Rent to Own

By: Addison Harris

Descripition

- It is an arrangement between consumer and seller where the consumer rents an item for a certain amount of time.

- Two advantages are that there's a flexibility in requirements and no taxes.

- A disadvantage inludes purhaps not qualifying for a loan before your option term expires.

3 Alternatives for this.

- Credit card

- Boost your credit score

- Wait for a sale

How are interest rates calculated?

It is determined by the purchase price in market.

When?

People use this when they only wish to use an item for a short time.

The average APR is 221%

One source for this type of credit would be Rent-A-Center