New Research Finds Growing Demand for Inclusive Financing Amid Rising Consumer Credit Challenges

Second Annual Snap Finance® Study Highlights Real-Life Effects of Subprime Credit Scores

Salt Lake City, UT – March 11, 2025 – Snap Finance LLC, a leading provider of innovative and flexible pay-over-time financing solutions, published their second annual study of Americans with and without subprime credit scores. The research reveals significant trends in the American credit landscape, particularly among those with credit scores below 670 and provides insight into the shopping behaviors and challenges facing the nearly 30% of U.S. consumers with subprime credit.

Snap Finance’s research underscores a persistent rise in the number of Americans classified as subprime borrowers, which has increased by 1.2 million in the last year alone. This shift influences market dynamics, as these individuals face fewer financing options and higher interest rates, which can profoundly impact purchasing decisions and access to essential goods.

Key findings from the report:

• 35% of credit-challenged consumers rely on financing to make ends meet – up 4% year-over-year.
• 78% of those with credit scores below 670 have been turned down for financing.
• A substantial proportion of these consumers, many of whom are employed, face significant hurdles due to their credit status.
• 70% of those with subprime credit scores are curtailing non-essential expenditures, yet their need for essential items like appliances and auto repairs remains high. In contrast, consumers with better credit scores exhibit less constraint in their spending habits.
• The research also points out a critical gap in information and financial education available to those with lower credit scores. These consumers often shop with less insight into their purchases, indicating a need for enhanced support and guidance from retailers.

Snap Finance’s study further emphasizes the shift towards alternative financing solutions, such as lease-to-own programs, which have seen an increase in interest among younger generations, including millennials and Gen Z. This trend reflects broader economic pressures and a more profound awareness of the various financing avenues now available.

“Snap’s second annual survey illuminates the struggles millions of Americans face and highlights the growing importance of alternative financing solutions that can meet the needs of an increasingly diverse consumer base,” said Ted Saunders, Chief Executive Officer of Snap Finance. “As the landscape evolves, we remain committed to leveraging technology and insights to help foster a more robust retail financial ecosystem for consumers.”

For more detailed insights from the study or to explore Snap Finance’s solutions, click here.

Follow Snap Finance on social media: LinkedIn | Instagram | Facebook | X

For media inquiries: media@snapfinance.com 

About Snap Finance

Snap Finance harnesses the power of data to empower consumers of all credit types to get what they need. Launched in 2012, Snap’s technology utilizes more than a decade of data, machine learning, and nontraditional risk variables to create a proprietary platform that looks at each customer through a more holistic lens. Snap’s lease-to-own and credit solutions are changing the face and pace of consumer retail finance. For more information, visit snapfinance.com.