white kitchen with large oven and stove range

Rent-To-Own Appliances

The increasingly popular option of getting rent-to-own appliances has given more opportunities to consumers than ever before. This option can help make furnishing your home with the products you love more realistic, even with less-than-stellar credit history. Learn about these critical aspects of getting a rent-to-own appliance lease below:

  • What are Rent-to-Own (RTO) Appliances?
  • How does an Appliance Lease Work?
  • What Kinds of Appliances Can You Rent-to-Own?
  • Who Offers Rent-to-Own Appliances?
  • Rent-to-Own Appliance FAQs

Rent-To-Own Appliances – What Is It?

What are rent-to-own or lease-to-own appliances? These are brand-name home appliances that you can get by making rental payments as you go. This flexible payment option aims to help people with bad credit history get quality household items through leasing.

The leasing flexible payment option has some distinct advantages, including potential access to new, name-brand products without taking out credit. Please note that your credit may be checked when applying for a lease.

laundry room with front loading washer and dryer

There are thousands of rent-to-own stores across the US, serving millions of customers each year. These stores are often available to low to moderate-income consumers. Many rent-to-own consumers may have no savings, bad or no credit history, and limited options for getting pricey home appliances.

The rent-to-own sector grew in popularity in the late 1960s due to the banks turning down people who didn’t qualify for credit. Banks could extend credit to help consumers pay off furniture and appliances back then, but requirements often made credit difficult to obtain for consumers.

How Do Rent-To-Own Appliances Work?

A rent-to-own payment option comprises a rental contract with manageable periodic (sometimes weekly or monthly) payments. It may be ideal for consumers with no or less-than-stellar credit history because it may allow them to get state of the art appliances with bad credit.

The RTO model differs from other payment options, such as in-store credit, because it’s not a loan and doesn’t accrue interest. Please note that although the RTO model does not include interest, there are comparable leasing fees included. Consumers with established credit scores may have a solid chance to qualify for in-store credit.

store display of dishwashers

As an example, suppose you wish to rent a new dishwasher and have no credit, or you’re coming out of bankruptcy. Due to this, you may be ineligible for traditional financing and so applying for a rent-to-own option may be a good option for you. You head down to your local rent-to-own store and apply for your preferred payment plan for the rent-to-own appliances.

For instance, you may choose to pay the retail price and own the dishwasher outright. Or you may decide to apply for a rent-to-own contract which may allow you to lease the dishwasher through periodic payments. If you wish to own the dishwasher eventually, you have multiple options. Be sure to know the terms of your agreement inside and out.

Here are some example options that American First Finance offers:

  • Early Buyout Option (EBO) – save on rental fees by paying off your RTO agreement in full early, often within 90 or 101 days, and own the appliance earlier.
  • Early Purchase Option (EPO) – pay off your RTO agreement after the EBO but before the end of your agreement term.
  • Full payment option – pay for the appliance for the entire term of your RTO agreement.

Popularity of Rent-To-Own Appliances

A study by the Federal Reserve in 2018 showed that 40% of Americans would struggle to cover a $400 emergency. That, in part, explains why subprime lending is a common practice in the country. A subprime loan is a loan product that’s available to borrowers who are unable to apply for conventional loans. These are typically individuals with limited credit history, low income, poor credit, or poor quality collateral. While convenient, subprime loans often carry a higher than the average interest rate, making them unsuitable for some purchases.

In comparison with subprime loans, the RTO option is not a loan and it doesn’t accrue interest. Please note that although the RTO option does not include interest, there are comparable leasing fees included.

Rent-to-own stores are available to a large market that has been historically underserved, which underpins their explosive growth in the face of an expanding no-credit economy. According to the FDIC, more than 7.8 million households in America are unbanked, while 23% of American families don’t have a credit card.

Currently, the RTO industry comprises almost 10,000 stores spread across all 50 states and catering to nearly 5 million customers. The proliferation of these stores makes the RTO model readily available to people who need it. Hard economic times have created a large population of people with less-than-perfect credit, surging the demand for RTO services. Fortunately, today, there are more store and product options than ever for someone looking to rent-to-own appliances.

What Kind of Appliances Can You Rent-To-Own?

You can rent to own most types of appliances you need to turn your house into a home. Rent-to-own appliances let you furnish your home with everything you need to create a custom living space. This flexible option may allow you to have everything from kitchen appliances to washers and dryers, TVs, microwaves, and home theaters.

Many retailers offer next-day delivery or same-day free delivery.

Available Lease-To-Own Appliances Items

Here’s a list of some example appliances that can be leased on a lease-to-own arrangement.

  • Washers and Dryers
  • Refrigerators
  • Ranges
  • Air conditioners
  • Dishwashers

Washers and Dryers

Washing machines and dryers are critical home appliances. They’re highly convenient in keeping your clothes clean and in excellent shape regardless of the season. Dryers are available as both gas and electric dryer model types. They help you while giving you peace of mind when you need it most. Washing machines fall into three broad categories: front load washer, top load washer, and combination washer + dryer.

  • Front-loading: They’re space-saving and can handle bigger loads or bulkier items.
  • Washer & Dryer Combo: They combine the washer and dryer in one cabinet and are ideal for tiny homes and apartments.
  • Top loading: Smaller, low-priced washing machines for light laundry loads.

Top washing machine manufacturers include LG, Samsung, Whirlpool, GE, Amana, and Maytag.

