Rent To Own

Alternative Credit

What is Rent To Own?

Rent To Own is a type of alternative credit that is a way for you to buy something but the transaction does not occur immediately. For example, you can rent to own a house and if you do not like the house, you can end the deal and not have wasted all your money. On the other hand, if you like the house you can pay the rest of the money and buy it in full.

Interest rates, fees, and APR

The interest rates, fees, and APR's all depend on what you rent. Usually it is between 70-200%

What are sources of this credit?

Any place that sells tangible items will usually have rent to own. K-Mart is a great example because you can get this credit for things such as couches and beds. Automobile dealerships can offer this, real estate agencies also can offer this.

Advantages and disadvantages for Rent To Own


  • You can rent to own even with bad credit
  • You can lock in prices for a house so that if prices go up, yours will stay the same

  • If you end up not buying the item, you cannot get a refund.
  • Renting the object might be higher than actually buying it

3 things to consider when thinking about Rent To Own

  1. Save up your money before hand rather than waiting
  2. Make sure you are able to pay for the loan
  3. You can build your credit on this
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