The High Cost of Rent-To-Own

28 Feb The High Cost of Rent-To-Own

Rent-A-Center has been stepping their advertising campaign boasting “no credit checks” and “no credit needed.”  A recent television commercial suggests that using Rent-A-Center’s rent to own model is better in these tough economic times.  Don’t be fooledby these advertisements!  Yes, rent to own does not often require good credit or any type of credit check but that does not make it a good deal.  For the “privilege” of not needing credit, you are paying quite a premium.  Consider the following example provided in an article entitled “Rent-A-Center More Like Ripoff Center”:

For a sofa and loveseat with a retail price of $1,048, a renter would pay $26.99 per week for 104 weeks, adding up to a whopping $2,806.96….In this case, it works out to a 122% APR. That kind of makes Rent-A-Center the payday lender of the furniture world.

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