Rent-to-Own Expensive Items with Bad Credit

Rent-to-Own Expensive Items with Bad Credit

Written by Caitlin Wood
Last Updated December 8, 2021

Having credit issues at some point in your life is not an uncommon thing for the average Canadian, so what happens when your credit is less than great but you still need a new fridge, washer and dryer or T.V? Renting to own is an option that most people have probably never heard of and while it may not be as popular as charging a new purchase to a credit card, it’s still one of the best options for all credit constrained individuals.

Generally speaking no credit check will be performed and you’ll still have just as many options as you would if you had gone to a big box retail store. You’ll choose from a wide variety of items until you find one that suites your needs and it will be delivered straight to your door after you make your first payment.

Check out this analysis and video of renting to own a new purchase.

The Process

The process of renting to own is just as easy as purchasing the item but you don’t need a large credit card limit or great credit score. One of the best things about renting to own is that once you’ve finished making all your payments you’ll own the item. Here’s what to expect when you rent-to-own:

  • Choose the best lender for your situation
  • Speak with a sales representative to discuss your options
  • Choose the item(s) you want to rent-to-own
  • Sign an agreement or contract
  • Make the first payment and receive your item(s)
  • Make weekly, biweekly, or monthly payments
  • Take ownership of your item(s) once you’ve made the last payment

To get approved you’ll typically need proof of address, proof of employment and often a few references.

Is There a Credit Check?

So the big question is, is there a credit check and will you get approved if you have bad or no credit? The great news is that generally speaking most rent-to-own retailers do not perform credit checks which means that if you have bad credit you’ll still be able to get the items you want and need. Instead of performing credit checks:

  • You’ll be asked to prove your address with a utility bill
  • You’ll be required to provide a few references, typically from friends or colleagues
  • You’ll be asked about your current income and past employment history

The most important part of the process is proving that you have the ability to make your payments on time and in full every payment cycle.

Maintaining Your End of the Deal

When you rent-to-own an item you’ll sign a contract that details all the responsibilities of both the retailer and you. There are a few responsibilities that you should expect to maintain on your end:

  • To prevent any intentional damage
  • To make your payments on time
  • To contact your retailer should you be unable to make your payments on time
  • To contact your retailer if your item has been accidentally damaged by a fire, a power surge or is stolen.

Keep in mind that most rent-to-own retailers should offer an insurance plan; this will cover all issues that deal with damage and or theft.

Using Rent-to-Own to Build Your Credit

When you rent-to-own an item it’s considered a line of credit that you’re using to purchase something. This is a great way to build up your credit. If you make your payments on time every payment cycle then you’ll be working towards improve your overall credit health and credit score. Just beware that not all rent-to-own retailers report to the credit bureaus, so if you’re specifically looking to improve your credit with a rent-to-own deal make sure you find out before you make your final decision.

Get Set up with a Retailer Today

If you’re considering your next big purchase and are concern about how you’re going to pay for it you should look into renting to own. You’ll be able to get the item(s) you want without dealing with a credit check and you’ll only be required to make easy to afford and handle weekly, biweekly, or monthly payments. Whether you want to know about rent-to-own programs in Ontario or elsewhere in Canada, contact us today and we’ll set you up with a retailer in your area.


Rating of 3/5 based on 2 votes.

Caitlin is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security. One of the main ways she’s built good financial habits is by budgeting and tracking her spending through the YNAB budgeting app. She also automates her savings so she never forgets to put aside a portion of her income into her TFSA. She believes investing and passive income is key to earning financial freedom. She also uses her Aeroplan TD credit card to collect Aeroplan points so that she can save money when she travels.

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