Rent to Own

By: Mason Turner

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Type of Credit

You find the item you are looking for, then you pay the rent on the item until it and its interest is all paid off, then you own it.

Interest Rates and APR

Your interest rates will be determined by the price of the item you want.


The average fees paid is 221%

Describe this type of credit

Arrangement between consumer and seller where a consumer rents an item until he or she pays that item off or returns it.

How are interest rates and fees calculated?

They are determined by the purchase price in market.

What are the sources of this type of credit?

Rent-A-Center

Provide an example of a company in your community or media that provides this credit?

Rent-A-Center

When might a consumer seek this type of credit?

When they might only need or use the item for a short amount of time.

What are two advantages to having this type of credit?

There is flexibility in requirements, and no taxes.

What are two disadvantages of this credit?

You might not qualify for the loan.

Three alternatives consumers should consider before using this credit

-Credit card

-boost credit score

-wait for a sale

sources

www.moneytalksnews.com

banking.about.com