According to FICO, more than 43 million Americans have a credit score of 599 or less. Credit reports and scores have a significant impact on an individual’s financial life. Consumers with low credit ratings face a variety of financing issues. From troubles getting approvals for the loan and credit card applications to punitive high interest rates for those approved.
The credit issues also cross over to homeowners with poor credit history trying to purchase home appliances, furniture, and electronics. More consumers are turning towards lease purchase programs as a bad credit financing option.
Lease-to-own programs continue to prove time and time again as excellent means to bring home your favorite appliances despite the bad credit rating. Here are five top benefits of using lease purchase financing.
The lease purchase programs provide added flexibility to the consumers as they negotiate with the seller on the terms for the deal. You can choose from a wide range of application financing to bring the items you want home. Whether furniture financing, jewelry financing, or optical finance- you can access a variety of products and services through Okinus credit solutions. Besides, you also get to choose among early payment options, low monthly payments, and no-down-payment programs.
2. Your Credit Score Does Matter
A survey by Northwestern Mutual shows that the average American has a debt of approximately $38000, excluding mortgages. It is easy to see how 16% of the population has a poor credit score. Luckily, most lease purchase programs do not require a history of good credit to sign up. Approvals hang heavily on your income source and the negotiated repayment plans. You may not have to worry about your credit history, relying on bad credit financing to bring the HVAC system home.
3. Faster Approvals
You may enjoy quicker approvals for your lease purchase applications. Traditional banks may use invasive and cumbersome bureaucratic processes before issuing any credit to purchase home appliances. You may have to wait several weeks before receiving approval for the credit card or loan application. Additional documentation is also required for traditional financiers as compared to bad credit financing options.
4. Rebuild Your Credit Score
Another benefit is that the monthly payments you pay are credited towards the purchase. Honoring your lease purchase agreement helps in rebuilding credit. The regular payments can be filed with credit reporting agencies, stacking up your credit scores, improving your ratings. The discipline developed over the leasing period may set you up to attain fantastic credit scores.
5. Budget-Friendly Payment Option
Bad credit financing involves negotiating the final price for a home appliance before applying for a lease purchase program. The final contract agreement includes the agreed terms, outlining the amount of money you are approved for. Most programs provide budget-friendly options with low monthly payments spread across a specified period. Additionally, the provider may not ask for any money upfront, except for the processing fees.
Lease purchase programs act as excellent bad credit financing options that enable consumers with poor credit history to take home their favorite home appliances. Are you looking to discuss your leasing options with a reputable provider? Contact Okinus today for more information on bad credit financing.