Does Snap Finance Check Credit? Unveiling the Truth & Alternatives

Understanding Snap Finance’s Credit Check Process

Snap Finance, a lease-to-own financing company, utilizes a credit check process to assess an applicant’s ability to repay the financed amount. This process is a critical step in determining eligibility and the terms of the financing agreement. It involves gathering and evaluating information to gauge the risk associated with lending to a specific individual.

General Procedure for Evaluating Eligibility

Snap Finance’s evaluation process typically involves several key stages, beginning with an application and culminating in a credit decision. The process is designed to be relatively quick and straightforward, allowing for a rapid determination of eligibility.

The steps generally include:

* Application Submission: The applicant completes an online or in-store application, providing personal and financial information.
* Information Verification: Snap Finance verifies the information provided by the applicant, which may include employment verification and bank account validation.
* Credit Check: A credit check is performed, accessing the applicant’s credit history from one or more credit bureaus.
* Risk Assessment: Snap Finance assesses the applicant’s creditworthiness based on the credit check results and other factors.
* Decision and Offer: A decision is made regarding the applicant’s eligibility. If approved, the applicant is offered financing terms, including the lease-to-own agreement details.

Information Requested from Applicants

Snap Finance requests various pieces of information from applicants to evaluate their eligibility for financing. This information is used to verify identity, assess creditworthiness, and determine the applicant’s ability to meet the payment obligations. Providing accurate and complete information is crucial for a successful application.

The typical information requested includes:

* Personal Information: This includes the applicant’s full name, date of birth, address, phone number, and email address.
* Identification: Proof of identification, such as a driver’s license or state-issued ID, is often required.
* Employment Information: Details about the applicant’s employment, including employer name, address, phone number, and employment history, are usually necessary. This helps verify income and stability.
* Income Information: Applicants are generally asked to provide information about their income, such as the source of income (employment, benefits, etc.) and the amount. Pay stubs or bank statements might be requested to verify income.
* Banking Information: Snap Finance may request bank account information for payment processing purposes. This includes the bank name, account number, and routing number.
* References: While not always required, applicants may be asked to provide references.

Credit Bureaus Utilized for Credit Checks

Snap Finance utilizes credit bureaus to access an applicant’s credit history. These bureaus maintain records of an individual’s credit activity, including payment history, outstanding debts, and credit utilization. The specific credit bureaus used can vary, but the primary ones are typically involved.

The credit bureaus that Snap Finance might utilize include:

* Experian: One of the three major credit bureaus, Experian provides credit reports that include information on an individual’s credit accounts, payment history, and public records.
* TransUnion: Another major credit bureau, TransUnion offers credit reports that contain similar information to Experian, including credit accounts, payment history, and public records.
* Equifax: The third major credit bureau, Equifax, provides credit reports that contain information about an individual’s credit accounts, payment history, and public records.

Types of Credit Checks Performed by Snap Finance

Snap Finance utilizes credit checks to assess an applicant’s creditworthiness. Understanding the type of credit check performed and how it differs from traditional lenders is crucial for consumers. This section will delve into the specific credit check methods employed by Snap Finance and the implications for applicants.

Credit Check Type: Hard Pull vs. Soft Pull

Snap Finance primarily uses a “hard pull” credit inquiry when evaluating applications. This means they request a full credit report from one or more of the major credit bureaus, such as Experian, Equifax, or TransUnion. A hard pull is a more in-depth review of an individual’s credit history.

The implications of a hard pull on an applicant’s credit score are important. A hard inquiry can temporarily lower a credit score, typically by a few points. The impact is usually minor and diminishes over time, often within a few months. However, multiple hard inquiries within a short period can have a more significant negative impact, particularly if they are for different types of credit. For example, applying for multiple credit cards or loans simultaneously can signal to lenders that the applicant may be in financial distress.

Credit Check Procedures: Snap Finance vs. Traditional Lenders

The credit check procedures of Snap Finance differ from those of traditional lenders in several key aspects. Traditional lenders, such as banks and credit unions, typically have stricter credit score requirements and more comprehensive reviews of an applicant’s credit history. They may also consider factors like income, employment history, and debt-to-income ratio.

