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The High Cost of Rent to Own

The concept of rent to own can be very appealing to people with low credit scores and who are short on cash but wish to purchase new electronics, appliances or furniture. Rent to own stores make it possible to own items that you may not otherwise be able to afford. Because you don't have to pass a credit check, and because there is usually no deposit required, renting to own seems like a winning combination, but in the end, the cost is greater than you may realize.

Fees on Rent to Own Items are Limitless

Since renting to own does not involve a line of credit, there are no regulations on the exorbitant fees that you will inevitably end up paying that are well over the true cost of the item. Financially, renting to own makes no sense and ends up being far more expensive than traditional methods of purchase. For example, say you rent a computer from a rent to own company. You will pay somewhere around $29.99 a week for, say, 52 weeks before the computer is now yours. At this rate, you will have spent $1,559.48 on a computer that other stores are retailing at $600. With the expenses you will end up paying out of pocket, you could have purchased two computers for the price of one at a rent to own store. Even by saving just $30 a week, you could purchase that same computer from a retail electronics store in just 5 months and save yourself over $900 in the process.

Even High Interest Credit Cards are Cheaper

Though it is almost never advisable to make a big ticket item purchase using a high-interest rate credit card, even that is financially a better option than renting to own. With interest rates in the triple digits, even a credit card with an interest rate of 29 percent will cost you far less than going through a rent to own process. You will always be better off making your purchases through other means rather than renting to own.

Learn What You can Afford with Advantage CCS

If you have poor credit or are low on funds but you need to purchase new electronics or furniture, contact Advantage CCS. Through credit counseling and budget management, the professionals at Advantage CCS can work with you to get an understanding of your financial situation and help you learn to budget in order to set aside money to purchase items you need for your home rather than getting caught in a very expensive trap of renting to own.