AVOID RENT-TO-OWN FURNITURE
Jan. 9, 2017
At a glance, rent-to-own furniture can seem like an attractive option.
It isn’t technically a loan, because customers can return the furniture at any time for any reason. Your credit score doesn’t need to be pulled to rent the furniture, and it won’t be damaged if you can’t make the payments.
However, rent-to-own furniture can be incredibly expensive when you calculate the total cost you will pay. You may pay two or three times more than you would have if you bought the furniture with cash.
Do You Really Want to Pay $3,000 for A $1,000 Couch?
Additionally, rent-to-own businesses are notorious for bad business practices, including illegal collection tactics, confusing contracts, and hidden fees. Of course, there are legitimate rent-to-own businesses, but many of them are not.
Rent-To-Own Furniture Also Does Not Improve Your Credit when You Make Your Payments on Time.
If you truly need new furniture, obtaining a small loan would improve your credit and would cost you less in the long run than the prices charged by rent-to-own businesses. An even better option would be to shop garage sales, Craigslist, and classifieds and find used furniture you can afford to buy with cash.
Don’t waste your money on rent-to-own furniture. Shop around, plan ahead, and you’ll be able to get what you need without spending more than you should.
If you purchased rent-to-own furniture during your holiday shopping, now would be a great time to return it. Free yourself from long-term payments, and set yourself up for financial health this year.