How offering access to no-credit-needed payment options can boost sales
Show more shoppers a path to “yes.” Offering access to no-credit-needed financing widens your funnel, lifts conversion and average order value, and strengthens loyalty while staying clear, compliant, and easy to roll out across channels.
Key takeaways
No-credit-needed financing expands access, converting high-intent shoppers who are often excluded by prime-only options.
Clear, early messaging and fast decisions reduce abandonment and often raise average order value on big-ticket items.
Choosing a transparent, compliant partner – and integrating offers across touchpoints – turns inclusivity into a repeatable revenue engine.
Shoppers don’t just want another way to pay – they want a way to be included. For millions of customers with thin credit files or past credit challenges, traditional financing can be a closed door. No-credit-needed financing opens that door at the precise moment of intent, helping retailers convert high‑intent browsers into buyers while building long‑term loyalty.
And their numbers are growing. In the past year, an estimated 1.2 million more Americans have been categorized as subprime. That change ripples through the market, as these consumers typically have fewer financing avenues and encounter higher rates, factors that can materially influence purchase decisions and access to essential items.
By welcoming applicants beyond prime credit, merchants see wider funnels, more approvals, and higher revenue, turning inclusivity into a durable competitive edge.
Why accessibility is the new conversion strategy
Shoppers aren’t just price‑sensitive – they’re access‑sensitive. When a customer can’t use traditional credit, even high intent can stall at checkout. Credit barriers are widespread. Many consumers have thin credit files or scores below typical prime thresholds, which means qualified buyers get declined and leave your site or store empty‑handed. “No credit needed” financing gives these shoppers a path forward by letting them get essential merchandise now and make payments over time, without relying solely on a prime credit score.
What no-credit-needed really means
“No credit needed” does not mean “no underwriting.” For example, Snap Finance looks at multiple data points like income banking history, and can deliver decisions in seconds. That approach helps customers with minimal credit history or past credit challenges get a decision quickly, while giving merchants a compliant, repeatable path to capture demand they might otherwise lose.
Instead of relying primarily on a traditional credit score, many no-credit-needed programs evaluate current ability to pay – for example, recurring income, employment status, and recent banking activity. This approach is designed to recognize real‑time financial stability, which is especially helpful for thin‑file or rebuilding consumers. The result is a quick decision that does not depend on prime credit alone and can approve more shoppers through an inclusive, rules‑based process.
It’s also important to draw a clear line between “no credit needed” and “no credit check.” “No credit needed” means credit history isn’t the primary gatekeeper and applicants without a traditional credit profile are welcome to apply. It does not mean the provider skips verification. Reputable providers check credit and other data – evaluations aren’t based on credit alone – which is why applicants with poor or no credit may still be approved.
Snap Finance always checks credit. But keep in mind that because Snap's application results are not based on credit alone, customers can be approved even with poor credit or no credit. Not all applicants are approved and approvals are subject to underwriting qualification criteria.
Transparency is the cornerstone. Partners should disclose costs and terms clearly so shoppers understand when they’re entering a lease‑to‑own financing agreement (not a loan or revolving credit) and what it takes to own the merchandise.
How inclusive financing expands your customer base
For many categories, the customers most motivated to buy are the same ones most likely to be declined by traditional credit. “No credit needed” programs reach these underserved segments – new to credit, rebuilding credit, or thin‑file consumers – and can often convert them into customers today.
What's more, taking on these underserved customers doesn't mean merchants are taking on more hassles. The following are quick answers to common merchant questions about risk and other misconceptions:
“Are we taking on credit hassles?” In a lease‑to‑own structure, the provider purchases the merchandise and you receive payment – the provider manages the lease relationship and payments. That allows you to expand approvals without adding in‑house financing risk management.
“Will this hurt my customer’s credit?” With many programs, there is no impact to a customer’s FICO® score to apply. Providers may use alternative consumer reporting agencies to evaluate applications, so make sure customers read their lease agreements carefully.
“Isn’t lease‑to‑own confusing or predatory?” Properly administered programs are legal and regulated, with formal contracts and clear cost disclosures. Reputable providers explain terms up‑front and don’t charge late or cancellation fees. Customers typically can end the agreement by surrendering the merchandise per the contract. Encourage shoppers to read agreements and ask questions before signing. Snap Finance is a leading provider of lease-to-own financing.
Finally, inclusive payment programs also strengthen brand equity. When you promote clear, accessible options, you signal that your brand welcomes all shoppers. That can translate into higher satisfaction and repeat visits, especially when the application is quick, the decision is near‑instant, and shoppers can take the item home immediately and pay over time.
Key sales benefits for merchants
Here are the primary ways that no-credit-needed financing translates into measurable revenue impact across your funnel, from checkout completion to lifetime value:
Lower cart abandonment rates – When a shopper sees a viable pay‑over‑time path at checkout, they’re less likely to bounce after a decline or sticker shock. Near‑instant decisions keep momentum high. Among lease-to-own users with lower credit scores, 56% would have left the store if financing wasn’t available for a recent purchase, according to recent research from Snap Finance.
