New Study from Snap Finance Finds 37% of Consumers with Subprime Credit Need Financing to Pay for Essential Purchases

Exclusive research highlights challenges and opportunities for retailers to serve credit-challenged consumers

SALT LAKE CITY--(BUSINESS WIRE)--Snap Finance, a leading provider of innovative and flexible pay-over-time financing solutions, today released new research showing that 65% of consumers with lower credit scores said financing availability was important in choosing where to make a major purchase. The study, Closing the Credit Gap: Major Purchase Study, shows how limited financing access affects big-ticket purchases and essential servicing decisions, from appliances to auto repair.

“Our research highlights a growing credit gap that leaves millions of hardworking Americans with fewer options and tougher choices,” said Ted Saunders, CEO of Snap Finance. “At the same time, it represents a significant opportunity for retailers who can meet these customers where they are with creative financing solutions.”

Nearly half of credit-challenged consumers who used lease-to-own financing or installment loans reported spending more than they would have otherwise, and 51% of this group spent up to 20% more.

Key findings:

• Financial pressure is rising: 46% of consumers with lower credit scores describe their situation as unstable or very unstable; 37% say it has worsened in the past three months.
• Purchases are often delayed: 38% of credit-challenged consumers delayed a major purchase due to finances, compared with 24% of consumers with higher credit scores.
• Financing is critical: 46% of subprime consumers rely on financing to make major purchases.
• Retailer impact is significant: If financing was not available, more than 60% would have gone to a different business, not made their purchase, or delayed it.

Snap Finance partners with retailers nationwide to provide pay-over-time financing solutions, including lease-to-own and installment loans. In a survey of Snap merchant partners, retailers outlined the results they’ve seen from their Snap Finance partnership:

• 75% say partnering with Snap has increased their sales.
• 76% report customers get more with Snap Finance.
• 83% say they’re more likely to close sales with Snap’s solutions.

“Consumers’ financing experience reflects directly on the retailer,” said Saunders. “With industry-leading solutions and exceptional support, we’re proud to help retailers build loyalty while expanding access to essential goods and services.”

Download the full report: Closing the Credit Gap: Major Purchase Study

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About the Study

Snap Finance’s proprietary research on credit-challenged consumers was conducted in August 2025 through Accelerant Research's Agora panel with 2,700 U.S. consumers who are household financial decision makers who have made a $300+ purchase in the previous six months across one of 14 categories. Respondents’ answers were categorized by their self-identified credit scores above or below 670.

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 non-traditional risk variables to create a proprietary platform that looks at each customer through a more holistic lens. Snap’s lease-to-own and loan solutions are changing the face and pace of consumer retail finance. For more information, visit snapfinance.com.