Short Answer: Snap Finance does not report to the major credit bureaus. Its approval and collections processes are handled entirely in-house. Only in situations where Snap Finance has to write off debt does it pass customer information on to third parties, or debt collectors. For more on Snap Finance’s reporting policy, see below.
Does Snap Finance Report to Credit Bureaus?
Snap Finance does not report to credit bureaus because it does not provide direct loans to consumers. Instead, the company works under a lease-purchase arrangement with a number of stores and retailers.
How Does Snap Finance Work?
When you apply for Snap Finance, you’ll provide basic information like your name, address, Social Security number or Individual Taxpayer Identification Number (ITIN), employment details, and two references. You can be approved for a purchase amount up to $3,000. But you won’t receive the funds directly; you’ll receive a prepaid Discover card or you’ll be able to access a virtual Snap Finance card via your smartphone. And, you’ll only be allowed to lease-purchase good from Snap Finance-approved stores. There are no fees until you make a purchase — except for the initial processing fee of $59 or less. Repayment terms are up to 12 months.
What If You Miss a Payment?
If you miss a payment, Snap Finance will not report it to the major credit bureaus, a customer service representative said. Borrowers who struggle to make payments may be placed on a hardship program with different terms. Further missed payments can lead to Snap Finance’s in-house collections department to become involved. Worst case scenario, Snap Finance will write off the amount owed and pass your information on to a third-party collections agency. But its policy is to not report failure to pay to any of the major credit bureaus. This information was gathered from a Snap Finance customer service representative reached at (877) 557-3769.
Can You Self-Report?
If you pay off a lease-purchase agreement early and want to have it positively noted on your credit file, you can self-report to the credit bureaus. And, Snap Finance will help provide the necessary paperwork to do so, a representative said.