PERSONAL FINANCE BLOG

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Snap Finance
9 Jul 2019

Snap Finance: Purchase Now, Pay Later

There are many instances in life where you’ll see an item you really want or need and won’t quite have enough money to buy it outright. If you’re willing to pay a little extra for the privilege, Snap Finance offers loans that can help you make that purchase anyway. They’re a little different from standard loans, though, so be sure to read this product review before you make any plans about getting one for yourself.

What Borrowing Gets You

Borrowing from Snap Finance is nothing like borrowing from almost any other lender. Usually, you take out a loan with the intention of getting access to a sum of money, which you can then use to purchase anything you want. You’ll be given the chance to purchase something (or multiple things in one transaction, if you prefer) worth as much as $3,000 in total, although your purchase ceiling may be lower if your income isn’t particularly high. You will then be asked to spend your available funds and actually initiate your loan. Ultimately, you will only owe as much as you choose to spend on your single purchase occasion (more to come on that later on), so you can effectively determine your loan amount yourself. Your loan also does not actually come into effect until you buy something, so you’re free to take this lender up on their offer and keep that opportunity in reserve until a later date (although there’s really no reason why you would want to do that). Your loan will generally come due about 12 months after that, although again, you should definitely review the specifics of your own loan offer before you go making any assumptions about what is required of you.

The interest rates on these loans vary depending on each case, so we can’t say much about how much it will cost you; the best way to find out is to get a quote from the company itself. In general, though, you can expect to pay rates that are comparable to what you would pay on standard bad credit loans, perhaps with a slight discount to compensate for the fact that you can only use these loans in very particular ways. You shouldn’t expect your total costs to be much different for having chosen these loans instead of ones with a more typical structure; this setup is more useful for the convenience that it allows you. You may also be responsible for some amount of processing fees as part of your loan, but these will be small and will be disclosed to you as part of your loan agreement when the time is right.

A Special Way To Use These Loans

You can do everything you need to get the loans themselves all online, but in order to actually spend the money, you’ll need to visit an actual store and make your purchase in person. When you do that, you will be asked to scan the virtual card that you will be given by pulling it up on the screen of your mobile phone. The cashier will then scan that card and it will be used as payment for your purchase. At that point, you will officially owe that money to Snap Finance and will be expected to start paying it back. You will own the items you bought and will be free to use them while you pay off the loan, but you will obviously still owe the money for them if they become broken or damaged in that time frame. This arrangement is why you need to shop exclusively at certain retailers in order to use these loans; not every establishment has the infrastructure in place that is needed to accept this form of payment. If there’s something you really want to buy that you can only get from a store that is not part of Snap Finance’s program, you will have to take out a standard loan to do that. Unless it’s something very special that absolutely must be exactly as you want it, though (like an engagement or promise ring), you can probably find something similar at a Snap-approved store that will still allow you to take advantage of these loans.

Why Would You Do It?

This type of loan arrangement is uncommon, so it might be hard to imagine why someone would want to choose it at first. Why take on the responsibility of a loan only to limit yourself in that way? The reason most people choose solutions like this is due to issues with cash flow in their budget. When someone has little income to spare each month but needs to make a big purchase, they can’t buy that thing in cash as they might otherwise have done. They also might not want to take out a loan that is larger than what they really need and that might come with fees and conditions they would struggle to adapt to. The easiest thing for them in this case is to find a lender that is set up precisely to help with purchases like this. Snap Finance allows you to buy the items you’re looking for now and worry about the costs later, paying in smaller increments as you go. If you only have a few hundred dollars each month to put toward your purchase, that might be enough to make the transaction happen. Doing things this way makes that shopping much more accessible to people with lower incomes and allows them to live with less deprivation and fewer delays than they might otherwise experience. In that way, Snap Finance’s services help to equalize purchasing power among the upper and lower classes.

Will Snap Finance Be Of Use To You?

Because they are structured so differently from standard loans, Snap Finance loans are not for the average would-be borrower. Most people will be looking for a solution that’s a bit more flexible than what they’ll get here. However, if your intention is to go shopping with your money anyway and you know you can find what you’re looking for at one of Snap’s partner retailers, there’s no harm in investigating what kind of deal you can get from them. It may be better or worse than what you’d be offered from another lender, but it’s likely to be one of the easiest ways for you to carry out your transaction regardless.

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Pay For Purchases in a Snap With Snap Finance