Survey Shows Financing Drives Sales—and Loyalty—Among Low-Credit Consumers

The new Snap Finance Major Purchase Study tells a disturbing tale. Almost 3 in 10 borrowers with subprime credit scores require financing to afford basic necessities. The report indicates how millions of Americans with weak credit are pinched by restricted access to affordable credit.

About 47 million Americans now have FICO scores below 670, a number that grew by 1.2 million in the last year, according to Snap. That demographic includes many working families — nearly half work full-time — trying to make ends meet.

The study shows that 73% of subprime borrowers live in households that earn under $75,000. More than one-third are millennials who must manage debt, inflation, and low wages.

“More than a third of those with subprime credit need financing just to cover the basics. That’s not a small market problem — it’s a national one,” said Snap Finance CEO Ted Saunders.

The survey included more than 2,700 U.S. households that made recent purchases of over $300. The availability of financing guided the shopping choices of 65% of low-credit consumers.

Half of those who used lease-to-buy or installment loans bought pricier versions or extra items because of financing — 51% said they spent up to 20% more.

But when needs can’t wait, these buyers often turn to flexible financing. Thirty-seven percent said they couldn’t have made a big buy without financing, and 46% said they need financing to make major purchases in general.

Many also reported they would have shopped at another store had financing not been offered — which indicates that including financing on the menu keeps shoppers from walking out the door.

How Financial Stress Changes Shopping Decisions

Shoppers with subprime credit feel heavy economic stress. Forty-six percent of low-credit consumers described their finances as unstable or very unstable, and 37% said things had worsened over the last three months.

“More than a third of those with subprime credit need financing just to cover the basics,” said Snap Finance CEO Ted Saunders.

That anxiety affects when and how they buy. The study found 38% delayed a major purchase because of financial concerns — compared with just 24% of higher-credit consumers.

Why Financing Builds Long-Term Customers

Snap’s retailer partners reaped benefits too. Seventy-five percent said the collaboration increased sales, and 83% said that using Snap helped make the sale. Both sides win when customers can get the credit they need, according to the study.

Saunders said “Retailers who truly understand subprime consumers aren’t just filling a financing gap — they’re earning lifelong customers by offering opportunity and respect — when people feel heard and supported through transparent pay-over-time options, they come back. That’s the long game of customer retention.”

“Consumers’ financing experience reflects directly on the retailer,” Saunders added.

The bottom line is that flexible financing is no longer just a sales pitch. In reality, it’s a life raft to millions of Americans and a revenue stream to businesses that provide lease-to-own options and transparent pay-over-time solutions.