Snap Finance Survey Shows Growing Financial Gap Between Low‑Score and Prime Consumers
Survey design and demographic reach
Snap Finance commissioned an independent polling firm to conduct a national survey of 1,000 U.S. adults between March 15 and March 28, 2026. Participants were stratified to reflect the country’s age, income, and geographic distribution, then grouped by self‑reported credit score ranges. The primary comparison pits respondents with scores below 670 (often classified as “non‑prime”) against those with higher scores (generally “prime”).
The questionnaire probed three core areas:
- Financial stability – perceived ability to meet regular expenses and absorb shocks.
- Savings behavior – amount of liquid reserves and frequency of saving.
- Debt management – credit‑card usage, balance‑paying habits, and overall debt load.
By focusing on these pillars, the survey aligns with industry standards for measuring consumer credit health while providing granular data that retailers and fintech platform can translate into product design decisions.
A widening divide in paycheck‑to‑paycheck living
One of the most striking disparities emerges in the proportion of respondents who describe their finances as “living paycheck to paycheck.”
- 91 % of the sub‑670 cohort reported this condition, compared with 53 % of higher‑score respondents.
- This gap suggests that low‑score households are nearly twice as likely to lack a financial buffer, a condition that can amplify vulnerability to unexpected expenses such as medical bills or vehicle repairs.
The survey also asked participants to self‑rate their financial situation as stable, unstable, or very unstable. Among those with weaker credit:
- 58 % labeled their situation “unstable” or “very unstable,” while only 13 % of the prime group felt the same.
These figures echo long‑standing concerns among consumer‑finance analysts that credit score is a proxy for broader economic resilience, especially in an environment where inflationary pressures remain elevated.
Savings scarcity among the credit‑challenged
Savings depth is another area where the divide widens dramatically.
- 65 % of respondents with scores below 670 reported having $500 or less in liquid savings.
- Within that subgroup, 22 % disclosed they have no savings at all.
By contrast, the higher‑score cohort shows a markedly stronger savings cushion, though exact figures for that group were not disclosed in the release. The scarcity of emergency funds among low‑score consumers underscores the risk of default when faced with sudden financial shocks—a risk that risk‑adjusted credit lenders and retail partners must factor into underwriting models.
Delayed or forgone essential expenses
Beyond raw numbers, the survey captured behavioral shifts driven by financial strain. Respondents who identified as “financially pressured” indicated they were postponing or skipping essential services, including:
- Medical care
- Dental visits
- Car repairs
These trade‑offs reflect a coping mechanism that can erode long‑term health and mobility, further entrenching the financial divide.
Executive perspective: “A widening gap”
Ted Saunders, CEO of Snap Finance, emphasized the systemic nature of the findings.
“Our research underscores a widening gap between prime and non‑prime consumers in their ability to cover everyday expenses and handle unexpected costs,” said Saunders.
He added that retailers have a strategic opening to address the disparity:
“Retailers have a meaningful opportunity to drive growth by offering a broader mix of financing solutions that expand access to credit for the non‑prime customers who need it most.”
Saunders’ comments align with a broader industry trend toward embedded finance, where point‑of‑sale credit products are integrated directly into the shopping experience. By tailoring financing terms to the risk profile of lower‑score borrowers, retailers can capture a segment that traditionally remains under‑served.
Neobanks as primary banking relationships for the non‑prime
The survey also explored where consumers keep their primary banking relationships. It found that credit‑challenged respondents are more likely to rely on non‑traditional financial providers—commonly referred to as neobanks—than their prime counterparts.
Neobanks, which operate without a brick‑and‑mortar footprint and often leverage API‑driven platforms, have been positioning themselves as alternatives for underserved borrowers. Their digital‑first approach can lower onboarding friction, but the data suggests that many low‑score users still face barriers to mainstream banking services, reinforcing the need for inclusive product design.
Credit‑card debt behavior diverges sharply
Debt management patterns further differentiate the two groups. Among respondents who own a credit card:
- 50 % of those with sub‑670 scores never paid their balance in full over the past 12 months.
- Only 11 % of higher‑score cardholders exhibited the same behavior.
The inability or unwillingness to clear balances each month can compound interest costs, deepening the debt burden for non‑prime borrowers. For fintech lenders, this signals a higher risk profile that must be balanced against the potential for higher interest margins.
Top financial goals: Debt reduction leads the pack
When asked to prioritize personal financial objectives, reducing or eliminating credit‑card debt emerged as the most common top goal across all respondents, regardless of credit tier. Secondary goals included:
- Increasing income
- Saving for retirement
- Improving credit scores
These priorities highlight a universal desire to improve financial health, even among those who already face significant constraints.
Implications for retailers and fintech partners
The data points to a clear business case for expanded financing options at the point of sale. Retailers that integrate flexible, risk‑adjusted credit products can:
- Capture incremental sales from consumers who would otherwise defer purchases due to cash‑flow constraints.
- Build loyalty by offering a financial safety net that aligns with the consumer’s credit profile.
Fintech firms, especially those operating in the Buy‑Now‑Pay‑Later (BNPL) or installment‑loan space, can leverage these insights to refine underwriting algorithms. By incorporating variables such as emergency‑expense postponement and savings depth, lenders can better assess true repayment capacity beyond the traditional credit‑score metric.
Regulatory backdrop and responsible lending
The survey’s emphasis on “responsible credit” resonates with ongoing regulatory scrutiny from the Consumer Financial Protection Bureau (CFPB) and state‑level agencies. Recent guidance stresses the importance of transparent terms, affordability assessments, and fair‑lending practices—particularly for products targeting non‑prime borrowers.
Rob Brown, vice president of research and insights at Snap Finance, reiterated this stance:
“These findings highlight the financial challenges many households continue to face,” said Brown. “Access to responsible credit and financial tools can help consumers build resilience, particularly when unexpected expenses arise.”
Industry context: The push toward inclusive credit
The widening financial divide documented by Snap Finance is not an isolated phenomenon. Across the fintech ecosystem, there is a growing focus on credit‑inclusion initiatives—from alternative data underwriting to partnership models that embed credit into everyday commerce.
- Alternative data (e.g., utility payments, rental history) is increasingly used to augment traditional credit scores, potentially narrowing the gap for low‑score consumers.
- Open banking APIs enable lenders to securely access transaction data, facilitating more nuanced risk assessments.
However, the survey underscores that despite technological advances, a substantial portion of the population remains confined to precarious financial positions. The challenge for the industry lies in translating data‑driven insights into product designs that genuinely expand access without exacerbating debt risk.
Looking ahead: What the next “Credit Gap” report might reveal
Snap Finance plans to continue its “Credit Gap” series on an annual basis, with future releases expected to track the impact of evolving credit‑access solutions and regulatory changes. Stakeholders will be watching for shifts in the following metrics:
- Changes in the percentage of low‑score households living paycheck to paycheck.
- Evolution of savings buffers as alternative‑data‑driven products gain traction.
- Adoption rates of neobank accounts among non‑prime consumers.
Monitoring these trends will provide a barometer for the effectiveness of industry efforts aimed at narrowing the financial divide.
Bottom line
Snap Finance’s latest survey offers a data‑rich portrait of how credit quality shapes everyday financial behavior in the United States. The stark contrast in stability, savings, and debt management between sub‑670 and higher‑score consumers signals both a risk and an opportunity for retailers, fintechs, and neobanks. By aligning financing products with the nuanced needs of the non‑prime segment—while adhering to responsible‑lending standards—industry players can help close the gap and unlock a sizable, underserved market.
Get in touch with our fintech expert
