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Snap Finance Research Reveals Almost Half of Credit-Challenged Consumers Will Not Transact with a Store That Lacks Financing Options

News BlogPress ReleasesSnap Finance Research Reveals Almost Half of Credit-Challenged Consumers Will Not Transact with a Store That Lacks Financing Options
Mar 05, 2024

Salt Lake City, Utah –  March 6, 2024 – Snap Finance, a provider of fast, flexible pay-over-time financing options, today announced new research findings that underscore the powerful market potential of Americans with lower credit scores. The research and resulting report, “Tapping in to an untapped market: An in-depth look at consumers with credit challenges,” debunk common misperceptions about this customer segment and reveal why offering flexible payment options can result in significant sales opportunities for retailers.

Snap Finance sought to better understand Americans with credit challenges, specifically those with FICO® credit scores below 670. Working with Accelerant Research, Snap Finance surveyed consumers with and without credit challenges to learn how they shop and pay for what they need.

“We know many people are overwhelmed by financial obstacles, especially those with less-than-perfect credit,” said Rob Barnhart, president of Snap Finance. “Our survey confirmed that retailers who do not offer more inclusive, flexible payment options are losing opportunities with this important customer base.”

The report outlines several key findings.

Without flexible financing options, credit-challenged consumers will shop elsewhere. If financing options aren’t available, 44% of those with low credit scores said they would go to a different store that offers financing options to make a purchase. Retailers offering flexible payment options for more customers can often close larger and more frequent sales. Among those with FICO scores below 670, 58% said they spent more because financing was available. And among those who spent more, 79% increased their purchase by $100 or more.

Credit-challenged consumers continue to shop for essential products and services. Inflation and the rising cost of living are taking a toll. Among those with lower credit scores below 670, 70% have recently cut back on nonessential purchases, such as vacations. However, they continue to shop key product categories, including auto service or repair (42%), electronics (42%), appliances (26%), furniture (24%), tires and rims (22%), and mattresses (16%).

Consumers who need financing can’t always get it. Snap’s research found that 70% of those with FICO scores below 670 are living paycheck to paycheck and 74% would have difficulty paying for a major unexpected expense. With little room for error, 31% of these consumers said they rely on financing to make ends meet. However, 76% of consumers with low credit scores have been turned down for financing in the past.

Nearly half of consumers with low credit scores have used pay-over-time financing. Over the past five years, 45% of consumers with FICO scores below 670 have used installment loans to pay for major purchases, and 22% have used lease-to-own financing to get what they need.

To learn more about consumers with credit challenges – and what retailers can do to build loyalty with this important customer segment – go to


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 brings together more than a decade of data, machine learning, and nontraditional risk variables to create a proprietary decisioning platform that looks at each customer through a more holistic, human lens. Snap’s flexible solutions are changing the face and pace of consumer retail finance. For more information, visit

The content of this article is for informational purposes only and should not be construed as personalized legal, financial, or other advice. This article represents paid promotional material provided by or on behalf of Snap Finance, LLC, or its affiliates.