Understanding Customers With Less Than Perfect Credit

Brought to you by Snap Finance.

Life Changing events like marriage, divorce or transitioning jobs are some of the reasons why someone may become a credit-challenged customer, even if only for a short time. Experian classifies anyone with a credit score under 670 as a “sub­prime borrower” and estimates that nearly 35% of US consumers fall into this cate­gory, with millennials representing a signif­icant percentage.1

In 2019, the FDIC stated that 37% of Americans don’t have $400 to cover an unexpected expense, making access to financing solutions a major necessity for them. Their research also indicates that one out of every five households doesn’t have access to any type of credit, proving that credit has significant importance for both consumers and businesses.2

Without access to financing solutions like a credit card, personal bank loan or retail fi­nancing, these consumers require pay-over-time solutions to get the things they need.

Credit-challenged customers are spread across the US and despite being gainful­ly employed, they have limited assets and constrained incomes. Because of their sit­uation, these individuals fear being denied financing and either delay major purchases or shop around for deals in stores that offer flexible payment options.

Consumers with credit issues work hard to earn an income while facing life transitions that have impacted their ability to access tradi­tional financing. Like any other consumer, they need solutions to be able to afford major pur­chases and improve their quality of life. Lease-to-own financing offers that opportunity.


“Snap came into my life at a very difficult time when we just had a major fire in our home. Having to buy everything over was pretty difficult for us. I was so happy that someone would basically give me another change. It was an easy and wonderful experience. I'd recommend Snap to everyone, especially if you're having any difficulty.”

—Ruby M.  | LOS ANGELES, CA

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1 Subprime Consumers Across U.S. in 2021https://www.experian.com/blogs/ask-experian/research/subprime-study/

2 How America Banks: Household Use of Banking and Financial Serviceshttps://www.fdic.gov/analysis/household-survey/index.html