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Katapult $3,500 Lease Credit Offering; How It Works

Katapult enables you to finance your purchases at several retailers online and offline through a lease contract with no hard credit check.

While it is one of the top buy now pay later furniture financing providers, you can also use it to get more items like electronics, car parts, music equipment, and others.

Though it is not there to help repair a bad credit score through its financing, using it will have no real impact on your bureau profile as it utilizes a soft inquiry to determine eligibility.



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Tip: Katapult is one of the top lease-to-own financing platforms and it offers up to $3,500 you can use for purchases starting from $300 in cart value with only a downpayment of $45 required. Its 90-day early buyout will make you save 100% on rental costs else, you could end up paying more than expected.


With several merchants spread across different industries, there is no doubt this is one of the top providers of checkout lease-to-own financing.

This platform is also innovative with alternative methods enabling you to use Katapult on Amazon, Best Buy, Walmart, and others for spread payments.


Read more about Katapult

It is widely preferred not only for its large merchant network but also for its moderate requirement before you can use it for financing your orders with only a soft credit inquiry required without affecting your bureau score.

When compared to popular options like Progressive Leasing and Snap Finance, it offers more alternative routes if you want to use it at retail locations that do not accept it directly.

Katapult has one of the best buy now pay later virtual cards which you can generate and use for payments on platforms like Best Buy, Amazon, Walmart, and others.

Alternatively, you can install its browser extension which is available for Chrome, and when on a shopping website that is eligible, it will be activated for lease-to-own financing.

All these secondary routes are in addition to its in-app shopping interface and for lease-to-own, only Acima has this kind of offering to enable you to enjoy the services more.

With Katapult having up to $3,500 in shopping limit you can access, it is a good payment plan option you can consider for handling essential item purchases.

However, it may be an expensive option if you do not understand fully how to maximize the early purchase opportunity it provides.

Katapult like every lease-to-own service provider will purchase the product and give it to you on a rental term which is expected to be repaid periodically for up to a maximum of 18 months similar to Snap Finance.

While the long-term spread payments may be a tempting fine print considering you get to enjoy small-sized periodic payments, the total at the end of the contract will be able to buy at least twice the original product.

To enable you to avoid this much, Katapult offers an early buyout option that you can utilize with no penalty within the first 90 days.

This will prevent you from paying the rental costs, and depending on your state, you could pay just an accumulated total equalling the price of the product.

Where to Use Katapult for Lease-to-Own Financing


Below are some well-known online stores that accept Katapult:




Wayfair is a renowned online furniture and home goods retailer, offering a vast selection of products for every room and style. Known for its extensive inventory, competitive prices, and user-friendly platform, Wayfair is a go-to destination for home decor and furnishing needs.



Sears is a well-established retailer, providing a diverse range of products, including appliances, clothing, electronics, and home goods. With a long history, Sears has been a staple in the retail industry, offering a wide variety of items for consumers across different categories.



Lenovo is a global technology company recognized for its innovative devices, including laptops, desktops, tablets, and smartphones. Renowned for quality and performance, Lenovo has established itself as a leading brand in the world of personal computing and technology solutions.



SimpleTire is an online tire retailer known for its extensive selection of tires for various vehicles. With a focus on simplicity and convenience, it provides customers with an easy and efficient way to find and purchase the right tires for their needs.



Casper is a well-known mattress and sleep product company, specializing in innovative and comfortable mattresses. Recognized for its commitment to quality and customer satisfaction, it has gained popularity for offering a better sleep experience through its mattress designs.

Parts of the Katapult Lease Contract

Like every financing service, you are expected to agree to the terms when submitting an application to use Katapult for making payments.

Since the document contains too many items, you may miss reading through some essential parts of it including the below:


Cash Price

The cash price, often referred to as the original product cost, signifies the total retail value of a product when purchased outright through a single lump sum payment.

This amount is what a buyer pays without opting for Katapult or any buy now pay later option at checkout.

Comprising the complete cost of the item, the cash price excludes any additional interest, fees, or finance charges associated with alternative payment methods such as credit or leasing.

Incorporating the cash price into the Katapult contract is a standard practice, as other related costs are derived from it.


Lease Duration

The lease duration signifies the time required for the contract to conclude, resulting in full ownership of the product if all payments are made as scheduled.

The default lease payment term spans from the inception of the contract to the completion of the 18th month.

During this timeframe, regular payments are made according to the lessee’s preference, whether weekly, bi-weekly, or monthly, as outlined in the lease agreement.

Upon successful completion of the lease duration without any payment defaults, the product will become 100% that of the person who leased the item.


90-Day Early Purchase Option

Katapult’s 90-day early purchase option (EPO) provides flexibility and convenience for customers looking to own their leased items sooner in order to avoid paying the huge lease costs associated with long-term contracts.

The terms of the EPO vary depending on the state regulations, ensuring compliance with local laws and providing a tailored experience for users across different regions.

