Rent-to-Own Credit!

A Type of Credit

This Type of Credit

Lender lends something (furniture, car, house, etc.) to the borrower and is charged a periodic rental fee.

Interests Rates and Fees

Subtract the option fee, which is from 1-5% of the purchase price from the rent-to-own purchase price. Multiply the loan amount by the interest to determine the annual interest.

Divide the annual interest by 12 to determine the interest for each month.

Average APR

The average annual percentage rate is 221%.

Sources of Rent-To-Own Credit

Sources vary from automobile dealerships, furniture stores, and house leasers.

Example from our community

Ford Dealership, Ashley Furniture, etc.

When Someone might search for this type of credit?

Whenever one does not have enough money to actually pay for the thing they seek.

Advantages of Rent-To-Own Credit

The ability to "buy" with bad credit scores and the ability to lock in a purchase price.

Disadvantages of Rent-To-Own Credit

If you do not buy the house or whatever you are renting, you lose a lot of extra money. Another disadvantage is you might not qualify for a loan before your option term expires.

Alternatives

Pay Day Loan, Pawn Loan, and Title Loan