What to Expect in a Rent-to-Own Agreement

Rent-to-own options make it possible for you to furnish your home with essential furniture and appliances without paying high upfront costs or credit card interest rates. Before you lease to purchase appliances in Mississippi, make sure you understand what to expect from your contract agreement. A little knowledge will help you follow expectations so you get your items at the best price.

What Does a Rent-to-Own Contract Agreement Cover?

A rent-to-own agreement gives you a chance to spread payments out over time (often up to 24 months). Typically, you will need to sign a rent-to-own contract agreement that defines every aspect of the transaction.

Information You Need to Complete Your Rent-to-Own Application

When you fill out a rent-to-own application, expect to provide information such as:

-Your name, contact information, date of birth, Social Security number, and driver’s licence number.

-The name and contact information of your employer.

-The amount of money you take home per month and how frequently you get paid.

-Personal or professional references.

Your application will help the rent-to-own business determine whether you have the financial ability to fulfill your contract agreement. Expect them to check your credit history and rating so they can make an informed decision.

Sections in Rent-to-Own Contract Agreements

The sections in your rent-to-own contract agreement should explain everything both you and the business need to understand about the expectations of your arrangement. You can expect to find sections that cover topics like:

-The payment amounts and payment deadlines.

-The total amount you will spend buying the item.

-Whether you have a grace period for payments (and the length of the grace period)

-Which party pays to repair or replace the item if it malfunctions.

-Whether the business charges a prepayment penalty.

-The penalty for late payments (e.g., late fees or repossession).

-The date that you will complete the agreement and own the item.

For example, a contract agreement might specify that Ms. X will pay $96 per month to Rapid Rentals for 24 months to own a Samsung Crystal UHD Smart TV, and that ownership will transfer to Ms. X when the last payment is made. The buyer will make payments by the first day of each month, with a three-day grace period. The total purchase price will equal $2,304. Payments over 30 days late will cause repossession.

Terms You Should Understand Before Signing an Agreement

Some terms you might know before you enter a rent-to-own agreement include:

-Prepayment penalty—an amount of money that you pay the business when you want to complete the rent-to-own contract earlier than agreed.

-Repossession—repossession can mean more than the business taking back the item you rent. It can also include repossession fees and credit reporting that harms your credit history.

-Processing fee—a fee that you pay for the business to process your paperwork.

-Early purchase option—the opportunity to complete your contract and gain ownership of an item, usually at a lower rate and without paying penalties.

Tips for Following Your Contract Agreement

As long as you follow your contract agreement, you should have a simple, straightforward experience when you rent to own in Mississippi. Keep the process as simple as possible by:

-Always paying the owner on time (setting up automatic payments through your bank can help).

-Reporting any damage or malfunctions to the owner.

-Updating your contact information if it changes.

Contact Rapid Rentals for Rent to Own in Mississippi

Rapid Rentals has several locations in Mississippi that give you access to furniture, appliances, and electronics at low monthly rates. Contact a location near you for more information.