Going with rent to own for affordable home furnishings differs drastically than credit cards. The first and main difference is the customer does not incur any debt. There is no obligation to make the next payment. And the customer can return the product at any time for any reason without penalty.
With traditional rent to own stores, credit is not needed to acquire household furniture, HD TVs, computers and appliances.
With credit cards, you have to be approved to get a credit card. When you purchase an item with a credit card, you’re legally obligated to make the payments. And, with credit cards, if you want to return the product, it is either difficult or costly and any payments made are lost.
According to the recent studies, the majority of Americans believe if you are in a rent to own transaction, you are legally obligated to own the product which goes against the whole point of rent to own. It’s a rental first with an option to own. And, no credit is extended removing legal liability if you want to return the product.
What is similar to using a credit card vs rent to own is that both have the flexibility of payments. The more money your payments are and how quick you make your payments determine the final cost if you choose to own the product. With both credit cards and rent to own payments, you can pay off the item at any time during the transaction. Paying an item off early saves you money.
Most Americans believe with rent to own your stuck with the same payments until the very end and do not realize the flexibility of the transaction.
The rent to own transaction is becoming more and more popular with Americans and retail shops offering the option to their customers. With credit and incurring debt becoming less popular and more difficult to obtain, more Americans are using the rent to own transaction but only after they understand it.
These recent studies conducted by APRO show when customers are presented with all of the features of the rent to own transaction, they are more likely to use it especially against credit cards.