New Snap Finance study highlights home improvement financing trends for 2026
Credit-challenged shoppers need home improvement, repairs, and essential services, but many don’t qualify for traditional financing. Snap Finance’s latest study highlights the differences in how shoppers with low or subprime credit shop and pay for products and services for their home.
Key takeaways
• Many credit-challenged shoppers rely on access to financing to complete major home improvement purchases or urgent repairs.
• Offering access to lease-to-own and loan options gives more customers the confidence to get what they need today, while helping businesses close more sales.
• Providing access to inclusive pay-over-time solutions builds trust, repeat business, and long-term community relationships.
• Partnering with Snap Finance supports growth and helps businesses reach more customers and increase revenue.
Shoppers with low or subprime credit scores still need your products and services, from HVAC systems and appliances to tools for their next DIY project. Don’t let them walk away empty-handed because of financing.
How big is this market of potential customers? According to Experian, 29% of consumers have a FICO® score below 670, which is often a roadblock to traditional financing.
Snap Finance wanted to learn more about how credit shapes the customer journey for major purchases and services, when credit access can be critical. In a recent survey, we asked consumers with and without credit scores below 670 about recent purchases of goods or services, including home improvement, repairs, and servicing, of $300 or more. In our report, “Closing the Credit Gap: Major Purchase Study,” we outline our findings.
The impact of financing on major home purchases
Credit-challenged customers make up a substantial portion of the home improvement customer base, but they often struggle to pay for major purchases and essential services for their home. Snap found that 42% of those with lower credit scores are homeowners.
For these customers, financing is not just another way to pay, it's the only way. Snap Finance found that without financing, 33% of those with credit scores below 670 could not have paid for their major home improvement purchase, and 36% of that same group could not have paid for their home repairs or servicing.
Snap can help you connect with these motivated buyers with lease-to-own financing and loan options, especially designed for those with less-than-perfect credit.1 Snap’s lease-to-own financing is available for durable goods, such as appliances, furniture, barbeque grills, lawn equipment, and tools. Snap-branded loan options are available for products and services with certain limitations.
Understanding the spending power of credit-challenged shoppers
Let’s talk about ticket size. Don’t assume shoppers with lower credit scores are only looking for low-cost items. These customers are ready and willing to make significant investments in their homes, especially when they have access to pay-over-time options that work for them.
In Snap’s study, the average purchase size among credit-challenged shoppers for home repairs and servicing was $4,043. For home improvement purchases, the average ticket was $1,340. These are substantial transactions that can drive real revenue for your business.
What's more, offering home improvement financing directly encourages these customers to spend more. The study found that 71% of credit-challenged consumers spent more on major home improvement purchases because financing was available. Of this group, 60% spent up to 20% more.
For major home repairs, 57% of credit-challenged consumers increased their spending with financing. Of this group, 75% spent up to 20% more.
Think about what this means for your business. A customer who comes in for a basic refrigerator might upgrade to a better brand or buy an additional appliance if they can pay over time. A power tool for an outdoor DIY project might turn into an additional purchase of patio furniture. Offering access to inclusive financing, such as Snap-branded lease-to-own financing and loan options, empowers customers to get more of what they truly want and need.
What motivates their purchases?
To effectively serve this market, it helps to know why they are shopping in the first place. Snap Finance found the primary drivers for credit-challenged consumers visiting a home improvement store for a major purchase include:
Wanting something new (43%)
Needing to replace an item in disrepair (35%)
Moving to a new home and needing items (28%)
These reasons highlight both desire and urgency. A broken-down washing machine or an HVAC failure in the middle of summer isn't a purchase that can wait. For these customers, a quick and accessible solution like appliance financing, for example, can be a game-changer.
Ready to learn more? Check out this infographic from Snap: Four factors that impact appliance purchases for credit-challenged consumers
Where they choose to shop
Snap found that shoppers with lower credit scores often prefer to support local businesses. When seeking home repairs and servicing, here’s where credit-challenged consumers shopped for a recent major purchase:
Local small business (53%)
Home improvement retailer (32%)
Large chain or manufacturer that repairs (13%)
This presents a huge opportunity for small to mid-sized businesses. By partnering with Snap Finance to provide access inclusive financing, you can become the go-to choice in your community, building loyalty with a customer base that others might be ignoring.
Learn more: Closing the credit gap: How credit-challenged consumers shop in 2025
The cost of not offering accessible, inclusive financing
Without a way to pay over time, many shoppers are forced to make difficult choices. These decisions not only affect the customer but also result in lost sales for your business.
