Business Upturn Expected in Rent-to-Own Industry

As the economy gets tighter, the rent-to-own industry begins an upturn. Because of rough economic times, all too many people have destroyed their credit. With rent-to-own, credit is often not a factor. Buying anything from furniture to houses rent-to-own is the only way for many people to put their households back in order.

While many see the rent-to-own industry as an aid to the cash-strapped, others accuse the 6.6 billion dollar industry of profiting off the poor.

The Citizens Voice quotes Jarrett Frankevich, sales manager at Aaron’s, a rent-to-own store at 340 S. Washington Ave., Scranton;

“There’s so many different reasons for it. The car breaks down, loss of job, got your hours cut. If we’re not collecting our monthly payment, we’re not making money,” Frankevich said. “The last thing we ever want to do is pick up an account, so there’s lots of different ways we try to work with people. Unfortunately, sometimes you just can’t get it done.”...

Whether you are thinking of purchasing a rent-to-own house or a rent-to-own TV, you should be aware of both arguments. do your homework and make wise, prudent decisions.

GREAT NEWS! Rent-to-Own Payment History Now Included in FICO Score!

Here is some great news for rent-to-own home buyers or anyone contemplating a lease purchase home. Now, with changes to the way one of the "big three" credit reporting agencies records payments, a lease option is not only a good program, it will help improve your credit!

According to the Association of Progressive Rental Organizations, come September, Fair Isaac Corp., will add rent-to-own payment histories as part of its credit scoring formula. This is really big news for rent-to-own home buyers. Pay on time and you could qualify for an even better mortgage rate on your rent-to-own house.

One of the downfalls of a "Lease with Option to Purchase" has been qualifying for a good rate. Generally people that are in a rent to own program are doing so because of bad credit. Now, after a year or two of on-time house payments, their credit score will improve.

Here is part of the article:

Rent-to-own payment histories to be figured in FICO scoring
By APRO staff
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[05-17-2007]

ne of the nation’s most popular credit scoring companies, Fair Isaac Corp., will add rent-to-own payment histories as part of its credit scoring formula beginning in September. FICO has been developing credit scoring systems since the late 1950s and helps rank the credit standings of approximate of 165 million Americans. The company’s new system is designed to improve the accuracy of the credit scoring system to give banks more confidence in lending...