For customers in Connecticut, Hawaii, Indiana, Iowa, Maine, Michigan, Nebraska, South Carolina, and West Virginia, the EPO price within the initial 90 days is calculated as the sum of the leased item’s cash price, 5% of the cash price, and $45. This amount is then adjusted by deducting all lease renewal payments made (excluding taxes or fees) and adding the applicable sales tax.

In California, during the first three months, the EPO price is determined as the item’s cash price, reduced by all lease renewal payments made (excluding taxes or fees), and supplemented by sales tax.

For customers in all other states, the 90-day EPO price is computed by adding the leased item’s cash price and 5% of the cash price. This is further adjusted by subtracting all lease renewal payments made (excluding taxes or fees) and including the relevant sales tax.


Early Purchase Option

This option is an alternative to the 90-day early buyout and it is only applicable if you miss using the first option.

You can utilize this starting from the 91st day but note that this will not offer the same savings as the first because, at this stage, you will be required to pay some fee to cover rental.

However, what you will save is based on how early you close out the contract through the early purchase option it offers, and depending on the stage, you can enjoy savings between 7% to 37%.


Cost of Lease

Within the Katapult agreement, the term “lease-to-own cost” includes the comprehensive amount that you, as the lessee, are accountable for during the leasing period.

This includes all the expenses associated with renting the product throughout the entire lease term.

It is already part of your monthly payments as the sum of the lease cost together with the cash price will give you the total amount required for ownership.

In simpler terms, consider the lease-to-own cost as the accumulated rental fee spanning the entirety of your lease agreement.

It includes all the expenditures linked to renting the product until the point where you decide to make the final purchase.

Note that this is not needed if you exercise the 90-day early buyout option as you will avoid paying any value for rental.


Initial Payment

In the leasing agreement, your initial payment is the upfront financial commitment that marks the beginning of the lease contract.

This payment of $45, made at the start of the lease, covers various components, including the first installment, applicable taxes, and fees to activate the contract.


Total Payments

Your total payment represents the comprehensive cost of ownership, achieved by adding the original price of the product to the associated lease costs.

Importantly, this total payment is already incorporated into the periodic repayment cycle, eliminating the need for a separate payment.

Throughout the lease term, each installment contributes towards the total payment, covering both the product’s initial cost and the agreed-upon lease expenses.

How Katapult Works

Upon applying for a contract with a retailer that accepts Katapult, the process involves Katapult purchasing the desired product on your behalf. Subsequently, Katapult leases the item to you, and you are obligated to repay the cost through periodic installments. These installments continue until you decide to exercise any available early purchase options or until the end of the contract term, at which point the item becomes fully yours.

Katapult Process Flow

Below are some of the processes involved when using Katapult for financing your orders:


User Application for Lease

This step serves as your official request to initiate a lease agreement for a specific product.

To facilitate this process, when submitting your application, you will be required to provide personal details like your name, address, and contact information, in addition to financial information such as your income.

If you are completing the application on the merchant’s website during the checkout process, rest assured that the form is user-friendly, enabling you to complete it swiftly, typically within minutes.

For a smoother experience, ensure that your smartphone is active, particularly when you are using the option at a physical location.

This is essential as you will be sent an OTP to your provided mobile number which you need to enter on the form for validation.

The application form is easy to use and you should be able to provide the essential details including your name, income information, valid ID, bank details, Social Security Number, address, and contact information.

Once all necessary information is provided, simply click the submit button.

Your details will be sent to Katapult for processing through an automated system, and subsequent validation steps will be completed in due course.


The Lease Decision Stage

During this phase, the decision-making process is entirely automated, utilizing the information provided in the initial stage. It takes only a few minutes for a decision to be made regarding your application.

The automated process involves a soft credit inquiry, also known as a soft pull or inquiry, conducted by Katapult. This check is solely for informational purposes and does not impact your credit score.

The results of this soft inquiry are then used to evaluate your spending limit, determining whether you can realistically repay the lease costs over the agreed-upon period.

Subsequently, taking various determining factors into account, a decision is reached on both the lease credit and the overall contract. You will either receive approval to acquire the product, or your application may be declined.

It is crucial to note that Katapult, similar to some of the other lease service providers, does not solely rely on your credit score for approval. Even if you have a less-than-ideal credit standing, you may still qualify based on other factors considered by Katapult.

This inclusive approach increases the likelihood of approval for individuals with diverse financial backgrounds, providing an opportunity for a wider range of customers to access its lease financing.


Product Lease Stage

After your application is approved, the product will be prepared for delivery to you; however, receiving it is based upon the successful processing of the deposit, often referred to as the initial payment.

In this phase, Katapult acts as the intermediary, acquiring the item from the merchant on your behalf and opting to lease it to you.

It is crucial to note that, akin to the dynamics of renting from a friend, Katapult, serving as the lessor, retains the authority to reclaim the product from you at any point during the contract period.

This is similar to the scenario where a friend may request the return of a borrowed item, emphasizing the lessor’s right to take back the product throughout the lease contract.

