New Study Reveals Deepening Financial Divide Between Americans With High and Low Credit Scores

Survey finds 91% of credit-challenged consumers live paycheck to paycheck and most have $500 or less in savings

A new national survey from Snap Finance, a leading fintech platform that drives retailer growth by expanding consumer access to financing, today released findings showing a widening financial divide between Americans with lower credit scores and those with stronger credit profiles, highlighting differences in financial stability, savings, and debt management.

“Our research underscores a widening gap between prime and non-prime consumers in their ability to cover everyday expenses and handle unexpected costs,” said Ted Saunders, CEO at Snap Finance.

The study, part of Snap Finance’s ongoing “Credit Gap” research series, surveyed 1,000 U.S. adults to better understand how financial pressures and behaviors vary across credit tiers. The findings show that consumers with credit scores below 670 are significantly more likely to experience financial instability and limited savings than those with higher credit scores.

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Among the key findings for consumers with credit scores below 670:

• 91% report living paycheck to paycheck, compared with 53% of those with stronger credit scores.
• 58% describe their financial situation as unstable or very unstable, compared with 13% of consumers with higher credit scores.
• 65% report having $500 or less in savings, including 22% with no savings.

The research also found that households under financial pressure are delaying or forgoing essential expenses. Respondents reported postponing expenses such as medical care, dental visits, and car repairs due to financial strain.

“Our research underscores a widening gap between prime and non-prime consumers in their ability to cover everyday expenses and handle unexpected costs,” said Ted Saunders, CEO at Snap Finance. “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.”

The survey also highlights differences in financial tools and services used by consumers. Credit-challenged consumers are more likely to rely on nontraditional financial providers, also known as neobanks, as their primary banking relationship than consumers with stronger credit histories.

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Debt management patterns also varied significantly. Among respondents with credit cards, 50% of credit-challenged cardholders never paid their balance in full over the past 12 months, compared with 11% of consumers with higher credit scores.

“These findings highlight the financial challenges many households continue to face,” said Rob Brown, vice president of research and insights at Snap Finance. “Access to responsible credit and financial tools can help consumers build resilience, particularly when unexpected expenses arise.”

Across all respondents, reducing or eliminating credit card debt ranked as the most selected top financial goal, followed by increasing income, saving for retirement, and improving credit scores.

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