Credit beginner/Financing TV...?

Question

Im 18 years old, and have had a Capital One card for about 6 months now...$300 limit. I've made all payments on time, and use it regularly for random purchases here and there. So i'm comfortable with my spending habits, and feel responsible enough to dip my toes a little deeper into the credit lake of death.

I've had my eye on a few Flat Panels and DLP's...and i've had a few friends tell me about their experiences with places like Rent a Center, etc...i obviously cant get a line of credit at a big store like Best Buy or CCity, so what has everyone elses experience been with the Rent to Own chain stores?

Thanks!
Nick

Answer 1

Doing business with a rent to own type of business will definitely place you (as you put it) in the credit lake of death.

Those places typically charge obscenely high interest rates.
Take the cost of the Flat Panel you are looking at and multiply the cost by 3 - that is what you will pay for that TV.

There are many pitfalls with those companies, one of which is if you are late with one single payment they will quickly repo the TV - even if it is the last payment. They don't care since they can easily turn around and resell it.

You would be better off trying to get Cap One to raise your credit limit, try to get a card with Best Buy etc., apply for a loan with your bank or credit union or save your money to pay in cash.

Answer 2

Rent to own stores are WAY overpriced, and they only report to credit bureaus if you stiff them.