Why Lease-to-Own is the Best Option for Bad Credit

Why Lease-to-Own is the Best Option for Bad Credit

Are you struggling to get approved for a loan due to bad credit? You’re not alone. According to a study by the Federal Reserve, nearly 1 in 8 adults in the United States have poor credit (Source: Federal Reserve Survey of Consumer Financial Options). If you’re in this situation and are looking for a way to acquire the things you need, such as furniture, appliances, or decor, lease-to-own could be the solution you’re looking for.

The Benefits of Lease-to-Own for Bad Credit

When you lease-to-own, you’re essentially borrowing an item with the option to purchase it at the end of the lease period. This type of arrangement can be beneficial for people with bad credit, as it doesn’t require a credit check and allows you to spread out payments over time.

Another benefit of lease-to-own is that it can help you build credit. By making on-time payments, you can demonstrate responsible financial behavior and improve your credit score. According to Credit Karma, making regular payments on a lease-to-own agreement can account for up to 20% of your credit score (Source: Credit Karma).

How Lease-to-Own Works

When you lease-to-own, you’ll typically sign a contract outlining the terms of the agreement, including the monthly payment amount, lease period, and purchase option. You’ll make regular payments on the item until the end of the lease period, at which point you can choose to purchase it at a predetermined price or return it without penalty.

At Harmony Own, we offer lease-to-own shopping with no credit needed and flexible payments. We partner with Katapult to provide a seamless and convenient experience for our customers. You can even get approved up to $3,500 in seconds and enjoy free nationwide shipping on high-quality furniture, appliances, and decor (Source: Harmony Own).

The Bottom Line

Lease-to-own is a great option for people with bad credit. Not only does it provide access to the things you need without requiring a credit check, but it also offers the potential to build credit and improve your financial situation over time. If you’re struggling to get approved for a loan or want to acquire an item without the burden of a large upfront payment, consider lease-to-own. It’s a way to get what you need, when you need it, without putting your financial future at risk.

Visit Harmony Own today to learn more about lease-to-own shopping and how it can help you achieve your financial goals.