UPDATED: December 03, 2022

When you have bad credit, or you need immediate money even when your credit is good, sometimes it’s hard to access traditional financing. If you’re looking for an alternative option, you might have heard about Snap Finance.

But if you’re focused on building credit, you might wonder, does Snap Finance report to credit bureaus? Is it worth it?

That’s what we were thinking too. So we’ve done the research, checked official Snap Finance sources, and reviewed feedback from real users through independent sites.

You wouldn’t want to sign up immediately without understanding how it works. So, stick with us until the end and learn about the top factor that most consumers aren’t prepared for with this option.

What is Snap Finance?

Snap Finance is a financial service that provides flexible, pay-over-time financing options to consumers. It caters specifically to those with poor credit and who couldn’t qualify for traditional credit to fund their purchases, such as electronics, furniture, tires, and jewelry.

According to its website, Snap Finance partners with retail businesses and use a proprietary decisioning platform to assess consumer data. It helps empower customers to get the financing that they need and rebuild their credit as well.

Snap Finance was founded in 2012 and is based in Salt Lake City, Utah.

How Snap Finance affects your credit score

So, does Snap Finance reports to the credit bureaus?

If you get a loan from Snap through its Credit+ loan product, it reports the payment information to Experian. But for the lease-to-own and installment loans, Snap Finance only reports to secondary credit reporting agencies (CRAs), particularly Clarity and DataX.

When you apply for its lease-to-own and installment loans, Snap Finance does a hard inquiry with the CRAs. It will affect your credit score with these CRAs but not with Experian, Equifax, and TransUnion.

For Credit+ applications, Snap Finance uses Experian, which may affect your credit score.

How Snap Finance works

With Snap Finance, you can purchase high-priced items like computers, mattresses, furniture, and tires at its retail partners.

Those purchases are considered leased, which you will pay over time, usually 12 to 18 months. You also have the option to pay back Snap Finance within 100 days, which will reduce the cost of lease and save you money.

Aside from lease-to-own financing, Snap Finance also offers unsecured loans of $350 to $3,000. You can pay it for 12 to 24 months with interest.

So, what are the requirements to qualify for Snap Finance lease-to-own financing?

  • You must be at least 18 years old
  • You have an active checking account
  • You have a stable income of at least $750 a month
  • You have a valid email address or mobile phone number

You can only have one existing loan or lease-to-own at a time. Once you’ve paid it off, you can apply for another one.

How to apply for Snap Finance

Snap Finance has a simple and straightforward application process. You have three options:

1. Apply online

You can visit Snap Finance’s official website and click the Apply Now button on the page. You’ll be asked to fill out a form with your personal information, including your Social Security number and driver’s license number.

It only takes a few minutes to complete the form, and you’ll get the approval within seconds of submission.

You can use the approved amount at stores across the U.S. that accepts Snap financing. You can find a store here.

2. Apply in-store

You can also look for a store first that partners with Snap, then apply in-store through the text-to-apply feature using your mobile phone. A sales representative can also assist you with the application process.

Finding a store that accepts Snap financing shouldn’t be too hard. Snap claims that over 20,000 stores offer Snap.

3. Apply and check out online

Shopping online? Not a problem. If you shop with select eCommerce Snap partners, you can apply for financing on their platform and use the approved amount at check-out.

Once approved, you have 30 to 90 days to use the amount. Otherwise, it will expire.

Benefits of Snap Finance

Snap Finance comes in handy if you can’t qualify for traditional credit because of your past financial mistakes that hurt your credit. While its lease-to-own and loan installments aren’t credit-building tools, they can provide you some relief when you need cash to purchase some expensive items.

Meanwhile, its Credit+ loan can be used to build and rebuild your credit because Snap Finance uses Experian to report payment information.

Cost of Snap Finance

Snap Finance doesn’t publish its rates anywhere on its site. But based on our research, the total payment you’ll make can go anywhere from 1.5 to 3 times the original amount approved, plus applicable taxes and fees.

Snap Finance customers also face high annual percentage rates (APR), which most aren’t prepared for.

Snap has three payment options, so you can choose what best suits your needs.

  • Full-term plan – This is the default program, which is best if you’re looking for affordable monthly payments. However, this will have the biggest total payment.
  • 100-day option – This is the best option if you want to pay the lowest total cost. All you have to do is to pay what you owe within 100 days. That includes the principal amount, plus the processing fees and taxes.
  • Early payoff option – This is the most flexible option. If you can’t pay within the first 100 days, you still have a chance to pay earlier than the full term. You can pay your balance after 101 days in full and receive a discount.

It’s best to choose the option that suits your financial capacity to pay.

What others say about Snap Finance

Although you face high total payments because of fees and interests, Snap Finance is a legitimate company. It’s TRUSTe Certified and accredited by the Better Business Bureau (BBB).

It also has an Excellent 4.6-star rating on TrustPilot with 5,386 reviews. Most positive comments are from people who are grateful for the assistance they received from Snap. They also commended Snap’s staff for being helpful and providing excellent customer service.

On the downside, most negative feedback comes from customers who are surprised by the high charges they have to pay.


When you have poor credit, it’s hard to qualify for traditional financing. Snap Finance is a good option if you need to fund a big purchase. However, its lease-to-own and loan installment programs don’t help build your credit because Snap doesn’t report the payment information to the national credit bureaus. Only its Credit+ loan is reported to Experian, which may affect your credit score.