A rent-to-own payment option entails a short rental contract that includes scheduled, periodic rental payments over time. It’s a relatively new leasing solution for customers with no or less-than-immaculate credit history because it can help them get access to necessary household items and goods with bad credit.
Unlike other purchasing options like in-store credit, rent to own is not a loan and has no interest. Please note that although the rent-to-own model does not include interest, there are generally comparable leasing fees included.
When applying for a rent-to-own payment option, an in-store merchant may run a credit check to determine whether you are eligible.
Suppose you want to purchase a $700 TV. You may choose to pay the total cash price outright or apply for a lease contract that allows you to pay periodic renewable payments.
Under American First Finance’s rental-purchase agreement, there are three options you can choose to own the TV:
- Early Buyout Option (EBO) – save on rental fees by paying off your rent-to-own agreement in full early, often within 90 or 101 days, and own the TV earlier.
- Early Purchase Option (EPO) – pay off your rent-to-own agreement after the EBO but before the end of your agreement term.
- Full payment option – pay for the TV for the entire term of your rent-to-own agreement.
You can apply with American First Finance in just a few minutes. If you’d like to apply for a rental-purchase solution option and have no or bad credit, you can still apply right here on our website. Approvals are never guaranteed, but bad credit won’t necessarily prevent you from being approved. We take more into consideration than just your credit score but may check credit. Find a store and click “Apply” to get started.*