HOW RENT-TO-OWN PROGRAMS CAN HELP YOU IMPROVE YOUR CREDIT SCORE

Rent-to-own programs are often considered a last resort for people with bad credit who can't get approved for a traditional loan. But did you know that rent-to-own programs can actually help you improve your credit score? That's right, these programs are not just a way to get a new fridge or a couch, but they can also be a stepping stone to better credit.

Let's start with the basics. Rent-to-own programs work by allowing you to make payments on an item over a set period of time, usually 12-24 months. At the end of the term, you have the option to buy the item outright or return it to the store. Sounds simple, right? Well, it gets better.

When you sign up for a rent-to-own program, the company reports your payments to the credit bureaus. That means every time you make a payment, it's like a little gold star on your credit report. And the more gold stars you have, the better your credit score will be.

Now, I know what you're thinking. "But won't these programs charge me crazy high interest rates?" Well, yes and no. While it's true that some rent-to-own companies do charge high interest rates, there are plenty of companies out there that offer reasonable rates. It just takes a little bit of research to find them.

In fact, some rent-to-own programs are even interest-free! That's right, you can improve your credit score without paying a dime in interest. And if that's not a reason to celebrate, I don't know what is.

But wait, there's more! Rent-to-own programs can also help you build good credit habits. Because you're making regular payments on a set schedule, you'll be forced to budget and manage your money more responsibly. And that's a skill that will serve you well for the rest of your life.

Of course, like any financial decision, rent-to-own programs should be approached with caution. You'll want to make sure you're working with a reputable company and that you're able to afford the payments. But if you do your due diligence and use rent-to-own programs responsibly, they can be a great way to improve your credit score and get the things you need.

In conclusion, rent-to-own programs are not just a way to get a new TV or a laptop, they're also a way to improve your credit score and build good financial habits. So the next time someone tries to shame you for using a rent-to-own program, just smile and tell them you're building credit. And then invite them over to watch Netflix on your brand new TV.

Until Next Time,

Bridgehome Solutions Team!