Are you in the market for expensive merchandise but don’t have the funds upfront? A lease purchase contract may be the answer to your problem. In this article, we will delve into what a lease purchase contract is, the advantages it has, and how it can empower you to acquire the pricey items you desire.
What is a Lease Purchase Contract?
A lease purchase contract is a type of financing agreement that helps individuals with bad credit scores avail themselves of credit. This type of contract allows a person to lease an item (such as a car, furniture, or appliances) for a set period of time. During this period, the individual makes regular payments to the seller or lender.
A lease purchase contract is a great way to provide immediate help when it comes to buying expensive things. With the contract, you can use the thing right away without having to pay the full purchase price upfront. Instead, you make payments over time, usually with the option to buy the item at the end of the lease period. This can be especially helpful if you need access to the item immediately, but don’t have the funds to pay the full amount all at once. It can also provide you with some budgeting flexibility, as you can spread out the payments over time.
No Credit Needed
Unlike traditional mortgage loans, a lease purchase contract does not typically consider the tenant’s credit score as a factor in determining their eligibility to purchase a thing. Instead, the contract is based on the tenant’s ability to pay the higher value for the thing purchased.
Help Improve Credit
The main advantage is that it allows individuals with no credit or poor credit to establish a positive credit history. The tenant is responsible for paying the rent on time, and if they choose to purchase the item, their payments will also be reported to the credit bureaus: Equifax and TransUnion. This can help to improve their credit score, making it easier for them to qualify for a traditional loan in the future.
Purchase the Merchandise at Any Time
The contract allows you to rent a thing with an option to purchase it at any time during the lease term, allowing you to accumulate equity in the thing and to purchase it when you are ready. Additionally, this can help save on interest charges.
With the benefits of a lease purchase contract, it can help you overcome the challenges of saving for a down payment and building credit. You will be able to acquire the merchandise you wish without having to wait. If you’re looking to take advantage of a lease purchase contract, Okinus Credit Solutions is here to help you. To learn more about how we can help you get the expensive things without worrying about anything, contact us now.