Let’s face it — some of the best furniture from your favorite top brands, oftentimes unique online exclusives that would look perfect in your new room, are pretty pricey. That said, there is a way to furnish your house without breaking the bank: rent-to-own furniture. When you’re looking for replacements for your old sofa or chairs, this can be a gamechanger.
With rent-to-own furniture, you make a transaction to pay off the price of new furniture over time. Since it’s rent-to-own, you can furnish your residence with pieces from local stores all while paying low prices monthly. The best deals offer more than one payment option and are available regardless of creditworthiness. Some even offer an early purchase option to own your furniture early.
Rent-to-own furniture can be an advantageous solution if you don’t have the total amount available to purchase a furniture piece outright but still need it to tie your room together. Flexible payment options can help you get immediate access to the furniture you want while making payments at the best time for you.
Rent To Own Furniture: What You Need To Know
When it comes to rent-to-own furniture, things can get tricky or confusing if you don’t know what to expect. You can rent the appliance you need, electronics, mattresses, and much more with a rental purchase agreement.
Let’s break down some key info that you need to know about any normal rent-to-own furniture lease or agreement.
Does Rent To Own Furniture Build Credit?
Yes, in many cases. Whenever a company has a rental or lease agreement with a customer, they oftentimes run a credit check and report information about that agreement to the big three credit bureaus: Experian, Equifax, and TransUnion. This report holds the buyer accountable for the long-term obligations associated with any new purchase on a rent-to-own plan.
So long as you make your rent-to-own furniture payments on time and in the right amounts and follow the terms of service, you’ll build good credit since that shows the credit bureaus you are a reliable borrower. The reverse is also true, so be careful. If you miss your payments or default on your rental agreement, the credit bureaus may lower your score overall.
Do You Need a Good Credit Score for Rent To Own Furniture?
Not usually, though this depends on the rent-to-own furniture store/company you contact. Some rent-to-own furniture stores may require you to have credit above a certain minimum.
Others may be willing to rent furniture to you if you have low credit or no credit, which can be useful if you are starting to build a credit history or are recovering from bankruptcy. There’s also often a cash option for financing rent-to-own furniture.
Do You Have To Make a Down Payment on Rent To Own Furniture?
Sometimes, but not always. Some rent-to-own furniture companies may require you to make a down payment of 10%, 20%, or some other percentage of the furniture’s total value. Others may allow you to simply make your first rental payment as agreed, take the furniture home, then resume rental payments each month.
So, you’ll need to read the terms of any furniture rental contract carefully before signing on the dotted line. You should do this anyway to make sure there aren’t any ancillary fees, contingencies, and more that could be bad news.
Are There Fees on Rent To Own Furniture?
Sometimes. Many rent-to-own furniture companies have applicable sales tax and charge you fees for taking out the rental contract in the first place. Others may charge you fees if you make a late payment, or if your rental payment doesn’t go through (for instance, if the bank account you made the payment with is unexpectedly empty).
In addition, some rent-to-own companies have delivery set-up fees, including big-name stores like Aaron’s, Ashley, and others. Each of these companies has a unique rent-to-own agreement that will tell you everything you need to know about fees, how to handle errors, and where to go for repairs.
Again, this depends on the rent-to-own program in question. Other companies may not charge you any fees at all. If you try to pay for the furniture before the rental term ends, some companies may charge you fees for doing this. It’s a better idea to rent from a company that doesn’t charge an extra fee just for trying to own your furniture early.
Furthermore, while some offer free delivery, others may charge delivery fees.
Does Rent To Own Furniture Have Interest?
Rent to own furniture never has any interest or APR, which is a huge plus side to using this method to obtain furniture.
Leased furniture from Becca’s Homes is usually a better investment since there aren’t any fees or interest rates to worry about.
Is Rent To Own Furniture a Good Investment?
It can be! Renting to own your furniture could be advantageous if:
- You don’t have enough money to purchase the perfect furniture for your home or room outright
- You want to furnish an entire room without breaking the bank or completely emptying your wallet. You can rent to own multiple pieces of furniture simultaneously for an affordable price, then make lower monthly payments until all the pieces are paid off
- You want to try out a piece of furniture and aren’t sure whether you will truly love it. Some rent-to-own furniture contracts allow you to return the furniture later
You can rent all kinds of furniture from these dealers, including a nightstand, couch, dresser, bed, and more.
Take a hard look at your budget and consider what you really want out of your future furniture before signing a rent-to-own contract. Most rental agreements have you pay monthly or bi-weekly. You should also consider whether a rental store has good product availability, extra fees like a processing fee, and more.
The Bottom Line
While rent-to-own furniture can be a great solution for budget-minded shoppers, there’s another alternative to consider: leased furniture from Becca’s Homes.
You just lease it from us the same way you lease a house. Our lease contracts are affordable, fair, and great for folks in a variety of financial situations.
On top of that, we have the lowest prices, regular coupons, and special offers for many great products. As the premier rental-purchase choice, you can shop quality brands or discuss installment contracts with us starting today.
Check out our leased furniture selections or contact us for more information about long-term agreements, short-term rental agreements, and exclusive deals.
Sources:
Credit Reports and Scores | USAGov
annual percentage rate (APR) | Investopedia
Credit Score: Definition, Factors, & Improving It | Investopedia
