You may wonder, “Does Snap Finance help improve my credit score?” While Snap offers convenient lease-to-own financing, it doesn’t directly contribute to building credit with major bureaus. Here's what to keep in mind if you're exploring Snap as part of your financial toolkit.
Key takeaways
- Snap Finance lease-to-own financing does not help build credit with major bureaus. On-time payments made through Snap’s lease-to-own financing are not reported to Experian, TransUnion, or Equifax.
- Snap offers convenient lease-to-own financing for those with less-than-perfect credit.
- Snap can support your financial goals in other ways. Snap helps you get what you need now while you work on long-term credit-building strategies with other tools.
Responsible use of credit, including credit cards, loans, or financing agreements, can help you improve your credit score. But does Snap Finance help build credit?
The short answer is no. Using Snap Finance lease-to-own financing does not directly help you build credit because Snap does not report your on-time payments to the major credit bureaus. However, Snap’s lease-to-own financing can be a helpful tool to help get you essential items while you work on improving your credit through other means.
Here’s a closer look at why building credit matters, how credit reporting works, and the role Snap Finance can play in your financial life.
Why credit-building matters
Your credit score can open – or block – financial opportunities. A good score gives you access to lower interest rates, better loan terms, and even the opportunity to lease an apartment or qualify for certain jobs. For those with poor credit or no credit, rebuilding a credit score can feel overwhelming. But focusing on your credit history is worth the effort because it helps you achieve long-term financial stability.
New to the ins and outs of building credit? Check out this beginner-friendly guide to credit scores, which explains what a credit score is and how a good score can unlock financial opportunities and access.
How credit reporting works
What's the difference between a credit report and a credit score? Your credit report is simply a detailed record of how you've used credit in the past, including your lines of credit and your payment history. Major credit bureaus, including Experian, TransUnion, and Equifax, collect your payment history, the amounts you owe, and how often you apply for credit. Credit scoring companies, such as FICO®, use that information to calculate your credit score. The better your score, the easier it is to get approved for credit when you need it.
What factors affect your credit score?
There are five key factors that “move the needle” when it comes to your credit score. Here are five factors that impact your credit score:
- Payment history – Paying bills on time is the most important thing you can do to build your credit score.
- Credit utilization – This how much of your available credit you’re using. The lower your credit utilization rate, the better.
- Length of credit history – Older accounts with a long history can boost your score.
- Credit mix – Having a variety of credit types - credit cards, installment loans, a mortgage - helps.
- New credit – Too many applications for credit in a short time can hurt your score.
Does Snap Finance pull credit for applications?
If you’re considering using Snap Finance lease-to-own financing, you may wonder, “Does Snap pull credit for applications?” While no credit history is required, Snap obtains information from consumer reporting agencies in connection with applications. For lease-to-own financing, Snap uses data from secondary reporting agencies (CRAs), including Clarity and DataX. Applying with Snap may affect an applicant's credit score with those CRAs.
It’s important to know how Snap Finance works and how it interacts with your credit.
No impact to your FICO score to apply
There's no impact to your FICO score when you apply for Snap’s no-credit-needed lease-to-own financing.1
Keep in mind that Snap always checks credit. But because application results are not based on credit alone, customers can be approved even with poor credit or no credit. All credit types are welcome to apply, but not all applicants are approved.1
Traditional financing looks primarily at your credit score when you apply. But Snap looks at multiple data points to determine your creditworthiness. That could mean that even if you've been turned down for traditional financing and have less-than-perfect credit, you may be considered for Snap's lease-to-own financing.1
Learn more about applying for Snap’s lease-to-own financing here. And if you’re unsure about the difference between a hard and soft credit check, check out this guide.
Snap payment history is not reported
Unlike traditional loans and credit cards, your payment activity with Snap’s lease-to-own financing is not reported to the major credit bureaus, including Experian, TransUnion, and Equifax. This means that even if you make every payment on time, it won’t build your credit with those credit bureaus. For many consumers, this answers the question, "Does Snap Finance build credit?" The short answer is no, using Snap’s lease-to-own financing does not build or impact credit with major credit bureaus.
If building credit is your main goal, explore other tools like secured credit cards or credit-builder loans. This article offers practical steps to build your credit score.
Snap Finance is not a credit-building tool
While Snap’s lease-to-own financing is a convenient way to take home items like mattresses, furniture, and tires, it’s not a traditional credit-building tool. Credit-builder cards, secured loans, or even becoming an authorized user on someone else’s credit card can help you establish a credit history.
If you've been denied credit in the past, there are actions you can take to improve the chances of approval when you reapply. Check out these tips when you reapply after a credit denial.
Snap Finance vs. a secured credit card
Thinking about Snap Finance vs. a secured credit card? The choice depends on your goals. Using Snap Finance lease-to-own financing is great for getting immediate access to items you need when you don’t qualify for traditional credit. But if you’re focused solely on credit-building, a secured credit card can provide more long-term credit-building benefits because those payments are reported to the major credit bureaus.
Monitor your credit with free tools
Checking your credit report and score is important for everyone, not just for those with good credit. In fact, if your credit is less-than-perfect, it’s even more important to keep an eye on it.
Use free credit check services to monitor how your financial decisions are impacting your credit score. By law, each of the three major credit bureaus (Equifax, Experian, and TransUnion) are required to give you a free credit report every 12 months if you ask for it.
You can request a free report by visiting AnnualCreditReport.com, calling 877-322-8228, or sending a request by mail.
How Snap can help
Snap Finance lease-to-own financing doesn’t help build credit because Snap doesn’t report payment activity to the major credit bureaus. However, it offers convenient lease-to-own financing for people with less-than-perfect credit who need to get what they need now.1 While you can’t rely on Snap to boost your credit score, it can be a tool to use in addition to credit-building solutions like secured credit cards and personal loans.
If you’re ready to learn more or explore financing options, visit Snap Finance’s How It Works page and snapfinance.com. Use the Snap Finance Store Locator to find participating retailers online or near you.
For additional tips on building your credit and managing your finances, don’t miss out on Snap Finance’s Credit Blog, packed with useful resources tailored just for you.
Interested in learning more? Check out these additional resources from Snap Finance:
- Five ways to build your credit
- “No credit check” vs. “no credit needed” – What’s the difference?
- How a good credit score can make your life easier
- Best ways to build credit with a credit card
- Can I get a credit card with bad credit?
- Seven strategies to build your credit faster
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.
¹Not all applicants are approved. While no credit history is required, Snap obtains information from consumer reporting agencies in connection with submitted applications, and your score with those agencies may be affected.