Consumer Washing Machine Brands

  1. Whirlpool
  2. LG
  3. Samsung
  4. Amana
  5. Maytag
  6. Electrolux
  7. Bosch
  8. Haier
  9. Speed Queen
  10. Avanti
laundry room with washer and dryer

Refrigerators

Refrigerators are pricey but critical kitchen appliances with a long lifespan. They are central to everyday life as they help to store and preserve perishable foods in the home.

There are various types of refrigerators to choose from, including:

  • Top-freezer: These are low-cost traditional models that have a freezer above the fridge.
  • Side-by-side: These are slim models with a vertical freezer that’s placed opposite the refrigerator.
  • Bottom-freezer: These are popular, spacious models with excellent storage space in the freezer and refrigerator sections.

Some of the top refrigerator brands include GE, Samsung, Frigidaire, LG, Whirlpool, and Maytag.

Consumer Refrigerator brands

  1. Whirlpool
  2. Maytag
  3. LG
  4. GE
  5. Samsung
  6. Frigidaire
  7. KitchenAid
  8. Café
  9. Danby
  10. Electrolux

Popular top brands include LG, GE, Whirlpool, and Samsung.

couple shopping for fridge in store

Ranges

Cooktops are an essential kitchen appliance with a daily application. They are critical to food preparation, have a hefty price tag but can last for a lifetime. They’re an excellent item to lease due to a high return on investment.

Ranges fall into three basic categories based on fuel:

  • Electric range: The burners and the oven run on electricity.
  • Gas range: The burners and oven use gas as the primary fuel.
  • Dual-fuel range: These models often pair gas burners with an electric oven.

Some of the leading range brands include LG, Samsung, KitchenAid, Bluestar, Whirlpool, and GE.

Consumer Range Brands

  1. Whirlpool
  2. GE
  3. LG
  4. Samsung
  5. KitchenAid
  6. Bluestar
  7. Maytag
  8. Café
  9. Bosch
  10. Frigidaire
white kitchen with silver stove and range

Notable Appliance Stores for 2022

Many stores support in-store and online applications when applying for an appliance lease. American First Finance works with a large network of stores – you can apply for an appliance lease inside participating retail locations or through their website.

Note: The select stores below may not all have merchant relationships with AFF.

Here are some select stores for 2022:

  1. American Freight
  2. Target
  3. Lowe’s
  4. Conn’s Home Plus
  5. Wayfair
  6. BestBuy
  7. Big Lots
  8. Nectar
  9. Mattress Firm
  10. AAMCO
store display of ovens and stove ranges

Apply for Rent-To-Own Appliances Near You

People with less-than-stellar credit history are often considered high-risk borrowers and find it challenging to secure loans at competitive rates. According to Experian, bad credit often refers to a history of failing to pay your bills on time and having a credit score that’s under 580. Such people have a hard time qualifying for a loan or getting a credit card.

Most people with bad credit usually find it difficult to make large purchases that typically require a credit card. As a result, they have difficulties furnishing their home or buying everyday appliances such as fridges, cookers, and washers. In most cases, people with bad credit are forced to make do with low-quality or second-hand appliances. A rent-to-own plan can sometimes be a better solution as it allows them to lease and potentially own quality appliances without a substantial cash outlay.

American First Finance is a leading payment solutions company that helps shoppers without pristine credit broaden their shopping horizons. The company buys top-of-the-range merchandise such as home appliances and leases them to customers at affordable renewable payments.

Unlike other merchants, American First Finance doesn’t base approvals entirely upon your credit score and uses other factors in their decision process. That improves the turnaround time so you can take possession of the appliances quickly. However, the company may check your credit history to ensure that you can commit to a payment plan. A quick approval process doesn’t translate to guaranteed approval.

store display of dishwashers

Rent-To-Own Appliances Options in Summary

Rent-to-own may be a flexible payment option for people with bad credit history to lease quality appliances without a considerable cash outlay.

You can lease any type of home appliance you need to improve your quality of life.

Apply for Rent-To-Own Appliances Online

American First Finance partners with many merchants across the country, giving you matchless freedom when applying for RTO appliances. We’re in partnership with some of the largest companies in the retail space, including Conn’s, American Freight, Ashley HomeStore and more.

Apply for a rent-to-own option on our website for ease and convenience.

Use our merchant tool* to find a merchant near you and fill in the application online. The application process takes only a few minutes, and you can sign a contract as soon as you’re approved.

*Payment solutions vary based on merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or cash purchase solution you intend to apply for.

Rent-To-Own Appliances FAQs

Here are some of the commonly asked questions about rent-to-own appliances.

 

Q: What Does Rent-To-Own Mean?

A: Rent-to-own is a flexible payment option that may allow people with bad credit to get high-quality products without a huge cash outlay. This may enable people with low credit scores or coming out of bankruptcy to improve their quality of life.

 

Q: What Credit Score Qualifies for Rent-To-Own?

A: American First Finance will check your credit, but your credit score is not the only determining factor. We consider more than just your credit score during our approval process, so there’s not a single credit rating that will ensure approval.

 

Q: How Can I Apply for Rent-To-Own Appliances?

A: You can apply for rent-to-own appliance options right here on our website. Not everyone will be approved, but having bad credit doesn’t automatically mean you’ll be denied. Your credit may be checked but having no or a low credit score doesn’t necessarily disqualify you.

Just select a store near you and apply online in minutes.*

 

Q: Where Can I Shop for Rent-To-Own Appliances?

A: American First Finance’s payment options are available in hundreds of store locations across the US for our customers to choose from. Our Merchant Search tool will help you find a store near you, and you can apply for a lease online and get a fast decision.