There are many reasons why you may not want to use credit when you need to pay for something over time. You may be in the closing process on a loan, you may need to build credit, you may have had life circumstances that affected your credit score, or your credit may already be at its maximum. More people are in this situation than are not, so you are certainly not alone.
When an emergency happens and you don't have enough in the bank to cover a dire-need expense, are there other options besides credit cards or a loan that you can take advantage of?
Yes: An Introduction to Rent to Own or Lease to Own Financing
Outside of traditional credit, are virtual lease to own or virtual rent to own finance options. In several circumstances, these options can even be more affordable or at a price advantage over traditional credit cards or personal loans. Plus, virtual leases are all done through technology, so the application process is quick, easy, and painless.
Financing with No Credit Needed
Rent to own or lease to own finance options are purchase-item based, unlike credit-based or collateral-based loans. Lease options are typically available on durable, life-essential goods such as appliances, mattresses, furniture, and tires. With this type of financing (or leasing), items are rented or leased to a customer where at the end of the term, ownership is transferred in full as a lease-purchase to the renter.
How about overall cost, are Lease to Own or Rent to Own Plans Costly?
Not necessarily, especially in context.
The first thing to keep in mind is that a "no credit check" cash loan will have a very high-interest rate due to the likelihood of application fraud as well as the high propensity of a borrower to default on the loan. This includes payday loans, title loans, or even some personal loans.
Outside of these high-rate loans, but still with no credit needed, are lease to own or rent to own finance options. On a lease-purchase (or rent to own) program, there is no interest "rate" or "APR", just a lease or rental fee that is paid along with the item's sale price. Payments are typically split into small affordable installments over a specific time (the lease term) that coincide with a customer's payday. Another benefit of leasing to own over a loan is that if something happens and you're no longer able to make payments, leasing companies provide several options to help you with your financial situation, including the option to return the merchandise and stop payments from there on out with no hit to your credit score.
After a lease or rental is taken out and signed for, there are several options available to customers for them to save money on leasing fees.
When a lease to own or rent to own option makes the most sense for your needs, it's good to research which company will offer you the best terms. It's important that the lease to own or rent to own company is transparent in their fee structure, offers affordable terms and payments, offers early buyout discounts, and will be understanding of your unique circumstances.
Konerstone Credit was founded for just this reason. With its mission of being the most affordable, customer-centric, lease-to-own experience, Kornerstone Credit offers some of the most affordable leasing programs in the country: with early buyout discounts that can save its customers significant amounts of money. If you would like to know more, give a super-friendly KC rep a call today at 888-521-5111 or hit the live chat bubble below on the KornerstoneCredit.com website.
Lease to Own or Rent to Own Can be a Great Option for Anyone
Virtual lease to own or virtual rent to own programs are offered by different stores all over the county, so you won't need to walk into a rental center, or rental store to utilize an affordable payment plan on what you need. There's a great chance that your local furniture, appliance, or tire store already has a program in place. With same as cash options and early buyout discounts, lease to own and rent to own programs can be a great way to take home something that you need today while giving you the time you need to pay for it without taking out another credit card or applying for a high-interest collateral loan.
Hoping to learn more about financing furniture, tires, appliances, and more? Check out these articles to get up to speed.
- No Credit Needed Programs for Appliances
- Defining Common Financing and Leasing Terms
- Find a Store