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Summary: Snap Finance will finance purchases for people new to credit or those with bad credit. This is a highly accessible form of financing but the costs may be high. There’s a pattern of customer reviews describing extremely high costs, often involving payments over double the cost of the original purchase.

What Is Snap Finance?

Snap Finance provides lease-to-purchase financing. You can buy goods ranging from computers to furniture to tires. Your purchase is considered a lease, but you get to take the item home immediately.

At the end of the lease term, you’ll own your item outright.

Snap Finance does not perform a credit check, but you will need a steady income.

Snap Finance home page

🤔 What is lease-to-own financing?

Furnishing a home can easily cost thousands of dollars. Other costly items like replacement tires for your car or appliances can present financial challenges if you don’t have the cash on hand. 

Lease-to-own financing allows you to borrow the cash you need to obtain the items on your list even if you have bad credit.

Instead of going to a lease-to-own retailer directly, you can apply at stores, even if you have bad credit or no credit. You can only use Snap Finance at stores that work with Snap.

Snap Finance Merchants helps people obtain financing for things like:

  • Furniture
  • Mattresses
  • Tires and Rims
  • Jewelry 
  • Electronics
  • Appliances

You can finance merchandise with up to 12 months of payments. There is also a 100-day payment option that helps you pay off your purchase in less time.

Requirements to Qualify For Financing:

  • Be at least 18 or older
  • Have an active checking account
  • Have a steady source of income
  • Have a valid email address or cell phone

How Does SnapFinance Work?

Snap Finance Stores makes it easy to apply for and receive financing online. Just make sure you meet the minimum requirements before moving forward with these 3 steps. 

Step 1: Apply Online

The application is online. It just takes a few minutes to fill out the form and you’ll submit your personal information along with your social security number and driver’s license number.

Snap Finance can approve your application in just minutes.

Step 2: Choose a Retailer

Once you get approved, you can choose your store and start looking for items up to $3,000, depending on your approved credit limit. SnapFinance partners with retailers all over the country so you can shop locally and use your approval to lease your items. There’s a store locator feature on their site so you can easily find your nearest retail partner option.

Step 3: Check Out

SnapFinance will send you an email with the amount you are approved to lease once your application is approved. All you need to do is show it to your cashier to proceed with the transaction. Your payments will be automatically deducted from your checking account.

How Much Does Snap Finance Cost?

Snap Finance does not share specific costs for their lease-to-own agreements anywhere on their site. However, they do speak to what some customers can expect in terms of interest or fees.

There will be a processing fee or initial payment due during the day you make your transaction. This amount can vary depending on the specifics in your lease agreement but compare it to a down payment.

Snap Finance does not charge interest on a lease-purchase agreement. However, that does not mean that you won’t pay more than the purchase price of your item(s). As with all lease-to-own companies, there is a cost in addition to the purchase price that will be added to your monthly payments.

👉 For example: If you choose to lease a laptop that retails for $600 and started making $40 payments every 2 weeks for 12 months, you’d pay close to $1,000.

So while the payments are not called “interest”, you’re still paying more money for your lease-purchase agreement. 

Some other costs and fees you may want to consider include:

  • Application fee and processing charges
  • Late fees
  • Missed payment or non-payment fees

Snap Finance does not clarify what the cost of financing is, but many users report paying extremely high costs.

⚠️ Warning: Your total cost could be more than double the cash price of the merchandise.

Snap Finance Reviews

Snap Finance BBB has an A+ rating with the Better Business Bureau and has been in business for the past 8 years.

Snap Finance BBB rating

A BBB rating is based on the company’s responses to customers, not on customer reviews of the company.

Customer Reviews

Some Snap Finance Reviews that stand out are: 

The interest for the loan is above 200% I’m paying Snap twice the amount the mechanic is getting simply because of the way they’ve structured the loan. At this rate, I’ll end up paying them over $5k for a $1500 job.

4/15/2020

Was not aware that I was going to be charged 2x the amount of the loan that I accepted. It’s like you’re charging 100% interest?

4/15/2020

These complaints are interesting because SnapFinance states on their site that they don’t charge interest. Customers may be mistaking the marked-up fees for interest. However, it seems that their 100-day pay option is better for customers looking to save more money. Other complaints have stated that customers’ costs went up after the 100 days or that it was harder to pay the balance off. 

Some users also complained that the Company didn’t approve them. Snap Finance says that credit is not an issue and implies that as long as applicants meet their basic requirements, they can get approved. 

☝️ One thing that Snap Finance Stores does recommend that we believe every borrower should do is carefully review the disclosures of the agreement before you sign and agree to anything. Make sure you understand your payment amounts, when they’re due, how much you’d pay over time, and fees, and additional unique terms of your agreement.

Snap Finance Pros & Cons

PROS

  • Quick online application.
  • No collateral.
  • Bad credit borrowers are approved.
  • Same-day decision and approval.
  • Choose your own local retailer.
  • Payments auto-debit from your checking account (which can help avoid late fees).
  • 100-day payment option to pay off your balance faster.

CONS

  • No transparent fee structure
  • Very high cost of leasing.
  • Your payments are not reported to the credit bureaus.
  • No grace time for payments.

Snap Finance Review: Final Take

Snap Finance looks beyond a borrower’s credit history when considering them for short-term financing. While their process is easy and flexible, getting financing can be a costly decision. 

Snap Finance does not report your payments to the 3 major credit bureaus. This financing option is not a credit-building opportunity that could help you qualify for better loans in the future. 

There are very few purchases that you need badly enough to risk the prospect of paying more than double what the item actually costs.