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.
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