Snap Finance

Snap Finance: consumer financing for customers with limited credit history

Snap Finance is a consumer financing entity that has operated since 2012 and presents itself as an alternative for people with poor or no credit history. Its approach focuses on assessing creditworthiness beyond the traditional FICO score, with the stated goal of expanding access to financing. The company claims to have more than 8.5 million customers and a network of over 100,000 partner merchants.

How the application process works

Applicants can start the process in minutes, either in-store or online, and receive a decision in seconds. According to the company, applying does not affect the applicant's FICO score. Approval amounts range from $300 to $5,000. Once approved, customers can use the amount to purchase products at partner merchants and pay later.

Available financing products

Snap Finance markets various financing options under its brand, including lease-to-own, installment loans, and retail installment contracts (RIC). Availability of each product may vary by state, merchant, industry, and qualification criteria. Some products are issued by independent merchants or partner banks and are serviced by Snap Finance LLC.

Payment plans and costs

The company offers multiple payment plans that can affect the total cost of the transaction. Its website features a calculator to estimate payments under a lease-to-own agreement. An example published by the company for a $1,250 transaction shows a payment of $74.35 twice a month, with an estimated total of 36 payments and a total outlay of $2,487.50. This example corresponds to the maximum term and may involve higher lease costs; customers can choose an early ownership option to reduce the total cost. For loans, payments would be different.

Categories of financeable products

The catalog of financeable purchases includes tires and rims, furniture, mattresses, appliances, electronics, car audio, and jewelry. The company organizes these categories on its site and offers specific pages for financing tires and rims, furniture, appliances, mattresses, computers, car audio, and jewelry.

Mobile app and access

Snap Finance has a mobile app that, according to the company, has over one million users. The app allows customers to manage their relationship with the entity and supports them throughout the purchase and payment process.

Corporate structure and activities

The company defines itself as part of the fintech ecosystem and states a mission to unlock financial flexibility. Its public areas of activity include products, careers, corporate social responsibility, and newsroom. It serves both consumers and merchants, with distinct sections for customers and businesses, including developers and an eBook and research library.