There are a lot of Americans who cannot afford to pay in full for necessities. In fact, nearly half of all American households are surviving while living paycheck-to-paycheck. They aren’t able to build up their savings and have little money saved for the proverbial rainy day. This means that if your dishwasher breaks suddenly, you can’t simply buy a new one outright. Furthermore, this is one of the main reasons why a lot of couples put off getting engaged; if you can’t buy the engagement ring that you want outright, you probably won’t feel like proposing.
The reality is that there are other great options available for those who would like to buy everything from furniture to appliances without paying for them in full right away. In particular, buyers need to consider lease-purchase programs. However, many don’t do so simply because they get hung up on the term “lease” and don’t explore them further. That’s why we’re looking into these particular customer financing options today. Here’s why lease-purchase programs can work — not only for those who are struggling to make ends meet but also for those who are interested in rebuilding credit over time.
What Are Lease-Purchase Programs?
When attempting to understand lease-purchase programs, you need to focus less on the “lease” part of the program and more on the “purchase” portion. But it’s understandable if you’re confused at first.
When dealing with this kind of program, you’re basically able to buy brand new merchandise and pay for it over time. Usually, this time period will be structured in accordance with what you’re buying. The time frame will typically be anywhere from a few months to a few years. You’re basically renting the merchandise until you’ve paid it off and own it in full.
This may seem quite similar to buying on credit. But if you’re living paycheck to paycheck, this may seem problematic. You may have bad credit or no credit history at all, so you might find buying on credit difficult.
Fortunately, this is not something for you to be concerned about. Essentially, lease to purchase programs allow for bad credit financing. Your credit score and credit history are irrelevant for such programs, making these programs particularly accessible to young people beginning to make their way in the world.
The great thing about lease to purchase programs too is that you can often accommodate the broken-up payments by making just a few changes in your budget. The payments are made to be manageable. But you may want more of an incentive before committing to this kind of structure.
What Are the Other Benefits to Lease-Purchase Programs?
There are numerous benefits to lease-purchase programs beyond no credit needed financing. Because there are manageable payments involved, you can build or rebuild your credit as needed. Furthermore, you can own brand new products that are high-quality versus settling for used or low-quality products.
You also have the option to return the product at any time, with zero obligation to continue paying for it. As previously mentioned, nothing will affect your eligibility for this kind of program, even if you’re filed for bankruptcy in the past. As long as the product is returned, there will be no hit on your credit history if you don’t end up buying the product in the end. And indeed, because this not the same type of program as would be associated with a loan, there is no interest incurred over time. You’re just paying for the product.
Can I Simply Rent the Product?
That is essentially what this type of program allows. If you need an expensive, high-end product for a limited period of time, this type of program is perfect for your needs. Simply rent the product and pay for it for as long as you need it, and then return the product when you’re done. While you’re at it, you can boost your credit without making a full-time commitment.
There are a lot of different options available when you begin seeking to buy things like furniture, appliances, or even jewelry. But few are as available to all and as helpful as lease-purchase programs. Don’t pass up this option!