Snap Finance payment options vary and you can enjoy zero interest rate or no lease costs within the first 100 days through its early buyout.
When it comes to lease-to-own focused buy now pay later services, Snap is up there among popular options that include PayTomorrow, Katapult, Acima, and Progressive Leasing, among others.
Because lease financing can be expensive if you continue the contract until the last month, many of them including Snap Finance offer early purchase options which you can utilize without paying any extra other than the exact price of the product.
Snap Finance
Max. Amount
$5,000
Credit Check
Soft
Type
Lease
Tip: Snap Finance offers up to $5,000 in shopping credit which you can use at several merchants for purchases with the possibility to spread payments up to 18 months.
Understanding how Snap Finance works is very essential before you use it for financing your purchases at any of the merchants that have it at checkout.
Considering that the leasable items are of high value, usually from its minimum spend amount of $150, it is worth having a view of its payment options to avoid paying too much when using it at any of the online stores that accept Snap Finance for tires, electronics, appliances, and others.
It uses a simple credit check to figure out how much you can spend on a lease-to-own basis with certain retailers.
When you apply for a Snap Finance payment plan, you need a minimum cart value of $150, and you can spend up to a maximum limit of $5,000.
The platform works on a lease-to-own system without regular interest rates; instead, there is a rental cost.
It is essential to understand this to avoid paying more than the original product price.
To save money, it gives you a great option to buy early within 100 days. If you finish paying within this time, you only pay the initial item price.
Even though it allows you up to 18 months to pay, it is smart to finish paying within the first 100 days to avoid paying a lot in lease costs.
If you keep making the Snap Finance payments until the end of the contract, you might end up paying more than double the original product cost.
It is good if you are sure you can pay in full within the first 100 days for maximum savings.
Where to Use Snap Finance for Lease-to-Own Purchases
Below are some of the top online stores that accept Snap Finance for payments:
Layla Sleep
Layla Sleep offers premium sleep products, including mattresses and pillows, designed for comfort and support. Their copper-infused memory foam helps regulate temperature, providing a cool and restful sleep experience. With a 120-night trial, Layla Sleep prioritizes customer satisfaction for a rejuvenating night’s sleep.
Allurez
Allurez is a fine jewelry brand specializing in exquisite and customizable pieces. With a vast collection of engagement rings, wedding bands, and gemstone jewelry, it combines quality craftsmanship with timeless elegance, offering customers a luxurious and personalized shopping experience.
TireBros24
TireBros24, a prominent online tire retailer, distinguishes itself with a comprehensive inventory for diverse vehicles. Recognized for competitive pricing and a user-friendly interface, the company prioritizes delivering quality tires, ensuring customers experience a seamless and convenient online shopping journey.
Dfuser
Dfuser stands out as a brand in the world of diesel engine performance, offering a variety of car parts like tuners, modules, and accessories. Recognized for its dedication to enhancing power and efficiency, it provides reliable solutions to optimize the overall performance of diesel engines.
Marlo
Marlo Furniture is a well-established furniture retailer, primarily serving the Maryland, Virginia, and Washington, D.C. areas. Known for its extensive selection of quality furniture, including living room, bedroom, and dining room pieces, Marlo Furniture aims to provide stylish and affordable home furnishing solutions.
Snap Finance Contract Structure
Before looking at the payment options when using Snap Finance, it is good to have a brief view of the contract structure as it will aid your understanding:
Below is a detailed explanation of the content shown in the image above:
Full-Term
This refers to how long (maximum) you can spread the payments which is 18 months for a full-length Snap Finance contract.
Other things such as the total payments based on your periodic repayment schedule (weekly, bi-weekly, and monthly) selection will depend on this.
Cash Price
Cash price is the cost of the product you want to purchase on a lease-to-own plan using Snap Finance.
It is the original price if you were to pay upfront for the item directly to the retailer using your debit, credit card, PayPal, or any other non-payment plan checkout option.
Cost of Lease
This is the tricky part of the contract and most new users without properly understanding it go into the lease agreement only to realize the payments skyrocketed at some point during the contract.