Higher average order values – Access to a defined approval amount lets customers right‑size their purchase within their approval, often stepping up to a better model. Snap Finance found that about 71% of the same lease-to-own users spent more on a recent purchase because lease-to-own financing was available, and a majority of them increased their purchase by 20% or more.
Expanded reach to new customer demographics – Welcoming applicants with poor or no credit unlocks younger shoppers, rebuilders, and thin‑file households – audiences many retailers struggle to serve.
Improved customer satisfaction scores – Clear terms, convenient payments, and the ability to use the merchandise while paying over time create a smoother experience that customers remember.
Competitive differentiation against BNPL‑only retailers – If competitors rely solely on prime‑leaning BNPL, offering a no-credit-needed lease‑to‑own option can win the share they decline.
Real results from no-credit-needed programs
Across a variety of spending categories, merchants use no-credit-needed options to capture essential purchases that customers can’t easily defer – a replacement sofa, tires before winter, or a ring for a milestone.
Automotive: Houston, TX – An auto body and repair shop added a no-credit-needed lease-to-own option and the results were more approvals at the moment of need, which meant more pleased customers and, as result, more sales. Stronger goodwill translated into repeat visits and referrals.
Furniture: Online – A furniture retailer introduced a no-credit-needed lease-to-own option so shoppers could take home essential pieces now and pay over time. The results were clear: more completed transactions at the point of intent and stronger goodwill from an inclusive payment path that welcomed all applicants to apply. The retailer reports steadier conversion and repeat visits driven by trust.
Wheel and tire: Thornydale, AZ – A full-service shop franchise offered a no-credit-needed lease-to-own option and saw a wider customer base and more sales as a result, as well as referrals from furniture retailers that used the same lease-to-own financing provider.
The common thread is simple – fast application, decision in seconds, and immediate checkout in‑store or online. Adding alternative payment options can often lift retail conversions and increase average tickets. In addition, when shoppers can use inclusive payment solutions, they’re more confident about committing to larger purchases – which often raises average order value. In a survey of Snap Finance retail partners, merchants reported that customers using a no‑credit‑needed option spend 59% more at checkout and 75% say partnering has increased sales.1
Implementing no-credit-needed options the right way
With the right provider, no-credit-needed payment options can be a win for you and your customers. That’s why selecting the right one is critical.
Choose a transparent, compliant, low-cost partner. Work with providers that offer clear agreements, upfront cost disclosures, and straightforward cancellation or turn‑in provisions. Financing partners who offer low or no fees are incredibly attractive. Snap Finance, for example, offers tertiary financing at no cost to businesses. Customers should receive plain‑English explanations of how flexible checkout financing works before signing.
Opt for a partner that drives new traffic. Financing providers can also help drive new traffic sources. For example, Snap Finance uses social media, digital ads, search engine marketing, in-store signage, and more to promote the availability of pay-over-time options and encourage new and repeat business.
Align on underwriting and risk. The right partner assumes the underwriting and hassles – you receive payment for the merchandise upfront. This structure lets you expand access without adding in‑house credit risk.
Agree on quick settlement of funds. Businesses are paid by most financing companies when the customer receives their merchandise. The customer then makes regular payments to the financing provider until the account is paid in full. How quickly a business receives their money after the transaction happens is critical to cashflow and day-to-day operations. Snap Finance, for example, expedites funding to their merchant partners, typically within 48 hours of a completed transaction.
Integrate seamlessly across channels. Customers move fluidly between in‑store and online, so your financing options should meet them wherever they shop – and be easy to find. Boost visibility and access with clear signage, scannable QR codes, and associate callouts at key decision points.
Promote accessibility in your messaging. Don’t bury the offer. Add no-credit-needed messaging on category pages, product pages, and at checkout, and train associates to introduce it for high‑consideration items. Effective onboarding, training, and ongoing support helps associates accurately explain third-party financing options and help customers through the application process. Snap Finance provides no-cost signage and marketing resources to let your customers know about financing options.
Measure and optimize. Build dashboards to compare cohorts with and without no-credit-needed usage – especially conversion rate, AOV, and repeat purchase rate. Many providers, including Snap Finance, provide access to performance reports to help businesses measure the impact of financing on sales and customer satisfaction. Finally, layer in seasonal campaigns – back‑to‑school, holiday, tax‑time, or tire‑changeover periods – where accessibility messaging historically performs well.
Interested in partnering with Snap Finance? Learn more about Snap and how we help thousands of businesses grow sales and revenue.
Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. For more detailed information, please visit snapfinance.com/legal/products
1Proprietary research from survey of Snap Finance merchants, 2023.