When money is tight but you need household items or furniture now, rent-to-own services like Snap Finance and Progressive Leasing allow you to take home products immediately with affordable payment plans.
But how do these two popular options compare when it comes to costs, fees, and overall value for consumers?
This comprehensive guide examines the pros, cons, fine print, and key differences between Snap Finance and Progressive Leasing to help you determine which provider may be better for your rent-to-own needs.
A Brief Comparison Table
| Category | Snap Finance | Progressive Leasing |
| Payment Options | Weekly, bi-weekly, monthly | Monthly |
| Payments Until Ownership | Total lease term | Total term plus one “ownership” payment |
| Early Purchase Allowed | After 50% of payments | After 50% of payments |
| Upgrade Allowed | Anytime after 50% of payments, no fee | After 50% of payments, 15% upgrade fee |
| Return Policy | Returns allowed if payments current | Returns allowed if payments current |
| Late Fees | $5 or 5% of payment | 5% of total monthly payment |
| Total Cost Example | $1140 to $2002 for $1000 item | $1164 for $1000 item |
| Pros | Flexible payment frequency, lower fees, purchase protection plans | Lower total cost, transparent terms |
| Cons | Slightly higher total cost, bankruptcy in 2021 | Extra “ownership” payment, upgrade fees |
Overview of Snap Finance
Snap Finance provides lease-to-own financing for purchases at participating retailers like Best Buy, Lowe’s, Kay Jewelers, and Walmart. With Snap Finance, you pick out the product you want and apply through Snap’s website or mobile app for instant financing approval.
Here is an overview of how Snap Finance works:
- Instant financing decisions and ability to take home items same-day
- No credit check required
- Payments are made weekly, bi-weekly or monthly to Snap Finance
- You own the item after all payments are made
- Can upgrade to a new item after 50% of payments on current lease are made
- Items can be returned without penalty if payments are up to date
- Offers purchase protection on items up to $3000 in value
Snap Finance is available in over 20,000 retail partner locations across the U.S. The company emerged from bankruptcy in 2021 under new ownership.
Overview of Progressive Leasing
Progressive Leasing also offers instant approval for leases on electronics, furniture, appliances, jewelry, tires, and more at participating locations. With Progressive, you select an item, apply for financing, and upon approval can take the product home.
Here are some key things to know about Progressive Leasing:
- Available at over 20,000 retail locations
- No credit check required
- Payments are made monthly
- You take ownership after all payments are made
- Option to early purchase or upgrade items
- Can return items without penalty if payments are current
- Protection plans available for purchase
Both Snap Finance and Progressive Leasing provide bi-weekly or monthly rent-to-own payment options at major retailers across the U.S. But there are some key differences between these two options.
Key Differences Between Snap Finance And Progressive Leasing
Understanding the fine print and potential fees are musts when using rent-to-own financing. Here is how Snap Finance and Progressive Leasing compare:
Payments Required Before Ownership
- With Snap Finance, you begin building equity immediately. Ownership happens after the full payment term is met.
- Progressive Leasing requires you complete all payments plus an additional final one considered the “ownership” payment.
Early Purchase Options
- Snap Finance allows upgrade after 50% of total payments are made on current lease.
- Progressive lets you purchase the item after you make 50% of the total payments.
Return Policies
- Both allow returns with no penalties as long as your payment schedule is current.
- The item must be returned in good condition with all parts, manuals, packaging, etc.
Late Fees
- Snap Finance charges late fees of either $5 or 5% of the late payment amount.
- Progressive Leasing late fees equal 5% of the total monthly payment owed.
Upgrade Fees
- No fees to upgrade your leased item after 50% of payments with Snap.
- Progressive charges an upgrade fee of 15% of the total cost of the item.
Damage Waivers
- Snap offers optional purchase protection plans to cover damage and defects.
- Progressive provides optional lease plans that include damage coverage.
Collection Practices
- Both companies may use debt collectors or report delinquent customers to credit bureaus which could affect your credit score.
So when comparing the fine print, Snap Finance comes out ahead for having no final “ownership” payment, lower late fees, and no upgrade charges. But terms are similar across both companies.