When you make purchases with Snap Finance, the item is not yours because the company (Snap Finance) bought it based on your request and rented it to you.
The ‘cost of lease’ is what you pay for renting the product through the contract and it is calculated at the beginning and added to the cash price which is then split into smaller payments on a periodic basis.
Your weekly or monthly payment (depending on your preference at the start) is based on the addition of the cash price and the lease cost.
The reason rent-to-own options are usually expensive is because of this lease cost but as a practice, many of them offer early purchase options and if you can complete the full payment within 100 days (for Snap Finance), you will be forgiven the ‘cost of lease’.
Processing Fee
Snap Finance charges a processing fee of $39 which is required for your lease application to be approved.
Considering that you are required to make payments in small bits periodically, it is important to confirm that the autopayment method you are connecting to your account is valid and fits for auto debits.
This is required and can be handled through the Snap Finance app when submitting your application for lease financing.
Total Payments
This refers to the sum of all the periodic payments and by convention, a total of this will result in the full ownership of the product.
It is simply the addition of the cash price and the lease cost. If you look at the value, it is more than twice the original cost of the product.
You probably will understand why it is important to utilize the 100-day early purchase option offered by the platform to avoid paying this much.
If for some unforeseen circumstance, you are unable to pay the full price within the first 100 days, there is a grace to enjoy some savings after that rather than waiting until the end of the contract.
Snap Finance Payment Options
Snap Finance payment options vary depending on the stages of the contract.
Below are all the terms from the first day of the contract till the end of the lease period:
Initial Payment
Period
Day 1
Estimate Cost
$39
Your initial payment with Snap Finance is the first one you make when your application is approved, and it is due on the first day of the contract.
To be able to get the product, this payment must go through successfully. So, make sure the connected repayment method has enough funds to cover this initial cost.
Typically, the charge for this first payment is $39, and it will be deducted from your card or other preferred payment methods before the lease is fully approved.
Once this payment is successful, you will receive the item. This usually happens after you have gone through the contract, agreed to its terms, and given the green light for the contract to move forward.
In the contract, it is termed a processing fee.
100-day Early Purchase Payment
Period
First 100 days
Estimate Cost
Same as Cash (Original Price of the Product)
With Snap Finance, you have a unique opportunity to complete your payments within the initial 100 days, ensuring you will not incur any additional lease costs. This means you will pay the exact product price.
Snap Finance stands out by offering the longest same-as-cash early buyout term when compared to other lease services like PayTomorrow, Acima, and others.
You can defer full payments until the 100th day without any extra costs, providing flexibility not commonly found in similar services.
Early Purchase Option
Period
Day 101 – 17th Month
Estimate Cost
More than 65% – 85% Above Cash Price
Here is another option for an early buyout payment that you can use after the initial 100-day period designed for product ownership. This option typically applies from the 101st day up to the 17th month.
During this stage, the costs involve a rental component, meaning you will not pay the exact product price. Instead, the expected payment is more than 65% or 85% higher than the original item’s price.
The amount you pay at this mid-term juncture depends on when you decide to utilize it. The earlier you choose to exercise this option, the less you will pay in lease-to-own costs.
To illustrate, if you purchased a mattress on buy now pay later terms through Snap Finance for $500, by the fifth month at this mid-term stage, the cost for full ownership could end up being $625 or more.
It is important to be aware of this structure to make informed decisions about when to opt for the early buyout.
Full-term Payment
Period
18th Month
Estimate Cost
Cash Price + Cost of Lease
This marks the final stage of your contract, signifying the completion of your Snap Finance payments at the conclusion of this month.
Upon meeting all repayments at this point, ownership of the item will be fully transferred to you, bringing an end to the lease-to-own purchase.
Your monthly payments are calculated by dividing the sum of the cash price (original product cost) and lease-to-own costs (rental fees) into 18, resulting in manageable monthly repayments.
At the contract’s conclusion, the total payments made to Snap Finance since the lease’s initiation will be double the original product cost.
For example, consider a cell phone acquired through Snap Finance with an initial price of $498. At this stage, it could cost approximately $1,120.50 or more, exceeding twice the original cost.
