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Snap Finance Review9 min read

Reading Time: 7 minutes

Snap Finance is famous for its lease-to-purchase financing. This means you can purchase a range of foods, such as tires, furniture, computers, etc., even if you lack credit or have bad credit.

Although the purchase is categorized as a lease, you cannot obtain a specific item instantly. Plus, you will own the item outright at the end of the lease term.

The company can be a viable option if you have bad credit, need to make large purchases, or are new to credit. They also have readily available financing. But what about the costs? Keep reading this Snap Finance review and determine whether or not it suits your requirements.

Snap Finance Website

Snap Finance, What Exactly Is It?

Snap Finance is a finance broker in Salt Lake City, providing lease-to-own financing. This company helps people get funding for items like appliances, electronics, jewelry, rims and tires, mattresses, and furniture. It looks beyond the borrower’s credit history.

Unlike traditional lenders, Snap Finance offers unique features, like:

  • Allows people to apply at a store instead of directly visiting a lease-to-own retailer, regardless of their credit situation.
  • Enables people to borrow an amount they need to obtain items on their wish list, even if they have bad credit.
  • The company does perform a credit check on its clients.
  • People can own their merchandise once the lease term ends.

As per Snap Finance reviews, many people trusted the company for its turnaround time and for resolving any issue as quickly as possible. The company has been in the industry for 10 years and even gained a Better Business Bureau A rating.

Remember that a company’s BBB rating is determined by how it responds to its customers instead of by reviews. This lease-to-own financing provider also has Trustpilot 4.7 rating with more than 4, 739 reviews.

snapfinance by state

What are the Pros and Cons of Joining Snap Finance?

Imagine you need to furnish your home, purchase new appliances, or replace your car’s tires. These costs thousands of dollars, and you may face financial challenges, especially if you lack cash on hand.

However, with lease-to-own financing, you can obtain the necessary cash to purchase the items on your list without worrying about your bad credit.

Rather than directly going to lease-to-own retailers, you can simply apply at stores despite having no credit or bad credit. However, please note that you are only allowed to use Snap Finance at stores that work with the provider.

People can finance merchandise with a maximum of 18 months of payments. You can also go for a 100-ay payment to pay off the purchased items in less time.

To help you get more familiar with Snap Finance, check out the following pros and cons:

Pros

  • No collateral
  • Quick online application
  • 100-ay payment option for a faster balance payoff
  • Freedom to choose a local retailer
  • Same-day approval
  • Approval for borrowers with bad credit
  • Allows auto-debit from checking the account to prevent late fees

Read the following for a better understanding of the advantages of choosing Snap Review.

No Collateral Required

Most traditional lenders require collateral to secure or extend a loan. But if you choose Snap Finance, there is no need for you to prepare assets as collateral.

No Credit Checks Performed

Unlike other lenders that run credit checks as part of the approval process, Snap Finance does not conduct a credit check. On the other hand, an applicant must prove a steady income flow to qualify.

Bad Credit Does Not Matter

Another advantage of Snap Finance is that it provides financing even with bad credit. In other words, you can borrow the money you can use to buy the items on your list. You have a chance for the item outright at the end of the lease term.

Multiple Solutions

Snap Finance is a perfect solution if you deal with multiple requirements but lack options. The company will help you get the necessary funding for different items, from appliances to furniture.

High Approval Rate

Interestingly, Snap Finance provides a high approval rate. You have the opportunity to obtain a loan as high as $5,000 with no credit or with bad.

Minimal Requirements

The company is known for requiring only a few requirements or conditions to qualify for a loan. So, it’s no surprise that many people choose their products and services.

Easy Payment Options

Snap Finance allows you to pay off the items purchased for up to 12 months. However, if you want to settle your purchase faster, you can opt for the 100-day payment option.

Cons

  • Hard credit inquiry
  • Lacks grace time for payments
  • Any payment is not reported to the three credit bureaus
  • High cost of leasing
  • Lacks transparent fee structure

Check out the following to understand the drawbacks of Snap Review better.

Lacks Reporting

Since the three credit bureaus are not aware of the clients’ payments, it may not help their credit scores.

Fees

According to the lease-purchase agreement, the company will not charge the borrower interest. On the other hand, it does not necessarily mean you will not pay more than the merchandise’s purchase price.

