Lease-to-own 101: How Snap Finance works from application to ownership
Snap’s lease-to-own financing can help you get what you need. Here’s what you need to know, from application to ownership:
Apply in minutes online or in-store. Get a decision in seconds.
If approved, you can shop instantly with your lease-to-own financing approval amount.
It’s easy to manage your lease payments with Snap Finance.
When money is tight and credit scores are low, it’s difficult for many people to get what they need. For people looking to get big-ticket items with less-than-perfect credit, lease-to-own financing can bridge that gap.
One in four consumers (24%) with credit scores below 670 have used lease-to-own financing in the past five years, according to recent research from Snap Finance. That represents a 2% jump year over year.
Whether you’ve heard it called lease-to-own, rent-to-own, or lease-purchase, the concept is essentially the same. Lease-to-own financing is typically available on durable goods, such as furniture, appliances, electronics, mattresses, and tires.¹ In a lease-to-own agreement, the merchandise is generally available immediately or quickly delivered, making it a convenient option for essential items, such as appliances, that are hard to live without.
Snap Finance is a leading provider of lease-to-own financing. In a lease-to-own agreement with Snap Finance, Snap purchases the merchandise from the retailer and then leases the merchandise to you, the customer.
As part of your agreement, you make payments over time to Snap. Once you make all your payments and have completed the terms of your lease agreement, you obtain ownership of the merchandise and it’s yours.
What to know about lease-to-own financing
Lease-to-own or rent-to-own are opportunities to rent merchandise without the commitment of buying. It is not a loan or credit.
Lease-to-own financing is also typically more accessible to those who have bad credit or no credit, compared to traditional financing. That makes lease-to-own financing an option when you need something and don’t have the funds to pay upfront – and don’t qualify for traditional financing.
If that’s your situation, you’re not alone. Did you know that 29% of consumers have a FICO® score below 670, which is often a roadblock to traditional financing?
Snap Finance offers no-credit-needed lease-to-own financing.2 Whether you’re working with bad credit or no credit history at all,2 Snap Finance may be able to help you shop for the merchandise you need how and pay later.
Here’s an easy-to-follow breakdown of how Snap’s lease-to-own financing works, from application to ownership.
Step 1: Apply for Snap’s lease-to-own financing
The Snap Finance application process is designed to be fast and simple, whether you’re applying online or in a store.
Here’s how you can apply:
Apply online at snapfinance.com or through the Snap Finance mobile app (IOS or Android).
Apply in-store at one of Snap’s retail partners through our text-to-apply feature on your smartphone or a QR code. Look for information about Snap in the store or ask a sales representative for help. To find a Snap Partner, go to the Snap Finance Store Locator.
Apply and check out online with our select e-commerce Snap Partners. To find an e-commerce Snap Partner, go to the Snap Finance Store Locator.
What you’ll need to apply
· Be old enough to enter into a legal contract (18 or older in most states)
· Steady monthly income of at least $750
· Active checking account
· Valid email address and smartphone number
You can complete your application in a few minutes. You’ll need your personal information, including your Social Security number or an ITIN. You’ll also need your banking account and routing number, which you can find in your mobile banking app or on a check. You can also find your routing number on your bank’s website.
You’ll get a decision in seconds. And it won’t impact your FICO score to apply with Snap.²
When looking at leasing options, it’s important that you feel comfortable with the terms of the contract. Make sure you get answers to any questions you have before you sign any agreement.
Getting approved with low credit
Keep in mind that Snap always checks credit. But because Snap’s 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.
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.
Step 2: Get a decision
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.²
You’ll know nearly instantly if your application for Snap’s lease-to-own financing has been approved. If approved, you’ll receive an approval amount ranging from $300 to $5,000 in lease-to-own financing. This approval amount determines how much you can get with Snap’s lease-to-own financing.
But remember, this approval amount isn’t a loan – it’s a lease agreement. Snap will purchase the item on your behalf, and you’ll lease it and make payments over time to Snap Finance. Please refer to your specific approval terms in your lease agreement.
If you’re approved, Snap will provide detailed instructions on how to use your approval.
Step 3: Shop at a Snap Partner store
If you’re approved and you’ve chosen your merchandise, you can complete your transaction right then at checkout. Or you can shop with confidence, knowing you’ve been approved and your approval amount. Approvals may be valid for up to 60 days.