Snap Finance, as a lease-to-own provider, often caters to individuals with less-than-perfect credit. While they still perform a hard credit check, their approval criteria may be less stringent than those of traditional lenders. Snap Finance may be more willing to approve applicants with lower credit scores or limited credit history. However, this often comes with higher interest rates and fees compared to traditional financing options.

Here’s a table summarizing the differences:

Feature	Snap Finance	Traditional Lenders
Credit Score Requirements	More flexible, may approve applicants with lower scores.	Stricter, requiring higher credit scores.
Credit Check Type	Hard Pull	Typically Hard Pull
Approval Factors	Focus on payment history, income verification, and sometimes, banking history.	Comprehensive credit history, income, employment, and debt-to-income ratio.
Interest Rates/Fees	Higher interest rates and fees.	Generally lower interest rates and fees.

Factors Influencing Application Approval

Several factors influence whether Snap Finance approves a customer’s application. While a credit score is a significant factor, other elements also play a role in their decision-making process.

• Credit Score: Although less critical than for traditional lenders, a higher credit score increases the chances of approval and may result in better terms. A credit score of 600 or above is generally considered a good starting point, but approvals can be granted to those with lower scores.
• Payment History: A positive payment history, demonstrating responsible handling of past credit obligations, is a crucial factor. This shows a history of timely payments on existing accounts.
• Income Verification: Snap Finance typically requires income verification to ensure the applicant can afford the lease payments. This can be through pay stubs, bank statements, or other forms of documentation.
• Banking History: Some providers may examine the applicant’s banking history to assess their financial stability and ability to manage their finances. This includes checking for overdrafts and consistent account activity.
• Debt-to-Income Ratio (DTI): While not always a primary consideration, a lower DTI suggests the applicant has more disposable income available to make lease payments.

These factors, taken together, help Snap Finance assess the applicant’s ability to repay the lease and determine the terms of the lease agreement.

Impact on Credit Score

Applying for financing, including through Snap Finance, can influence your credit score. Understanding these impacts is crucial for managing your credit health effectively. This section will explore how Snap Finance’s credit inquiries affect your score, how long those effects last, and how you can monitor your credit report.

Credit Inquiry Impact

When you apply for financing with Snap Finance, they perform a credit check. This inquiry, depending on its type, can impact your credit score.

A “hard inquiry” is triggered when a lender, like Snap Finance, checks your credit to assess your creditworthiness. This typically occurs when you apply for credit or financing. Hard inquiries can slightly lower your credit score, usually by a few points. The impact is generally more significant if you have several hard inquiries in a short period, as this can signal to lenders that you are actively seeking credit and potentially in financial distress.

Hard inquiries can temporarily decrease your credit score.

The extent of the decrease depends on your current credit profile. If you already have a strong credit history, the impact may be minimal. If your credit history is limited or you have existing credit issues, the impact might be more noticeable.

Duration of Credit Score Impact

The negative impact of a hard inquiry on your credit score is temporary. The effect typically lasts for up to two years, with the most significant impact occurring in the first few months. The score decrease from a hard inquiry usually diminishes over time.

The negative impact of a hard inquiry typically lasts for up to two years.

As time passes and you manage your credit responsibly (e.g., making on-time payments on existing accounts), the impact of the hard inquiry will fade. The inquiry will remain on your credit report for two years, but its influence on your credit score will lessen as time goes on.

Monitoring Your Credit Report, Does snap finance check credit

After applying for financing through Snap Finance, it’s essential to monitor your credit report to track any changes and ensure accuracy.

There are several steps you can take:

• Obtain Your Credit Reports: You are entitled to a free credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) annually. You can request these reports at AnnualCreditReport.com.
• Review Your Credit Report: Carefully examine your credit reports for any hard inquiries from Snap Finance or other lenders. Check for any errors or inaccuracies, such as incorrect account information or missed payments.
• Set Up Credit Monitoring: Consider using credit monitoring services. These services alert you to changes in your credit report, such as new inquiries, new accounts, or significant changes in your credit scores.
• Check for Fraud: Regularly review your credit report for any signs of fraud, such as accounts you didn’t open or transactions you didn’t make. If you suspect fraud, report it immediately to the credit bureaus and the lender.

By taking these steps, you can stay informed about your credit health and address any issues promptly.