Additionally, the monthly payment comes with an increment alongside an additional cost above the item’s purchase price. This is common to all lease-to-own companies. In short, even if you are not paying any interest, you pay more for the lease-purchase agreement.

What are the Snap Finance Qualifications?

In this Snap Finance review section, we will discuss how you can qualify for Snap Finance.

Here are the specific criteria:

  • You must be 18 years old or older.
  • You need to have an active checking account.
  • You must have a steady income source.
  • You need to have a valid mobile number or email address.

Please note that before signing up and agreeing to anything, Snap-enabled stores will recommend applicants examine the contract declarations closely.

You have to determine and understand the amount you need to pay during the term, the payment amounts, fee structure, payment frequency, due dates, etc. Also, make sure you are fully aware of the agreement’s terms and conditions.

How Does Snap Finance Work?

With Snap Finance, you have a chance to apply quickly and get financing online. All you need to do is meet the minimum requirements. After completing these requirements, follow the steps below:

Step #1: Fill Out an Online Form

First, you need to apply online. You need to fill out an online form with your personal information, including your driver’s license and social security number. This step will take only a few minutes. Plus, the lease-to-own financing company can approve the application in a matter of minutes.

Step #2: Pick a Retailer

After approving your application, you need to pick a specific store and look for items depending on the approved credit limit. The good news is that Snap Finance has a partnership with different retailers throughout the country. This means you can shop locally and lease your items.

If you are not sure of the stores near your location, you can use the store location on Snap Finance website. From there, you can quickly find the nearest retailer.

Step #3: Check Out

Finally, you will receive an email from Snap Finance with the approved amount to lease. Make sure to show that email to the cashier to proceed with the transaction. Please remember that your payments are automatically deducted from your checking account.

How Much Does It Cost to Get Snap Finance?

Unfortunately, Snap Finance does not provide particular costs for the lease-to-own agreements.

On the bright side, the company speaks to what its clients can expect in the fees or terms of interest. Please note that there is an initial payment due or processing fee on the day of the transaction. Yes, you read it right. The amount varies depending on the lease agreement’s specifications.

As mentioned above, even if the company requires no interest on the lease-purchase agreement, you may pay more than the item’s purchase price. You have to deal with the additional cost of the purchase price, which is added to your monthly payments.

Let’s say you want to lease a new laptop that retails for $750 and start making $55 payments every 2 weeks for 12 months. So, your payment is more than $1,300.

Your payments may not be considered interest, but you are still paying more amount for the lease-purchase agreement. Here are other fees or costs you need to consider:

  • Non-payment fees or missed payment
  • Late fees
  • Processing charges
  • Application fees

All in all, you will not get any clarification from Snap Finance regarding the cost of financing. But most of the borrowers reported that they had paid extremely high costs. Note that the total cost can be higher or double the cost of the item’s cash price.

Frequently Asked Questions

What items can I purchase with Snap Finance?

You can use Snap Finance to buy different items, including tires and wheels, jewelry, furniture, electronics, mattresses, computers, etc.

How many Snap Finance locations are there?

You can use Snap Finance at more than 200,000 locations throughout the US. Feel free to use the store locator search tool to find the nearest store to your site.

What is the cost of Snap Finance’s least-to-own agreement?

Snap Finance does not provide the lease-to-own agreement cost on their site. However, the company addresses what its clients’ can expect about the fees or charges. Once your transaction takes place, expect a preliminary obligation charge or a processing fee.

Final Thoughts

If you consider Snap Finance for short-term financing, they look beyond your credit history. Although the process is quick, easy, and flexible, you have to with expensive financing. The company does not report its client’s credit information to the credit bureaus. This eliminates your chance for a credit-building opportunity and getting better loans.

On the bright side, if you need a large purchase item but cannot get a loan, Snap Finance can be a perfect solution. Before agreeing to the terms and conditions, make sure that you are fully aware of the advantages and drawbacks of choosing Snap Finance.

Hopefully, this Snap Finance review helped you decide whether the company’s products and services are suitable for your needs or not.

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About 

Edwin Cannon has spent his entire career in the financial industry and specializes in alternative investments and surviving marketing turbulence. He started My Retirement Paycheck to help educate consumers about retirement investment options that aren't typically introduced by advisors.