Getting approved for a television financed with bad credit can be challenging, but it’s certainly not impossible. Several options exist, each with its own set of considerations.
Rent-to-Own (RTO) Agreements: These are arguably the most accessible route for those with poor credit. RTO companies like Aaron’s and Rent-A-Center don’t typically perform credit checks. Instead, you make regular payments (usually weekly or monthly) over a set period. Once you’ve fulfilled the payment schedule, you own the TV. The downside? RTO agreements are significantly more expensive than buying the TV outright, or even financing it through a traditional lender. The total cost, including interest and fees, can be two or three times the retail price. Late fees are also common, adding to the overall burden.
Buy Now, Pay Later (BNPL) Services: Platforms like Klarna, Affirm, and Afterpay are becoming increasingly popular. While some do perform soft credit checks that won’t impact your credit score, others require little to no credit history. These services allow you to split the purchase price into smaller, more manageable installments, often interest-free if paid on time. However, missing payments can result in late fees and potentially damage your credit score if the BNPL provider reports to credit bureaus. The TV’s price is often slightly inflated compared to buying it outright, though less so than RTO options. BNPL options usually have credit limits, so ensure the TV’s price falls within your approved spending limit.
Retailer Financing (Store Credit Cards): Some electronics stores offer their own credit cards, often with easier approval criteria than traditional credit cards. These cards typically come with higher interest rates, so aim to pay off the balance quickly to avoid accruing significant interest charges. Look for introductory offers like 0% APR for a limited time, but be aware of the standard APR after the promotional period ends. Failure to make timely payments will negatively affect your credit score.
Secured Credit Cards: While not directly financing the TV, a secured credit card can help you rebuild your credit. You deposit a certain amount as collateral, which becomes your credit limit. Use the card responsibly to purchase everyday items (including the TV) and pay off the balance each month. Over time, this positive payment history can improve your credit score, eventually allowing you to qualify for better financing options.
Consider Alternatives: Before committing to financing, explore alternatives. Could you save up the money over a few months? Are there used or refurbished TVs available at a lower price? Are there any community programs that provide assistance with essential household items?
Important Considerations: Always read the fine print of any financing agreement carefully. Understand the total cost, interest rates, fees, and payment schedule. Prioritize making timely payments to avoid late fees and damage to your credit score. Focus on improving your credit score over time to access more favorable financing options in the future.