Lease-to-Own vs. Buy Now Pay Later: Which is Right for You?

Lease-to-Own vs. Buy Now Pay Later: Which is Right for You?

In today’s world of consumer financing, two popular options stand out: lease-to-own and buy now pay later (BNPL). Both models have gained traction in recent years, especially among younger generations looking to purchase items without breaking the bank. But what sets them apart, and which one is right for you?

What is Lease-to-Own Financing?

Lease-to-own financing allows consumers to rent a product or service for a specified period before purchasing it at the end of the lease. This type of arrangement is often associated with high-ticket items, such as furniture, appliances, and even homes. With lease-to-own, you’ll typically pay a monthly fee or deposit, and the option to buy the item at a set price or rate.

At Harmony Own, our lease-to-own options are designed to fit your specific needs, with flexible payments and no credit required (Learn more). This approach can be especially beneficial if you need to upgrade or replace a product but can’t afford the full purchase price upfront.

Credit Score Requirements: Lease-to-Own vs. BNPL

One key difference between lease-to-own and buy now pay later is the credit score requirements. While BNPL solutions often don’t check credit scores, some providers may perform a soft check or verify your income and employment.

Different from buy now pay later options, lease-to-own offers more flexibility for those who may have a less-than-perfect credit history. With Katapult, our partner in lease-to-own, you can get approved for up to $3,500 in seconds, even if you have limited credit history (Get started now).

How to Choose Between Lease-to-Own and BNPL

When deciding between lease-to-own and BNPL, consider your financial situation, needs, and goals. Ask yourself:

• Do I want to own the item at the end of the term?
• Am I looking for a more flexible payment schedule?
• Can I afford the full purchase price upfront, or do I need more time to pay?
• Will a lease-to-own agreement help me build equity in the item or achieve long-term savings?

According to a recent report by Statista, about 55% of consumers consider BNPL services as a key factor when making purchasing decisions, but 71% prioritize being able to obtain credit while minimizing or avoiding interest rates.

Alternative Options for Financing

Both lease-to-own and BNPL might not be the ideal solution for every situation. You can also explore alternative options, such as:

• Personal loans
• Credit cards with promotional financing
• Savings plans

It’s essential to analyze the pros and cons of each option and consider your individual circumstances before making a decision.

Conclusion

Choosing between lease-to-own and buy now pay later ultimately depends on your specific financial situation and needs. While BNPL offers greater flexibility with manageable installments, lease-to-own can be an excellent choice for building equity and securing valuable items while being more financially affordable. With Harmony Own, our team will help you navigate the process and find the best option for you to turn your home or furniture into a dream home that you can love without financial burden.

Looking for a better way to bring your dream home to life? At Harmony Own, we believe everyone deserves a beautiful home that inspires happiness, regardless of their financial situation. Get approved up to $3,500 in seconds with Katapult and discover a hassle-free path to homeownership that won’t break the bank.