Snap Finance is accepted at thousands of partner stores across the U.S. Whether you’re looking for furniture, mattresses, electronics, appliances, or wheels and tires, the Snap Finance Store Locator makes it easy to find participating retailers online or near you.¹
How Snap works in a store
If you’re shopping in a participating Snap partner retailer, simply select the item you need, keeping in mind your approval amount. Then check out with the retailer using Snap to finalize your transaction. Snap Finance pays for the merchandise upfront.
There’s zero payment due at signing for most customers. However, there may be a processing fee or initial payment due the day you complete your transaction, depending on where you’re shopping. Check your lease agreement for specifics.
Although this is a lease, you can use the merchandise while making lease payments. Keep in mind that Snap Finance owns the merchandise until you’ve fulfilled the terms of your lease agreement with Snap.
What can you get with Snap’s lease-to-own financing?
The following product categories are currently approved by Snap for consumer and household purposes only:
Snap may also approve certain products within or outside of these product categories for lease on a limited or trial basis. Snap does not lease services.
Step 4: Managing your lease payments
The next step is managing your lease payments. Snap Finance offers several ways to complete your lease agreement. Payments are automatically set up to align with your paydays for the maximum length of the lease agreement. If you would like to change how often you make payments on your account or choose an early ownership option, you will need to contact Snap Finance.3
How to contact Snap Finance:
Call 877-557-3769
Go to the Customer Portal: customer.snapfinance.com
Snap’s default lease plan is 12 to 18 months. Or you can choose to buy out your lease early and save on overall lease costs.³ You can decide what payment plan works best for you.
To choose an early ownership option, customers must make all regular payments on time and schedule additional payments in the Customer Portal or by contacting Customer Care at 877-557-3769.³
Lease-to-own ownership plans with Snap Finance
Maximum-Term Plan (lowest payments)³
Customers make payments over the maximum 12-18 months of their lease agreement. This is the default payment schedule.100-Day Option (lowest overall cost) ³
Customers can save significantly on their cost of lease by making all regular payments on time and paying the required amount in the first 100 days. Customers must schedule this option.Early Buyout Option (most flexible option)
After the first 100 days, customers can also save on their cost of lease when they buy out their agreement before the end of the maximum term. Customers must schedule this option.
Under the terms of the lease agreement, you can end the relationship by surrendering the merchandise. Check your lease agreement for complete information.
For more information on ownership plans and Snap’s lease-to-own financing in general, check out the Snap Finance FAQ page.
Step 5: Ownership and lease completion
Completion of your lease is the final step to full ownership. Once you’ve made all payments and completed the terms of your lease, the lease ends and the item is officially yours.
You should owe nothing further – no additional fees, no extra steps. Check your lease agreement for more information.
What are the benefits of Snap’s lease-to-own financing?
There are benefits to lease-to-own financing with Snap Finance, including:
No credit needed² – All credit types are welcome to apply, which could make it easier to get what you need with no credit or bad credit.²
Easy application – Apply in minutes, in-store or online. Get a decision in seconds.
No waiting – Get what you need right away, without paying for the entire cost upfront.
Ownership plans that work for you – You can use the Maximum-Term Plan or choose an early ownership option to save on overall lease costs.³
You can also change how often you make payments on your account by contacting our Customer Care team at 877-557-3769.
Shop now, pay later with Snap’s lease-to-own financing
Snap’s lease-to-own financing can be a game-changer for shoppers, including those with less-than-perfect credit,² who need an alternative pay-over-time option for big-ticket items.
With an easy application, quick decisions, and a network of thousands retail partners, Snap Finance makes it possible to get what you need today and pay over time.
In five simple steps, more shoppers can get what they need:
Apply in minutes, online or in-store.
Get adecision in seconds for $300 to $5,000 in lease-to-own financing.
Shop at a Snap retail partner for eligible durable merchandise.
Pay over time with payments that work for you.
Own the merchandise once you’ve completed the terms of your lease agreement.
Visit snapfinance.com to apply online. Use the Snap Finance Store Locator to find a Snap retail partner online or near you.
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.
¹Some restrictions may apply on leasable auto parts, electronics, or sporting goods. Please check with merchants for details
²Not all applicants are approved. While no credit history is required, Snap obtains information from consumer reporting agencies in connection with applications, and your score with those agencies may be affected.
³The default payment plan is the Maximum-Term Plan, which includes 12- to 18-month renewable terms and is your highest cost option. To exercise an early ownership option, including the 100-Day Option, customers must make all regular payments on time and ensure the required amount is paid within the applicable timeframe via the customer portal or by contacting Customer Care at 1-877-557-3769. The 100-Day Option may include a cost of lease above the merchandise price.