By: Peyton Brown
APR and Interest Rates
The total amount a consumer pays to lease an item is typically much higher than if the consumer bought the item. The average APR is 100% or higher and the interest rate depends on the place where the item is rented.
Examples of Rent-To-Own Places in the Community
Some of the places that provide this credit would be Aaron’s and Rent-A-Center.
Who Would Use this Credit?
Most of the customers who come to these businesses are put in an apartment for a few months at a time for work and have to rent the furniture for their living place and they can have the necessities. Such as a couch, bed, TV, a table and some chairs. It is convenient for the person to be able to rent these items and return them without having to spend a lot of money moving and or buying the items.
Two Advantages and Disadvantages
- Don't have to actually purchase the item.
- Can own the item at the end of the contract.
- In a rent-to-own plan the cost can be double or triple than what you would actually pay for the item.
- Fees for services
3 Alternatives to this Credit
- Buying the item instead of renting it because it would cost less in the long run.
- Calculate all the money that would you would save if you didn't use the renting place.
- Borrow the items from someone else such as a friends or family.