How “No Credit Needed” Financing Works

If your credit history has prevented you from getting what you need, you have options. It may be possible for you to get financing without fully relying on a credit score to determine your creditworthiness.

This option is called no-credit-needed financing and it typically doesn’t use your credit score from the three largest credit bureaus (Experian, TransUnion, and Equifax). Here’s how the process works and how to use it to your advantage.

What is no-credit-needed financing?

Many secondary financing providers, including online lenders and lease-to-own providers, don’t rely solely on a credit score to make their decision. They may look at other factors to determine your eligibility, such as employment status and outstanding debts. Your credit history may still be reviewed by this type of lender, but your report won’t likely be pulled from the major credit bureaus. Every provider is different, however. You should speak to a representative before applying if it’s a concern for you.

With no-credit-needed financing, your credit score isn’t the main thing that decides whether you’re approved or denied. While “no credit needed” is not a no-credit-check guarantee, it can be an invitation for those with bad credit or no credit history to apply. 

How does lease-to-own financing work?

Lease-to-own is a no-credit-needed option that might be right for you, depending on your financial situation. It is typically available on durable goods, such as furniture, mattresses, and tires. Items are leased to a customer and after satisfying the contract terms, the customer takes ownership of the merchandise. If there are upfront costs, they are usually minimal, depending on the company and local regulations.

Lease-to-own is typically accessible to more consumers, including those with low credit scores.

How do you apply for lease-to-own financing?

When applying for lease-to-own financing, reputable financing companies, such as Snap Finance, work to make the entire process simple, secure, and transparent.

Here’s how it works.

1. Gather. Save yourself time by having all your personal information handy, including your Social Security number. To apply, you may also need an active checking account and be at least 18 years old (the minimum age may be higher in some states).
2. Apply. Complete the application, in-store or online, with a reputable finance company. Read over their website, check out any tutorials, and read reviews from current customers. Don’t rush into financing until you’re comfortable and can fully agree with the terms and conditions.
3. Get a decision. You should get a decision seconds after submitting your information.
4. Shop. Once you’re approved for financing, you can start shopping.

How to avoid scams and hidden costs

Borrowers, including those seeking no-credit-needed financing, may be targets of scams. It’s important to know your rights and understand how to avoid any additional costs.

Fees. Some of the most common online financing scams involve hidden or costly upfront fees and application charges. Look for online lenders and finance companies that are quick to disclose their terms.

Transparency. Lenders are required to disclose their fees, terms, and conditions before requiring you to sign an agreement. Reputable lenders want you to have all the information you need to make an informed decision. If you’re unsure of fees, call customer service and ask the company directly.

Snap can help

Consumers with challenging credit histories can often get what they need with no-credit-needed financing. Lease-to-own financing can be a good option, helping you get what you need today and make budget-friendly payments over time.

If less-than-ideal credit keeping you from getting what you need now, Snap can help. 

We know that traditional financing isn’t available to everyone. That’s why we look at more than scores from major credit bureaus to give you the best chance of approval.¹

Not every creditworthy person has good credit. Snap offers lease-to-own financing solutions for all credit types, no matter your financial background.¹

Learn how Snap can help you shop now and pay later.

The advertised service is a lease-to-own agreement provided by Snap RTO LLC. Lease-to-own financing is not available to residents of Minnesota, New Jersey and Wisconsin.

¹While no credit history is required, Snap obtains information from consumer reporting agencies in connection with the lease-to-own application. Not all applicants are approved.