Snap Finance: A No-Credit-Needed Financing Option
Snap Finance is a digital finance company that provides point-of-sale, virtual rent-to-own (“vRTO”) financing programs. This means that you can finance a variety of products at the time of purchase, even if you have poor credit or no credit. Snap Finance offers financing for a wide range of products, including furniture, appliances, electronics, jewelry, and home improvement products.
How does Snap Financing work?
To apply for Snap Finance financing, you can visit the Snap Finance website or visit a participating retailer. The application process is quick and easy, and you can be approved in minutes. Snap Finance will check your credit, but they also consider other factors, such as your income and employment history. Even if you have bad credit or no credit, you may still be approved for Snap Finance financing.
Once you have been approved for Snap Finance financing, you will be able to choose a payment plan that works for your budget. Snap Finance offers a variety of payment plans, with terms ranging from 12 to 60 months. You will also be able to make a down payment, if desired.
Benefits of using Snap Finance
There are several benefits to using Snap Finance financing, including:
- No credit needed: Snap Finance offers financing to people with poor credit or no credit.
- Flexible payment plans: Snap Finance offers a variety of payment plans to choose from, so you can find a plan that works for your budget.
- Quick and easy application process: The Snap Finance application process is quick and easy, and you can be approved in minutes.
- Wide range of products: Snap Finance offers financing for a wide range of products, so you can find the products you need, even if you have a tight budget.
Pros on brief:
- Quick online application
- No collateral
- Bad credit borrowers are approved
- Same-day decision and approval
- Choose your own local retailer
- 100-day payment option to pay off your balance faster
- Payments auto-debit from your checking account (which can help avoid late fees)
Drawbacks of using Snap Finance
There are also a few drawbacks to using Snap financing, including:
- High interest rates: Snap Finance financing can have high interest rates, especially for people with bad credit.
- Fees: Snap Finance charges a variety of fees, including application fees, late payment fees, and prepayment penalties.
- Risk of default: If you default on your Snap Finance loan, you may be subject to repossession of the product you purchased and other penalties.
Cons in brief:
- No transparent fee structure
- Very high cost of leasing
- Your payments are not reported to the credit bureaus
- No grace time for payments
- Hard credit inquiry
Overall, Snap Financing can be a good option for people with poor credit or no credit who need to finance a purchase. However, it is important to weigh the benefits and drawbacks of Snap Finance financing before applying.
Here are some tips for using Snap Finance responsibly:
- Choose a payment plan that you can afford.
- Make your payments on time each month.
- Consider making a down payment to reduce the amount of interest you pay.
- Pay off your loan early to save money on interest.
If you have any questions or concerns about Snap Finance financing, you should contact Snap Finance customer service.
Warning: On July 19, 2023, the Consumer Financial Protection Bureau (CFPB) announced a lawsuit against Snap Financing, accusing the company of misleading advertisements, insufficient disclosures, and interfering with consumers’ ability to understand the terms and conditions of its financing agreements, along with misrepresenting consumers’ payment obligations and making false threats in collections.
The allegations have yet to be proven but they are extremely serious, and given this information we would strongly recommend not doing business with Snap Finance.