Also Read: Comparison Between Acima And Progressive Leasing.
Cost Comparison
Affordability is likely a top priority if you are considering a rent-to-own option. The total cost with Snap Finance and Progressive Leasing can vary quite a bit. Let’s compare costs for a $1000 furniture purchase:
Snap Finance
- Weekly payments: $22 over 91 weeks = $2002 total
- Bi-weekly payments: $44 over 46 weeks = $2024 total
- Monthly payments: $95 over 12 months = $1140 total
Progressive Leasing
- Monthly payments: $194 over 6 months = $1164 total
For a $1000 purchase, Progressive Leasing would cost $1164 compared to a range of $1140 to $2002 with Snap Finance, depending on payment frequency selected.
The total spent increases the longer the payment terms. But Progressive appears to be the more affordable option based on these sample costs.
Also Read: Comparison Between Triad Financial And 21st Mortgage
Pros and Cons of Each Company
To help summarize the differences, here are the major pros and cons of both Snap Finance and Progressive Leasing:
Snap Finance Pros
- Build equity immediately, no final “ownership” payment
- Lower late fees and no upgrade fees
- Purchase protection plans available
- Can return at any time if payments are current
Snap Finance Cons
- Slightly higher total cost in examples
- Weekly payments can increase total spending amount
- Recently emerged from bankruptcy in 2021
Progressive Leasing Pros
- Lower total cost in sample payments
- Monthly payment options only
- Purchase, upgrade, or return policies similar to Snap
- Available at over 20,000 major retail locations
Progressive Leasing Cons
- Must make full payments plus one “ownership” payment
- Charges a 15% upgrade fee
- Has faced lawsuits regarding fees and disclosures
For middle-income consumers, Progressive Leasing appears to be the more affordable and transparent option. But for maximum flexibility, Snap Finance offers more payment schedule choices.
Watch this review video:
Which Rent-To-Own Company Is Better?
Determining whether Snap Finance or Progressive Leasing is the better choice for your rent-to-own financing needs depends on your specific situation:
- If you want lower total spending, Progressive Leasing offers more affordable monthly payment options.
- If you prefer more flexibility on payment frequency, Snap Finance allows weekly or bi-weekly payments.
- If you plan to upgrade frequently, Snap Finance has no upgrade fees.
- For the most transparency and fee disclosure, Progressive Leasing may have an edge.
- For maximum purchase protection, Snap Finance provides more optional coverage.
Ideally, compare quotes from both companies for the item(s) you plan to lease. Crunch the numbers to see which offers you the lowest total cost. Also consider your preferred payment frequency. For the best experience, carefully read all policies, disclosures, and contracts before signing a lease.
Also Read: Comparison Between SoFi And Happy Money
Frequently Asked Questions (FAQs)
The main alternative to Snap Finance is Progressive Leasing. Both offer rent-to-own financing for major purchases at retailers across the U.S. Other alternatives include credit cards, personal loans, or saving up to buy items outright without financing.
Snap Finance provides a legitimate rent-to-own financing option, but has faced some criticism regarding fees and disclosures. They offer easy instant financing approval and flexible payment options. However, total spending can be higher compared to competitors like Progressive Leasing. Consumers should read the fine print carefully before entering a lease.
No, Progressive Leasing is not a credit account. It is a form of rent-to-own financing that allows you to lease items with no credit check. Payments must be made each month to eventually own the item. Progressive Leasing does report payment activity to credit bureaus which can affect your credit score.
The main rules of Progressive Leasing are that you must make all required monthly payments in full and on time. After the final “ownership” payment, you keep the item. You can return the item at any point if payments are current. Late or missed payments can result in fees and hurt your credit. Read all terms and disclosures carefully before starting a lease.
The Bottom Line
When used responsibly, Snap Finance and Progressive Leasing allow you to get needed items now through affordable payment plans. Make sure to compare all costs and fees closely. Understand the payment schedules and ownership terms before committing. For the best deal, get quotes from both providers on any items you plan to lease. Find the right rent-to-own company for your needs by weighing the pros, cons, and fine print.