Understanding and adhering to the terms and conditions of the lease agreement becomes paramount in ensuring a seamless and uninterrupted possession of the leased item.


The Repayment Stage

Upon activation of the contract, the responsibility for ongoing lease cost repayment rests on your shoulders.

It is essential to emphasize that payments for the product are directed straight to Katapult, not the merchant.

This distinction arises from the fact that Katapult has already settled the full product cost with the merchant before you took possession of the item.

Your commitment involves making regular payments according to the frequency you selected during the application stage. Typically, these payments occur on a weekly, bi-weekly, or monthly basis.

Understanding this payment structure is crucial for maintaining clarity and ensuring that you can consistently meet your financial obligations throughout the duration of the lease.


90-Day Early Purchase

Katapult extends a valuable proposition to lessees with its 90-day early purchase option, offering a distinctive avenue within the leasing contract.

In this unique offer, if a lessee successfully makes the full payment within the initial 90 days, the total amount paid will be the exact price of the leased item for those in California. For most other states, it represents a slight percentage above the cash price.

This 90-day timeframe grants lessees the advantage of paying an amount equivalent to a cash purchase, introducing flexibility and a user-friendly payment window.

This is the best time to close the Katapult lease-to-own contract and enjoy the best savings as after this period, the cost will be very high and maybe, unexpected.


Early Purchase Option Stage

In the event that the 90-day early purchase option slips by, lessees still have a favorable opportunity to bring their Katapult contract to a conclusion within a short period afterward.

While the potential savings at this stage may not match the initial 90-day option, there are still notable advantages linked to settling the full cost of ownership.

Although the savings vary depending on the timing of the decision, they can be substantial, ranging from 7% to 37% on rental costs.

This implies that even after the 90-day period has lapsed, lessees can experience significant reductions in costs by making the full payment for the leased item during this subsequent window.


Full-Term Ownership

The concluding phase of the contract typically occurs around the eighteenth month.

Upon summing up all payments made since the lease commencement at this juncture, you will observe that the total surpasses double the initial price of the product, underscoring the importance of exploring the early purchase option.

While the monthly payments may appear modest when viewed individually, their cumulative impact becomes clear when considering all payments collectively.

If you have maintained a consistent record of making payments on time at this stage, the product will become yours and the contract will come to an end.

Frequently Asked Questions on Katapult


Here are some frequently asked questions regarding the use of Katapult for product lease financing:


What is Katapult?

Katapult is a platform that specializes in providing lease-to-own options for consumers looking to acquire various products, such as electronics, furniture, appliances, and more.

The company offers an alternative to traditional financing methods and allows customers to lease products with the option to purchase them over time.

Katapult collaborates with a network of retailers to offer its services. When a customer applies for a lease through Katapult, the company assesses the application and, if approved, facilitates the purchase of the desired item on behalf of the customer.

The customer then enters into a lease agreement with Katapult, making periodic payments over a specified period.

Does Katapult check credit?

Yes, Katapult conducts a soft credit inquiry when reviewing lease applications. This kind of credit check also referred to as a soft pull or inquiry, serves informational purposes and does not have any impact on your credit score.

Its primary function is to enable Katapult to evaluate specific financial aspects, determine your eligibility for the lease, and establish the spending limit for the lease agreement.

Is Katapult legit?

Katapult is a legitimate and reputable company that allows customers to acquire various products through a leasing arrangement with the option to purchase over time. It partners with a network of retailers to offer its services.

What is the maximum credit amount offered by Katapult?

You can access a maximum credit amount of $3,500 when utilizing Katapult for payment.

It is essential to recognize that the specific value or purchasing power assigned to you is contingent on various factors assessed by the company through its soft inquiry and the information you provided during the application process.

Does Katapult have a virtual card?

Yes, there is a virtual card provided by Katapult called Lease Pay Card you can use for lease-to-own financing at several retailers.

You can apply for it on the app when you are logged in and if approved, you can copy the details and use it like every other debit or credit card for online purchases or offline at qualifying retailers using one of the top digital wallets.

Can I pay off Katapult early?

Yes, Katapult allows customers to pay off their lease early. They provide an early purchase option, which enables you to buy the leased item before the end of the lease term.

This can be a convenient option if you wish to own the product outright sooner than originally agreed upon and the 90-day option offers you the best opportunity to save on lease cost.

Keep in mind that the details of early payment options post the 90 days, including any associated fees or discounts, may vary based on the terms and conditions of your specific lease agreement with Katapult.

It is advisable to review your lease agreement or contact Katapult directly to get accurate and personalized information regarding the early payment options available to you.

What is the downpayment to use Katapult?

The downpayment is $45 which is the initial payment required to activate your Katapult contract and confirm the validity of your connected repayment method.

Is there a minimum spend amount to use Katapult?

Yes, the required minimum cart value to use Katapult for lease-to-own purchases is $300.


With its soft requirements for financing, it can be a good alternative payment plan option to utilize for handling your orders.

However, opt for Katapult if you can take advantage of its 90-day early purchase option to save on lease costs.

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