The optimal time to settle the full payments and conclude the contract is within the initial 100 days, allowing you to benefit from the same-as-cash advantage. This period provides a cost-effective opportunity for securing ownership without incurring additional expenses.
Snap Finance Payment Calculator
You can use the calculator below to estimate your Snap Finance payment and have an understanding of how much you could save at each stage of the lease-to-own contract.
Note: this Snap Finance payment calculator is for estimation. While it was created through references to its contract and payment structure, the final values might differ when using it for financing your purchases. Still, the result is expected to be very close to what is obtainable in the real agreement.
Snap Finance Payment Methods
When it comes to repayment for all lease purchases using Snap Finance, you have three methods for remittance:
Bank Account via ACH
Snap Finance provides customers with the convenient option of setting up automatic debits from their bank accounts.
Opting for automatic debits adds a layer of convenience, ensuring that payments are deducted seamlessly on the scheduled date.
By authorizing auto debit, customers significantly decrease the risk of missing payment deadlines.
This practice guarantees that lease installments are consistently paid on time, fostering a positive credit history and preventing any potential late fees.
Debit or Credit Card
Customers have the flexibility to enroll in autopay using either a debit card or a credit card.
This adaptable approach empowers customers to select the payment method that best aligns with their financial preferences and takes advantage of any rewards programs associated with their credit cards.
Managing autopay is hassle-free and can be done through the Snap Finance mobile app.
Alternatively, customers can log in to the web portal, and access their dashboard to set up autopay with their chosen debit or credit card.
Snap Finance Payments Frequently Asked Questions
Below are some frequently asked questions relating to payments for Snap Finance lease-to-own contract:
How much is the Snap Finance down payment?
The downpayment required when using Snap Finance at any of its retail partners is $39 which is called the processing fee in the contract and it is needed to activate the contract.
How to change the Snap Finance payment date?
For a permanent change to your Snap Finance payment dates, reach out to the support team at least three days before your upcoming due payment. You can find contact details on the contact page for assistance or simply chat with the team using the app.
If the need is temporary, and you wish to make a payment before the scheduled date, you can easily do so by logging into your account. Navigate to the ‘Schedule Payment’ section and select the ‘Lease Details’ option.
Underneath, click on ‘Select a Payment Method’ and you will be able to select a connected payment method that you want to use for the additional payment.
Once this is selected, you will be able to pay an extra amount other than your next scheduled periodic payment value.
Can I make Snap Finance payments late?
Snap Finance offers the possibility of adjusting your next scheduled payment if you notify them at least 3 days before the upcoming due date.
In situations where you anticipate difficulty making the payment on the scheduled date mentioned in your contract, you can request a late payment by informing Snap Finance in advance of necessary adjustments.
It is important to note that if you miss informing them about any adjustments, Snap Finance does not provide a grace period. In such cases, the platform will attempt to debit your connected repayment methods on the specified due date.
What happens if I miss Snap Finance payments?
Missing your scheduled Snap Finance payments may result in a non-sufficient fund fee being applied.
Apart from the potential penalty fee, delaying repayments means you will continue accumulating rental costs, making it increasingly challenging.
To avoid these issues, it is advisable to enable the auto-pay feature and link both your debit/credit card and your bank account. This ensures your lease payments are consistently made on time, preventing additional fees and complications.
Can you pay off Snap Finance?
To settle a Snap Finance agreement ahead of time, navigate to the ‘Schedule Payment’ section when logged into your account.
Choose the connected method you prefer for early payment.
Taking this step not only allows you to complete your agreement early but also helps you save money
Continuing payments until the contract’s conclusion can be expensive, often resulting in a total cost that is double the original price of the leased product. Settling early provides a cost-effective alternative.
Where can I get more details regarding Snap Finance payments?
The platform provides a comprehensive frequently asked questions page that covers this and some other topics regarding how its services work.
Understanding how the Snap Finance payments work is important before you continue with the contract and if you can, utilize the 100-day buyout option to save 100% on rental costs.
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