Can I Rent-to-Own with Bad or No Credit?

Date posted: Sept. 10, 2015

If you need new furniture, appliances, or electronics but you have bad credit or no credit at all, then renting to own is a viable option. In most cases, there is no credit check involved with renting to own these items, and the retailer delivers them directly to your door as soon as you make the first payment.

The Rent to Own Process

Rather than buying furniture outright or renting it with no option to purchase, renting to own is a fantastic choice. You make small weekly, biweekly, or monthly payments you can afford, and when you have made all of the payments as lined out in your agreement, you take ownership of your items. Typically, all you need is proof of residency, a few references, and a steady source of income.

No Credit Check Needed

People often wonder how they can get big-ticket items like televisions and living room suites with bad credit or no credit at all. Instead of checking your credit, these retailers instead verify your address with a utility bill, ask for references (such as names and numbers of friends or colleagues to verify your integrity), and ask about your employment history. As long as you have the income to make the payments, you are qualified for the merchandise. What's more, you usually do not have to make a down payment. Just make your first payment to enjoy fast, free delivery of your items, and then make all of your weekly, biweekly, or monthly payments on time.

Your Rights and Responsibilities

All you have to do is enjoy your merchandise, avoid any misuse or intentional damage, and make your payments on time. If you cannot make a payment for any reason, be sure to contact the retailer to get your options. If the item stops functioning for any reason, is damaged by a power surge, is involved in theft, or is destroyed by fire, this is usually all covered through the retailer's insurance plan, which is an optional purchase.

Build Your Credit

Rent to own options are great for building credit, too. After all, it is considered a line of credit that you can utilize to purchase the items you want and need. If you have no credit, it is a fantastic way to build it since timely payments result in high credit scores. What's more, if you have bad credit, you can also raise your credit score over time when you combine your timely rental payments with other steps designed to resolve past debts. Not all rent-to-own retailers report timely payments, however, so be sure to find out whether this is the case before you sign your rental agreement.

Whether you have bad credit or no credit at all, you can rent to own your furniture, appliances, and major electronics with low weekly, biweekly, or monthly payments. It is easy to enjoy the things you want and need as long as you have a permanent residence, a few references, and a source of income.

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