Potential Credit Score Impacts Based on Credit Profiles

The following table illustrates potential credit score impacts based on different credit profiles. Note that these are estimations, and the actual impact may vary. This table uses a four-column structure, and each column is designed to adapt responsively to different screen sizes.

Credit Profile	Initial Credit Score	Potential Score Decrease from Hard Inquiry	Observations
Excellent	750+	0-5 points	Individuals with excellent credit typically experience minimal impact. The hard inquiry may not significantly affect their score.
Good	670-749	5-10 points	Those with good credit may see a moderate decrease. The impact is generally temporary and diminishes with responsible credit management.
Fair	580-669	10-15 points	Individuals with fair credit may experience a more noticeable decrease. It’s important to manage credit responsibly to mitigate the impact.
Poor	Below 580	15-20 points or more	Those with poor credit may see a more significant decrease. Additional hard inquiries may further lower the score. It’s crucial to focus on improving credit habits.

Alternatives to Snap Finance

For individuals who might not qualify for Snap Finance, or who are seeking potentially more favorable terms, several alternative financing options exist. Exploring these alternatives is crucial for making informed financial decisions and securing the necessary goods or services. These options cater to varying credit profiles and financial needs.

Alternative Financing Options

Understanding the various financing options available allows consumers to choose the best fit for their individual circumstances. The following options represent a range of alternatives to Snap Finance:

• Traditional Installment Loans: Offered by banks and credit unions, these loans often come with lower interest rates than Snap Finance, particularly for borrowers with good credit. The loan amount is repaid in fixed monthly installments over a set period. Eligibility depends on creditworthiness, income, and debt-to-income ratio.
• Credit Cards: Credit cards, especially those with introductory 0% APR offers, can be a viable alternative. However, using a credit card requires responsible spending habits to avoid accumulating high-interest debt once the introductory period ends. Credit limits and interest rates vary based on credit scores.
• Buy Now, Pay Later (BNPL) Services: Several BNPL services exist beyond Snap Finance. These services typically allow consumers to split purchases into installments, often with minimal credit checks. Some may charge interest or fees, so it’s crucial to compare terms.
• Personal Loans from Online Lenders: Online lenders offer personal loans with varying terms and interest rates. These lenders often cater to a broader range of credit profiles compared to traditional banks. Borrowers should carefully review loan terms and fees before applying.
• Rent-to-Own Agreements: Rent-to-own agreements allow consumers to acquire goods by making regular rental payments, with the option to purchase the item at the end of the rental period. These agreements often have high effective interest rates and may involve penalties for early termination.
• Store Credit Cards: Retailers offer store credit cards that can be used to finance purchases. These cards often have higher interest rates than general-purpose credit cards, but they may offer promotional financing periods.
• Layaway Plans: Layaway plans allow consumers to make payments over time to secure an item. The item is held by the retailer until the full payment is made. No interest is charged, but there may be fees.

Comparison of Terms and Conditions: Snap Finance vs. Buy Now, Pay Later Services

Comparing the terms and conditions of Snap Finance with other buy now, pay later (BNPL) services reveals key differences in interest rates, fees, and repayment structures. This comparison is essential for making an informed decision about the most suitable financing option.

Feature	Snap Finance	Other BNPL Services (e.g., Affirm, Klarna, Afterpay)
Interest Rates	High, often in the triple digits.	Can range from 0% to high, depending on the service, merchant, and consumer’s creditworthiness.
Fees	Late payment fees; possible origination fees.	Late payment fees; some may charge installment fees or transaction fees.
Credit Check	May perform a credit check, including a hard inquiry.	Varies. Some services perform soft credit checks; others may perform a hard inquiry.
Repayment Terms	Typically shorter repayment terms, often ranging from 12 to 18 months.	Shorter repayment terms, often ranging from a few weeks to a few months; some offer longer-term financing options.
Purchase Limits	Varies depending on creditworthiness and the merchant.	Varies depending on the service, merchant, and consumer’s spending history.
Impact on Credit Score	Can negatively impact credit score if payments are missed or late.	Can positively or negatively impact credit score, depending on payment behavior and the specific service’s reporting practices.

Does snap finance check credit – Example: A consumer needs to purchase a new refrigerator. Snap Finance might offer financing at a high APR, leading to significant interest charges over the repayment term. Alternatively, a BNPL service like Affirm might offer a lower APR, or even 0% APR if the purchase is made through a participating merchant, resulting in lower overall costs.

