In today’s world of instant gratification and buy now, pay later financing, companies like Snap Finance and Acima give consumers more options to purchase big-ticket items on payment plans. But how do you know which provider to choose when you need flexible financing?
Both Snap Finance and Acima offer point-of-sale payment plans that allow you to take home products immediately and make payments over time.
However, there are some key differences between these two flexible financing providers that you should understand before making a decision.
A Brief Comparison Table
| Category | Snap Finance | Acima |
| Credit Check | Soft credit check | Soft credit check |
| Minimum Credit Score | Poor/fair credit ok | Requires fair/average credit |
| Maximum Approval Amount | Up to $15,000 | Up to $7,500 |
| Payment Terms | 6-60 months | 3, 6, 10 or 12 months |
| Monthly Payment Amounts | Varies based on total, term length | Fixed payments |
| Fees | No origination fee or prepayment penalties | Account activation fee and late fees |
| Retailer Availability | Thousands of retailers including furniture, appliance, jewelry, specialty stores | Major national retailers |
| Apply and Approval Time | Instant approval decisions at point of sale | Super fast 1-2 minute approvals |
| Early Repayment Options | No prepayment penalties | Early payoff discount available |
| Account Management | Online account access | Free online account access |
Overview Of Snap Finance
Snap Finance partners with retailers to provide customized financing options at the point of sale. With Snap Finance, you can finance purchases from $250 up to $15,000 with repayment terms ranging from 6 to 60 months.
Here are some key things to know about Snap Finance:
- Instant credit decisions – Get approved and take home your items right away
- Multiple repayment options – Choose bi-weekly, semi-monthly, or monthly payments
- No prepayment penalties – Pay off your balance early with no extra fees
- Online account management – Manage your account fully online after purchase
- Available at thousands of retailers – Find Snap Finance at furniture, appliance, jewelry, and specialty stores
Snap Finance approves applicants with a wide range of credit scores, making it accessible for most budgets. The company focuses on your ability to pay back the loan rather than relying solely on your credit history.
Overview Of Acima
Formerly known as Simple Finance, Acima is another point-of-sale financing provider partnered with major retailers. With Acima, you can finance essential purchases from $500 up to $7,500 with repayment terms of 3, 6, 10, or 12 months.
Here are some notable features of Acima financing:
- Fast approvals in 1-2 minutes – Know almost instantly if you’re approved
- Fixed monthly payments – Pay the same amount each month for predictability
- No money down – 100% financing with nothing due upfront
- Early payoff discount – Get a discount for paying off early
- Free online account access – Manage payments and account details 24/7
One of the biggest advantages of Acima is that it considers more than just your credit score for approvals. The company evaluates your entire financial profile including income, rent payments, utilities, and more.
Key Differences Between Providers
Now that you know the basics of Snap Finance and Acima, let’s compare some of the biggest differences between the two point-of-sale financing providers:
Approval Amounts
- Snap Finance approves financing from $250 up to $15,000
- Acima approves financing from $500 up to $7,500
Credit Score Requirements
- Snap Finance is more flexible on credit scores, approving applicants with poor/fair credit
- Acima tends to require a fair or average credit score for approval
Payment Terms
- Snap Finance offers repayment terms from 6 to 60 months
- Acima offers shorter 3, 6, 10, or 12 month terms
Early Repayment
- Snap Finance has no prepayment penalties so you can pay off early with no fees
- Acima offers a discount for early repayment
Fees
- Snap Finance has no origination fees or prepayment penalties
- Acima charges account activation fees and late fees
As you can see, Snap Finance specializes in higher approval amounts and longer repayment terms while Acima focuses on smaller purchases paid off quicker.
Also Read: Comparison Between Acima And Progressive Leasing.
Pros And Cons Of Snap Finance
Pros
- Higher credit limits up to $15,000
- Long repayment terms from 6 to 60 months
- No prepayment penalties
- No origination or account fees
- Available at major national retailers
Cons
- Website and account management could be more user-friendly
- Lower average credit score requirements compared to competitors
- Not available in IA, ME, MN, MS, NC, PA, VT, WV
Pros And Cons Of Acima
Pros
- Super fast application and approval process
- Fixed monthly payments for predictability
- Pay off discount for early repayment
- Free online account management
- Wide national availability
Cons
- Lower maximum approval amount of $7,500
- Shorter 3-12 month repayment terms
- Account activation and late fees
- Requires fair/average credit for approval
Also Read: Comparison Between Ameriprise Financial And Edward Jones.
Which Option Is Better For You?
Deciding between Snap Finance Vs. Acima depends largely on your specific purchase and budget situation. Keep the following in mind when choosing:
For high-ticket items and longer financing: Snap Finance is ideal for more expensive purchases like furniture or appliances when you need over 12 months to repay. The higher credit limits and longer terms make Snap Finance suitable for bigger projects.
For essential purchases and quicker repayment: Acima is better for urgent or essential purchases like tires, mattresses, or auto repairs. The fast approvals and shorter 3-12 month terms allow you to pay off smaller items quickly.
For fair/average credit applicants: Acima is the better choice if you have an established fair or average credit history since approval is more likely. Snap Finance approvals are based less on your credit score.
For those with poor/limited credit: Snap Finance is a better option if you have poor or limited credit since they offer more flexibility with their approval process. Acima requires more established credit.
No matter which option you choose, always make sure to compare all financing terms and repayment amounts before applying. Consider utilizing a personal loan from your bank or credit union as well.
Also Read: Comparison Between Edward Jones And Competitors.
Frequently Asked Questions (FAQ)
A: The top competitors of Acima include Snap Finance, Affirm, Klarna, Afterpay, and Zip. These are all point-of-sale financing companies.
A: The maximum approval amount from Acima is currently $7,500 across a 3, 6, 10 or 12 month term. For purchases above $7,500, you may need to consider a lender like Snap Finance.
A: If Snap Finance does not work for your budget, some alternatives are Affirm, PayPal Credit, Klarna, QuadPay, or applying for a personal installment loan from your bank/credit union.
A: No, Snap Finance considers multiple factors beyond just your credit score for approval. They offer flexibility for those with bad credit but also serve applicants with average and above-average credit.
Here is a video about Acima!
The Bottom Line
When it comes to Snap Finance Vs. Acima for financing retail purchases on payment plans, weigh the pros and cons carefully for your specific situation. Be sure to compare approval amounts, repayment terms, fees, credit requirements, and retailer availability.
With some savvy comparison shopping, you can find the right point-of-sale financing option to help you pay over time for the products you need.