap Finance?

  • Fees: On a lease-purchase agreement, Snap Finance does not charge you interest. However, this does not rule out the possibility of paying more than the item's purchase price. The monthly payment will get an increment with an additional cost above the purchase price, as with all lease-to-own companies.

    You're still paying more for your lease-purchase agreement even though the payments are not interest.

  • No reporting: The three credit bureaus are not informed about your payments. With that said, it may not help your credit score.

How do you qualify for Snap Finance?

The following are the specific criteria:

  • You must be over the age of 18 to apply for a lease-to-own service.
  • It is mandatory to hold a current checking account.
  • You must ensure that you retain a steady source of income.
  • You are required to own a working email address or contact number.

Please note: Before you sign and agree to anything, Snap Finance Stores recommends that you closely examine the declarations of the contract, which we believe every borrower should do. Identify and understand your payment amounts, due dates, the amount you'll pay during the term, fee structure, etc. Ensure you are clear about the terms and conditions of your agreement.

Bottom Line

Snap Finance looks at a borrower's credit history aside from short-term financing. Even as their process is simple and adaptable, obtaining financing can be expensive.

Snap Finance will not report your credit information to the three major credit bureaus, so it is not a credit-building opportunity that will allow you to cut better loans in the long term. However, if you are needing or wanting a large purchase item, and cannot get a loan for the item, then Snap Finance might be your best option.


What is the cost of choosing Snap Finance?

Snap Finance's lease-to-own agreements have no actual cost listed on their website.  They do, however, address what clients might expect regarding interest or fees.

You can expect a processing fee or a preliminary obligation to pay when your transaction occurs. The said sum varies based on your lease contract's details, but it's comparable to a deposit.

On a lease-purchase agreement, Snap Finance does not charge interest. Furthermore, this does not rule out the possibility of paying more than the product's purchase cost. Lease-to-own companies add a fee to your monthly payments besides the purchase price.

What exactly is no-credit-check financing?

Snap's no-credit-check financing evaluates more than just credit reports when determining approvals or denials. Their lease-purchase financing applications do not get reported to the three credit bureaus – TransUnion, Equifax, or Experian. They can approve more applicants because of their intelligent automation process, which allows them to look over and above poor credit, no credit, and insolvency.

What is a lease-purchase agreement?

The lease-purchase is a type of lease wherein you lease the product from Snap Finance for a set period, generally 12 months, and then acquire it. Their 100-Day payment method and initial purchase options will start you paying off the lease and claiming control at any time.

Is there an interest charge on a lease-purchase agreement with Snap Finance?

On a lease-purchase agreement, they do not charge interest. Nevertheless, Snap Finance has a sales price and also a lease price. The fee varies depending on the customer and the state where they live. It gets specified in your agreement and disclosures. Before signing the contract, read and fully comprehend your disclosure information concerning the dates, amounts, and terms specific to your agreement conditions.

Are there any stores where you won't be able to use your Snap Finance card?

Your Snap Finance card is eligible for use at stores that sell furniture, mattresses, tires and wheels, appliances, electronics, and jewelry, among other things. You will need to find a merchant near you using their store locator. You must note that big box stores, general department stores, restaurants, gas stations, clothing stores, and other retailers that do not specialize in durable consumer goods are not eligible for lease-to-own financing.

About the author Greg Lorenzo

Greg is a financial expert who has been advising his audience on loans for over 10 years. He has a wealth of knowledge and experience in the area, and he is passionate about helping people get the best possible deal on their loans. Greg is an expert in negotiating loans, and he has a proven track record of getting his clients the best possible terms. He is also a strong advocate for financial literacy, and he regularly gives workshops and seminars on the topic.

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