Delays and downgrades are common
When financing isn't an option, the purchase is often put on hold or abandoned. Snap found that 29% of credit-challenged consumers would have delayed their major home repair or service – or not made the purchase at all. For major home improvement purchases, 29% would have delayed and 15% would have simply walked away.
Imagine nearly a third of your potential customers decided to wait. During that delay, they could find another business or their financial situation could change. You risk losing that sale for good. Others might downgrade, opting for a cheaper, lower-quality product that doesn’t fully meet their needs, leading to smaller sales for you and decreased satisfaction for them.
Your competitor becomes their solution
Perhaps the most compelling reason to offer inclusive financing is that customers with low or subprime credit will actively seek it out elsewhere. A significant 29% of home improvement credit-challenged shoppers said they would have gone to a different store if financing wasn’t available for their major purchase.
In a competitive market, you can't afford to lose customers over something as solvable as offering more ways to pay. If your competitor down the street offers access to financing that meets the needs of more customers – and you don’t – you’re handing them business. Shoppers will find a business that can better meet their needs.
How to reach and convert more customers
Capturing this market requires a proactive approach. It’s about more than just having a financing option; it’s about making sure customers know you have it and that it’s for them.
Market available financing options clearly
Integrate your financing message across all your marketing channels.
In-store signage: Consistent point-of-purchase signage ensures customers encounter financing options at every step of the journey. Snap Finance provides their retail partners with no-cost window clings, posters, brochures, checkout counter displays, and more to promote available financing.
Website: Feature a financing banner on your homepage. For its partners, Snap provides website banners that allow customers to start an application from your site with one click.
Social media: Promote the availability of financing options across your social media platforms. Snap Partners can generate buzz for your business with Snap’s free social media graphics.
Staff training: Your sales team is your front line. Provide your associates with talking points, and make sure they know how to start a financing application. Empower them to proactively mention point-of-sale financing as a helpful service.
Interested in learning more about promoting financing online and in-store? Read this blog from Snap Finance: Why financing options must be visible online, in-store, and beyond.
Align with seasonal sales and promotions
Many consumers, especially those managing tight budgets, plan their large purchases around major sales events like Presidents Day, Memorial Day, or Black Friday. These tentpole sales are a prime opportunity to promote your business and available financing.
Use these sales events to draw in customers, boost sales, and increase customer loyalty. Highlight in-store financing programs or partnerships with third-party financing providers, such as Snap Finance. Customers may not be able to get what they need without pay-over-time options. The availability of inclusive alternative financing options can keep customers from walking away empty-handed and help you close the sale.
Make financing options part of your promotions. A banner ad on your website, a mention in email campaigns, and in-store signage reminders can spread the word.
Look for financing providers with an easy application process
The financing application itself should be fast and frictionless. A long, complicated process can cause customers to abandon the purchase. Snap Finance offers a simple application that can be completed in minutes, with instant seconds. Customers can complete the application on their own device or online. This removes any potential discomfort and empowers them to see their decision before finalizing their purchase.
Measuring the impact of financing on your business
Implementing a new financing program is just the first step. To understand its true value, you need to track its impact on your key business metrics.
Approval rates and conversion: How many customers who apply are approved? How many of those approved customers complete a purchase? A high approval rate means you are successfully serving the credit-challenged market.
Average ticket value: Compare the average purchase size of customers who use financing to those who don't. You should see a significant lift, as the data suggests.
Lift during sales windows: Measure sales volume during promotional periods where financing is highlighted. Are you seeing a bigger boost than you did before offering financing?
Repeat purchases: Customers who have a positive financing experience are more likely to return for future needs. Track how many financing customers come back for another purchase.
Snap Finance provides access to performance reports to help businesses measure the impact of financing on sales and customer satisfaction at no cost to its retail partners.
Your next step to growing your business
The data is clear. A large, motivated group of consumers is actively seeking home improvement products and services. They have the need and the desire to make major purchases, but they often require home improvement financing to do so. By ignoring this market, you are leaving significant revenue on the table and losing customers to competitors who are meeting this need.
Partnering with a provider like Snap Finance can help you serve these customers. Increase your average ticket size, close more sales, and build a loyal customer base that will return for years to come with Snap.
Learn how you can partner with Snap Finance today.
Interested in learning more? Check out these additional resources from Snap Finance:
Why a customer’s experience with financing matters for merchants
Maximize your growth: Make Snap Finance a game changer for your business
Closing the credit gap: How credit-challenged consumers shop in 2025
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.
1 Not all applicants are approved. Approvals subject to underwriting qualification criteria.