Will using rent-a-center or some other rent to own place help to rebuild credit?

Answer 1

Yes, if you are renting to own something then you are building a record of payments with a continuing history, for the period of the contract; so you are building a credit history. If you make all your payments on time then it is a good record.

If you are just renting an item then you are not helping your credit, because the contract ends when you stop making payments. Their is no continuing history, or an obligation to make future payments.

Credit companies are looking for an intent to make a commitment with a history that requires future payments. They are not as interested in a contract that can be broken as easily as a rent contract. It doesn't show intent to make future payments.

So to rebuild your credit history you want to make a contract that shows an intent to make future payments, and these payments are required to get the goods or service that you are acquiring. If you can just stop the contract at anytime then it doesn't show a intent to make future payments. That's why it is called a credit history.

You may have to see that your payment history is reported to the credit managing companies before it enters on your credit report. If you don't then it will could only improve your credit rating with the rent-to-own company.

You can contact the three credit reporting compaines to give them information to correct or add to your credit history. Remember that by federal law, a person is entitled to one free credit report per year.

- Equifax: 1-800-525-6285 www.equifax.com
P.O. Box 740241, Atlanta, GA 30374-0241
- Experian: 1-888-397-3742 www.experian.com
P.O. Box 9532, Allen, Texas 75013
- Trans Union: 1-800-680-7289 www.transunion.com
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

Answer 2

Most of the time they do not report to credit bureaus and will not help rebuild your credit. You are better off opening a credit card with a company that accepts borrowers with little or no, bad credit, etc. That way you can rebuild credit by purchasing the furniture at a real store. Just be sure to pay the monthly payments on time. One thing to note: paying poorly to a furniture rent-a-center WILL HURT your credit since these companies (like almost all other companies) do report collection action to credit bureaus. Doesn't seem fair, but that is how it goes.

Answer 3

Actually, this is an excellent question. The company that created the most commonly cited credit score (FICO) is Fair Isaac. (that's the name, don't ask...)

Fair Isaac has been struggling with the question of how to "rate" the more than 50 million Americans who don't have a traditional credit score. When merchants contact Fair Isaac about the credit applicants that don't show up in the Fair Isaac database, Fair Isaac can't advise them, and they're not making any money from the transaction - so.....

Fair Isaac has created an all new credit "score". It's not going to replace the FICO by any stretch of the imagination, but the company intends to introduce it as a supplement (or substitute) for customers who don't have traditional scores. What remains to be seen, of course, is whether merchants are going to accept these alternative scores as meaningful.

The new Fair Isaac "FICO Expansion" score will be based on reports from rent-to-own centers, payday lenders, companies that track bounced checks. The key here, as far as your question, is that these "sources" have not traditionally reported to the big credit bureaus.

So...long story short - if you're looking to establish credit with a merchant or lender who will accept Fair Isaac's new "FICO Expansion" score in their underwriting, a relationship with a rent-to-own might help your cause. Traditionally, however, rent-to-owns will not contribute to the standard FICO that most creditors use to make their lending determinations, no matter how well you've handled your rent-to-own responsibilities.

Answer 4

No. Plus they are such a rip off. Talk to some credit card companies. Try to get a card with whatever limit they will allow. Charge a reasonable amount every month and pay it off immediately. Do this for about 6 consecutive months and you should see a difference.

Answer 5

Yes. Just be sure that you make every scheduled payment on time or be prepared to pay even more and wait longer for a better credit.

Answer 6

only if they report to the 3 credit bureaus. I have looked at thousands of reports and never see them listed! So NO in most cases.

Answer 7

No, my sister has bought numerous items from a rental place and it does not show up on your credit report if its good credit.

Answer 8

Rent To Own Home - http://RentToOwnHome.uzaev.com/?wVpG

Answer 9

No they will just rip you off. Just use cash, make payments on time, and forget about credit. In time your credit will get better.

Answer 10

nope....they don't report to the credit bureaus.