Many wonder if Snap Finance checks credit, and the answer is generally yes, they do. This is where understanding alternatives like fbn finance becomes crucial. While both offer financing options, the credit requirements and approval processes can vary, ultimately impacting your ability to secure the funding you need; therefore, knowing whether Snap Finance checks credit is vital.

Evaluating Financing Options

Evaluating different financing options requires a systematic approach to ensure the chosen option aligns with the consumer’s financial capabilities and goals. This involves a thorough assessment of interest rates, fees, and repayment terms.

• Interest Rates: Interest rates significantly impact the total cost of borrowing. Consumers should always compare the Annual Percentage Rate (APR) across different financing options. A lower APR translates to lower overall interest charges.
• Fees: Identify all associated fees, including late payment fees, origination fees, and any other charges. These fees can significantly increase the overall cost of the financing.
• Repayment Terms: Consider the length of the repayment term. While longer terms may result in lower monthly payments, they also lead to paying more interest over time. Shorter terms reduce interest costs but require higher monthly payments.
• Total Cost: Calculate the total cost of the financing, including the principal amount, interest, and all fees. This provides a clear picture of the overall financial commitment.
• Credit Score Impact: Understand how each financing option affects the credit score. Timely payments build credit, while missed payments can damage it.
• Budget Assessment: Assess the monthly payments and ensure they fit within the budget. Overextending finances can lead to financial strain.

Example: A consumer is considering a $1,000 purchase. Snap Finance offers financing at a 150% APR over 12 months, while a credit card offers a 20% APR. Even though the credit card has a higher monthly payment, the total interest paid with Snap Finance will be considerably higher, making the credit card a more cost-effective option if the consumer can manage the monthly payments.

While many wonder if Snap Finance scrutinizes credit, the efficiency of financial operations is crucial. Streamlining these processes is where Robotic Process Automation (RPA) shines, allowing for automated tasks, improving accuracy, and optimizing workflows. This is precisely what rpa for finance and accounting can achieve. Ultimately, understanding credit checks and leveraging technology are key aspects of modern financial services, and this includes how Snap Finance operates.

Improving Creditworthiness for Future Applications: Does Snap Finance Check Credit

Applying for financing, whether it’s with Snap Finance or another lender, is significantly easier and often more beneficial when you have a strong credit profile. Improving your creditworthiness is an ongoing process that requires consistent effort and responsible financial habits. This section Artikels key strategies you can implement to bolster your credit score and increase your chances of approval for future financing.

Methods for Improving Credit Scores

Boosting your credit score takes time, but it’s achievable with diligent effort. Focus on building a positive credit history by implementing the following strategies:

• Review Your Credit Report Regularly: Obtain a free copy of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) annually at AnnualCreditReport.com. Scrutinize the reports for any errors, such as incorrect payment statuses, accounts you don’t recognize, or inaccurate personal information.
• Pay Bills on Time, Every Time: Payment history is the most significant factor in your credit score. Make all your payments – rent, utilities, credit cards, loans – on or before the due date. Set up automatic payments or reminders to avoid missing deadlines.
• Manage Credit Card Balances: Keep your credit utilization ratio (the amount of credit you’re using compared to your total available credit) low. Ideally, aim to use no more than 30% of your available credit on each card. For example, if you have a credit card with a $1,000 limit, try to keep your balance below $300.
• Avoid Opening Too Many New Accounts at Once: Applying for multiple credit accounts in a short period can negatively impact your score, as it can signal financial instability to lenders. Space out your applications and only open new accounts when you genuinely need them.
• Become an Authorized User: If a trusted family member or friend has a credit card with a good payment history and low credit utilization, ask to be added as an authorized user. Their positive credit behavior could positively influence your score.
• Maintain a Mix of Credit: Having a mix of credit accounts, such as credit cards, installment loans (like a car loan), and a mortgage, can demonstrate responsible credit management. However, don’t open accounts solely to diversify your credit mix; only take on credit you need and can manage responsibly.

Importance of Timely Payments and Responsible Credit Management

Your payment history and how you manage your credit are the cornerstones of your credit score. These factors heavily influence a lender’s perception of your creditworthiness.

