Snap Finance® Study Reveals 44% of Credit-Challenged Consumers Rely on Financing to Pay for Major Purchases

Newly released research finds 39% of subprime consumers could not have paid for a recent $300+ purchase without financing, and nearly 47% report that financing availability influences where they shop

SALT LAKE CITY--(BUSINESS WIRE)--A new national survey from Snap Finance®, a leading fintech platform that drives retailer growth by expanding consumer access to financing, today released findings showing how credit-challenged consumers navigate major purchases amid ongoing financial pressure, and why financing availability plays a decisive role in where and how they shop.

The study, the latest installment in Snap Finance’s “Credit Gap” research series and the company’s second annual major purchase study, surveyed 2,873 U.S. adults who had made a $300+ purchase of products or services in one of 14 key categories in the past six months. Categories included furniture, mattresses, consumer electronics, auto service and repair, tires and wheels, appliances, jewelry, dental care, veterinary services, mobile phones, home repairs and home improvement.

The findings show that consumers with credit scores below 670 are more likely to rely on financing to complete major purchases and often make trade-offs when flexible payment options are unavailable or poorly communicated. Financing plays an increasingly prominent role in customers’ decision-making process, with 60% determining they need financing when they first begin to consider a purchase — an increase of 7 percentage points over last year’s findings.

Among the key 2026 findings for consumers with credit scores below 670:

• 39% said they could not have paid for a recent major purchase without financing.
• 47% said financing availability was an important factor in selecting the business where they made their purchase.
• 38% delayed a purchase, and 28% purchased a lower-quality item due to their financial situation or concerns about the economy.
• 39% of credit-challenged consumers who used lease-to-own or an installment loan spent more because financing was available; 53% of that group report they spent up to 20% more.
• 37% of credit-challenged consumers who did not recall learning about financing options said they would have considered financing had they known it was available.

“The results show that major purchases are often not discretionary — consumers may be replacing items that broke, addressing car repairs, or paying for necessary services. And for those with lower credit scores, access to credit is often an issue,” said Ted Saunders, CEO at Snap Finance. “For retailers and service providers, introducing simple and accessible financing options early in the shopping journey can help customers move forward while creating meaningful opportunities for growth.”

The research also underscores the importance of communicating financing options early and often. Only 46% of credit-challenged consumers overall recalled hearing about financing during the purchase process, most commonly through the business’s website, a store employee or social media. However, 37% of those who did not recall hearing about financing said they would have considered financing had they known it was available.

If financing had not been available, credit-challenged consumers who used lease-to-own or longer-term installment financing most often said they would have delayed the purchase until they had saved enough money (21%), foregone the purchase entirely (19%), or switched to another business that offered financing (18%).

“Financing is becoming an increasingly important part of the shopping experience for credit-challenged consumers,” said Saunders. “The data suggests retailers should make financing simple to understand and easy to find, especially because many consumers are making decisions quickly and may need to know their options before they ever reach checkout.”

Across all respondents, most major purchases were completed in-store, and more than half of consumers in both credit groups made their purchase within two weeks of determining they needed the product or service. For credit-challenged consumers, ease of purchase, total price, and speed of getting the item or service were the top factors in selecting where to buy.

For more detailed findings from the Closing the Credit Gap: Major Purchase Study or to learn about Snap Finance’s solutions for retailers, visit: https://snapfinance.com/info/closing-the-credit-gap-major-purchase-study-2026

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About Snap Finance

Snap Finance® is a technology-driven provider of flexible financing solutions designed to help consumers and businesses thrive. Since 2012, Snap has used advanced data science and proprietary risk modeling to view each consumer through a more holistic lens, helping more people get the things they need while empowering retailers to grow. Snap’s expanding ecosystem of products and services, including lease-to-own, loan solutions, and the Seen™-branded line of credit cards, promotes transparency, responsible credit use, and long-term financial confidence. For more information, visit snapfinance.com.