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Personal Loans

Snap Finance Review // Specialized Financing For No Credit And Bad Credit

By Expert Contributor

Contracted writer for Credit Knocks.

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Summary:  Snap Finance offers small personal loans to people new to credit, bad credit, or good credit. The interest rates are high like many other bad credit lenders. 

Furnishing a home can easily cost thousands of dollars.

Not to mention, other costly items like replacement tires for your car or appliances can present some 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.

Does snap finance affect your credit?

Snap Finance Reviews say that they provide you with funding that you can take to local stores to lease an item that you can bring home that day then pay it off over time.

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

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In this Snap Finance Review, we’ll be going over how their lease-to-own financing works, which fees are involved, and what you can expect from your experience with this particular company.

What Is Snap Finance?

Snap Finance is known for offering fast and flexible financing up to $3,000. They are a lease-to-own financing company that partners with retailers who sell a variety of items.

Instead of going to a lease-to-own retailer directly, you can apply at Snap Finance Stores even if you have bad or no credit. 

Snap Finance Merchants helps people obtain financing for things like:

  • Furniture
  • Mattresses
  • Tires and Rims
  • Jewelry 
  • Electronics
  • Appliances
  • And More!

You can finance merchandise with up to 12 months of convenient 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
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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

To start, you’ll need to fill out a simple application 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 Merchants accepts all types of credit and can approve your application in just minutes.

Step 2

Once you get approved, you can choose your store and start looking for items to lease up to $3,000. 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

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. You’ll enter an agreement where you’ll make timely payments that are 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 there is no interest, you’re still paying more money just to have a 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 Reviews

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

Some customers have complained that Snap Finance marks up the price of your purchase almost doubling it.

Many people have asked 'Is Snap Finance legit?'.

Unfortunately the practice of charging high interest rates is normal when it comes to lease-to-own companies and it’s how they make money.

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Some Snap Finance Reviews that stand out are: 

4/15/2020: “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?”

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. 

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Another complaint I’ve seen is that a few people haven’t been getting approved for a loan. 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 and Cons

Snap Finance 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

Snap Finance Cons:

  • High fees
  • Your payments are not reported to the credit bureaus
  • No grace time for payments and very little

Snap Finance Review: Final Take

Our final Snap Finance Review 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 given their fees. 

Another big drawback is that positive payment history is not reported to the 3 major credit bureaus. This financing option should not be considered as a credit-building opportunity which could help you qualify for better loans in the future. 

If you’re facing an unexpected cost or want to utilize the flexibility of a lease-to-own option, SnapFinance Stores may be worth a try but only as a last resort if you have bad credit.

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