• Payment History’s Impact: Late or missed payments are detrimental. Even one missed payment can significantly lower your score, and the impact can last for years. Consistent on-time payments are crucial for building and maintaining a good credit score.
• Responsible Credit Use: Beyond timely payments, responsible credit use involves managing your credit utilization and avoiding excessive debt. High credit utilization indicates a higher risk of default, which can negatively impact your score.
• Credit Limits and Spending Habits: Be mindful of your spending habits and stay within your credit limits. Maxing out your credit cards can severely damage your credit score.
• Building Good Habits: Establish good credit habits early on, such as paying bills on time and monitoring your credit report regularly. These habits will serve you well throughout your financial life.

Strategies to Dispute Inaccuracies Found on a Credit Report

Credit report errors can significantly damage your credit score, leading to loan denials or higher interest rates. It’s essential to regularly review your credit reports and dispute any inaccuracies.

• Identify the Errors: Carefully review your credit reports from all three credit bureaus and identify any discrepancies, such as incorrect account information, inaccurate balances, or accounts that don’t belong to you.
• Gather Documentation: Collect supporting documentation to back up your dispute. This might include copies of bills, payment records, statements, or any other relevant information.
• File a Dispute with the Credit Bureau: Contact the credit bureau (Experian, Equifax, or TransUnion) that issued the report containing the error. You can typically dispute online, by mail, or by phone. Provide the necessary information, including the specific error and supporting documentation.
• File a Dispute with the Creditor: You can also dispute the error directly with the creditor or lender that reported the information. Provide them with the same documentation you submitted to the credit bureau.
• Follow Up and Monitor: The credit bureaus are required to investigate your dispute and respond within a specific timeframe (usually 30-45 days). Monitor your credit report after the investigation to ensure the error has been corrected. If the error isn’t corrected, you can escalate the dispute.
• Keep Records: Maintain records of all correspondence and documentation related to the dispute. This will be helpful if you need to escalate the issue or provide proof of your efforts.

Application Process and Eligibility Criteria

Understanding the application process and eligibility criteria for Snap Finance is crucial for potential applicants. This section provides a comprehensive overview of the requirements and steps involved, helping individuals determine their suitability and navigate the application process effectively.

Basic Eligibility Requirements

Snap Finance sets forth certain eligibility requirements that applicants must meet to qualify for financing. These requirements ensure that applicants possess the basic financial stability necessary to manage the repayment obligations.

The core eligibility requirements typically include:

• Age Requirement: Applicants must be at least 18 years old. This is a standard requirement across most financial institutions to ensure legal capacity to enter into a contract.
• Income Verification: Applicants generally need to demonstrate a consistent source of income. This may involve providing proof of employment, pay stubs, or bank statements. The minimum income threshold can vary.
• Checking Account: A valid and active checking account is usually required. This is essential for processing payments and direct deposits.
• Identification: Applicants need to provide valid government-issued identification, such as a driver’s license or state ID, to verify their identity.
• Residency: Applicants must reside in the United States.

These requirements are subject to change and can vary based on the specific financing product and the retailer offering Snap Finance. Applicants are advised to confirm the current eligibility criteria directly with Snap Finance or the participating retailer.

Typical Application Process Steps

The Snap Finance application process is designed to be straightforward and efficient, allowing applicants to quickly determine their eligibility and obtain financing. The process typically involves several key steps.

The steps involved in the application process are:

1. Application Submission: The application process usually begins either online through Snap Finance’s website or in-store at a participating retailer. Applicants will be required to provide personal information, including contact details, income information, and banking details.
2. Credit Check: As previously discussed, Snap Finance will perform a credit check, which may be a “soft” or “hard” inquiry. The purpose is to assess the applicant’s creditworthiness.
3. Approval Decision: Based on the information provided and the credit check results, Snap Finance will make an approval decision. Applicants will be notified of their approval status and the approved financing amount.
4. Financing Agreement: If approved, applicants will be presented with a financing agreement outlining the terms and conditions, including the repayment schedule and interest rates. Applicants must carefully review the agreement before signing.
5. Purchase and Payment: Once the agreement is signed, the applicant can proceed with their purchase. Snap Finance will then make payments to the retailer, and the applicant is responsible for making timely payments according to the agreed-upon schedule.

The entire process is usually completed quickly, often within minutes, making it a convenient option for immediate financing needs.

