How long does my approval last?

• Your approval is valid for 90 days. If you have not signed a lease-to-own agreement within 90 days and your approval expires, you can reapply.

What is "The No Credit Option/Alternative"?

• “The No Credit Option/Alternative” means this is not a credit, loan, or financing transaction. It doesn’t mean we don’t conduct an inquiry of credit history or creditworthiness. We consider multiple data points in reviewing an application and regularly approve customers with less than perfect credit history

How is a Lease different from a loan, credit card, or other credit product?

• In a consumer credit scenario (like a personal loan, retail installment sale, or credit card plan), a financial institution extends funds to an individual, or to another on the individual’s behalf, which can then be used to make a purchase. When a consumer makes a purchase on credit, the consumer borrows funds, obtains ownership at the moment of that transaction, and then makes payments back to the creditor, which includes finance charges such as interest.
• In a credit scenario, the property belongs to the consumer from the time of the purchase, and debt is created between the consumer and the creditor, immediately obligating the consumer to pay the full amount of the purchase price, plus interest charges that may accrue.
• That’s not how it works with lease to own agreements. Like we mentioned, an customer does not own our Property until they choose to, either by making all of the renewal payments under the lease or exercising an early purchase option. The lease-to-own provider does not extend credit and does not charge interest on a lease. That said, there is a cost associated with a Lease. We will discuss that later on.

Initial Rent Payment vs. Down Payment 

• A “down payment” is a term commonly used for reducing a borrowed amount in consumer lending. In the context of an Lease-to-own agreement, it would cause confusion. For example, the customer could claim that they own a part of the leased Property because they paid cash to the retailer prior to accepting the lease. Lease-to-own providers does not charge or accept down payments, and participating retailers are not allowed to receive down payments on Property we are leasing. It should be noted that a retailer can include other property in a customer’s single order, but anything included on the Lease agreement must be rung up separately. No down payment can be accepted from the customer, and the payment they are giving for the specific property they are purchasing does NOT include the Property contained in the Lease agreement.

What is a lease renewal payment?

• A lease renewal payment is the periodic rent payment scheduled at the time the Lease agreement is created. The customer pays in advance for the possession and use of the Property. If they want to continue to possess it, they make the next scheduled renewal payment. If a customer elects to make the total number of lease renewal payments shown on their Lease, they own the Property. 

Cost of leasing/Daily Lease Rate vs Interest Rate/Interest 

• There is a cost associated with a Lease, just as there is in a credit transaction. But the costs operate differently. The Lease does not have interest or an interest rate attached to it, there is no interest but leasing costs do apply and the cost of leasing and the daily lease rate is noted in each lease agreement. For each day a customer has possession of the Property, the daily lease rate applies and is the rental fee paid for possession and use of the Property. But the daily lease rate does not operate the same way as interest, and should never be confused with it.
• Note: “no interest” does not mean “no-cost”. If a customer chooses to make all renewal payments, they will pay approximately double the price they would have paid if they had purchased with cash rather than leasing.

What is an early purchase option?

• An early purchase option is an option the customer can use to purchase the Property from the lease-to-own provider earlier than making the total stated lease renewal payments. The customer has the right to exercise an early purchase option at any time.

Return of property?

• An important feature of the Lease-to-own agreement is that a customer can terminate it at any time without penalty.
• Customers are provided the right to return the Property at any time, without penalty. Of course, they are still responsible for paying any past-due renewal payments and applicable fees.