Items and Services Typically Financed

Snap Finance specializes in financing a variety of goods and services, primarily focusing on items that are often essential or desirable but may not be easily affordable upfront. The range of items and services financed by Snap Finance is quite broad.

Snap Finance typically finances:

• Furniture: Couches, beds, dining sets, and other furniture items are commonly financed. This allows consumers to furnish their homes without having to pay the full cost immediately.
• Appliances: Refrigerators, washing machines, dryers, and other household appliances are often financed through Snap Finance. This is especially helpful when a critical appliance breaks down unexpectedly.
• Tires and Auto Repair: Snap Finance is often used for financing tire purchases and automotive repairs.
• Electronics: Televisions, computers, smartphones, and other electronics are frequently financed. This allows consumers to upgrade their technology without a large upfront payment.
• Medical Procedures: Snap Finance may be used for certain medical procedures, especially those considered elective.
• Dental Work: Dental work, including cosmetic procedures and necessary treatments, can sometimes be financed through Snap Finance.
• Home Improvement: Some retailers offer Snap Finance for home improvement projects, such as new windows or flooring.
• Other Retail Purchases: Depending on the retailer, Snap Finance may be available for other types of retail purchases, such as jewelry or musical instruments.

The specific items and services eligible for financing vary based on the retailer’s partnership with Snap Finance. The availability and terms can also change over time, so it is important to check with the retailer or Snap Finance directly for the most up-to-date information.

Credit Score Requirements and Ranges

Understanding the credit score requirements and ranges employed by Snap Finance is crucial for potential applicants. This information provides insight into the likelihood of approval and helps individuals assess their eligibility before applying. Credit scores are a key component of Snap Finance’s application assessment process, influencing both approval decisions and the terms offered.

Credit Score Ranges for Approval

Snap Finance doesn’t explicitly publish a minimum credit score requirement. However, the credit score range generally considered for approval is often stated to be around 500 to 700. It’s important to remember that this is a broad estimate, and approval can depend on other factors, too. A higher credit score typically increases the chances of approval and may lead to more favorable terms, such as a lower interest rate. Conversely, a lower credit score might result in denial or less attractive financing options.

Snap Finance uses a proprietary scoring model, so the exact credit score needed can vary. The credit score is one of many factors considered during the application review process.

Role of Credit Scores in Application Assessment

Credit scores play a significant role in the overall assessment of a Snap Finance application. They provide a snapshot of an applicant’s creditworthiness, indicating their past financial behavior and the likelihood of repaying a loan. The higher the credit score, the better the perceived risk of lending to that individual. Snap Finance uses this information to determine whether to approve an application, and if approved, to set the terms of the financing agreement. These terms can include the interest rate, the down payment required, and the overall repayment schedule.

The credit score helps the lender assess the risk associated with extending credit. Other factors are also considered, but the credit score is a foundational piece of the evaluation process.

Potential Outcomes Based on Credit Score Tiers

The outcome of a Snap Finance application often correlates with the applicant’s credit score tier. The following blockquote illustrates the potential scenarios:

Credit Score Range: 680-720+ (Excellent to Very Good)

• Likelihood of Approval: Very High.
• Terms Offered: Favorable terms, including the potential for a lower interest rate and a smaller down payment.
• Example: An applicant with a credit score of 700 applies for a $1,500 purchase. They may be approved with a low interest rate and a manageable repayment plan.

Credit Score Range: 620-679 (Good)

• Likelihood of Approval: High.
• Terms Offered: Standard terms, with a moderate interest rate and down payment.
• Example: An applicant with a credit score of 650 may be approved for a $1,000 purchase, but the interest rate might be slightly higher than for someone with a higher score.

Credit Score Range: 580-619 (Fair)

• Likelihood of Approval: Moderate.
• Terms Offered: Higher interest rates, larger down payments, and potentially shorter repayment terms.
• Example: An applicant with a credit score of 600 could be approved for a $500 purchase, but the financing agreement might include a higher interest rate and a larger initial payment.

Credit Score Range: Below 580 (Poor)

• Likelihood of Approval: Low.
• Terms Offered: If approved, very high interest rates and a large down payment are probable. Denial is also likely.
• Example: An applicant with a credit score of 550 may be denied, or approved with extremely unfavorable terms. They might be required to make a significant down payment and face a high interest rate.