Buying on credit question

Discussion in 'The Watercooler' started by klmno, Apr 28, 2012.

  1. klmno

    klmno New Member

    Hey, Ladies! I'm ready to start trying to build up my credit score again and was wondering if I rent to own a washer & dryer, does it help my credit score? Is it actually better to try to buy one on credit rather than rent to own one? IOW- which one costs me less in the long run since I noticed that the places who let you finance a washer & dryer have their prices way too high?
     
  2. witzend

    witzend Well-Known Member

    I would buy on credit - even if it is at a high interest rate - before I would rent. Those rent to own places are vultures. You'll pay 5 times the price by the time you've paid it off, and if you miss so much as a payment by a day they will re-possess and/or charge outrageous fees.

    Do the purchase, then if you come into some money you could pay it off early. You can also pay a little extra each time - even $5 helps. But don't do a rent to own. They'll use you up. They make it sound great "Only $20 a week!" That's $80 a month you'll be paying for years.
     
  3. keista

    keista New Member

    Ditto Witzend.

    To directly answer your question - NO those rent to own places to NOT help improve your credit score. They will tell you they do, but they don't. HOWEVER if you miss a payment and they do a repo on you, they will report that negative info to the credit bureaus.

    Like Witz said, even if the credit card you get has outrageous interest rate, it will still be cheaper than the rent-to-own places.

    Best place to try and get a card to start off is the store you're gonna buy at - Sear, Home Depot, Lowes. Most do a zero interest promo for 6-12 months on larger purchases, so if you pay it off in that time, the interest rate doesn't matter at all. Next stop is a credit union. If your credit is really bad or nonexistant, you might have to do a secured card. Just make sure it's a real secured card. I saw a commercial today for those prepaid visas (the ones you can get at WalMart) and they were calling it a secured visa NOT NOT NOT. those won't help you build credit either.
     
  4. donna723

    donna723 Well-Known Member

    Ditto what they said! Those "rent to own" places are a huge rip-off! You will end up literally paying two or three times what the item is worth by the time you're done paying for it. You might try a small loan company, NOT one of the payday advance places but a regular loan company. I've been trying to rebuild my credit too, and when my old desktop computer died I went to a loan company and borrowed $900. Had a little payment book and everything. The rate was high because of my awful credit and I ended up paying $300 in interest over the year I made payments. But now it's on record that I made every payment on time and paid the whole thing off on schedule.
     
  5. slsh

    slsh member since 1999

    Another ditto. If you figure out what you'll pay for washer and dryer on rent-to-own program, I would not be surprised to see it come out to 3 times their worth, easy. Definitely, buying on a credit program would be better, especially if you can pay off early.
     
  6. DDD

    DDD Well-Known Member

    Another NO to rent to own. If you can get credit from an established company and you know you can afford it go for it. Otoh if you have maxed out with the transition to at home parenting....go to a laundramat and use the quarters needed to get the clothes washed and dried. I totally understand that you have had to "downsize" your lifestyle in recent years but it is far better for GFG to see the example of using a laundrymat than it is trying to stretch to the limit of your means. He will be observing everything you do as an example for the future. Living within your means and "going without" are important lessons. They are difficult lessons when you have had financial cushions in the past but I have btdt. I had to sell my home to provide education for GFGmom. You had to sell your home due to GFG issues. In my heart I "know" what you are dealing with. Btw, lol, my older children are fiftish and debt free, have serious programs for retirement and never "charge". Yep, it's because they saw me struggle. Hugs DDD
     
  7. MidwestMom

    MidwestMom Well-Known Member

    We went backrupt about two years ago and hub got a credit card in which he has to have a certain amount of money in the bank and then he can use the card. By using the card every month and paying it off every month, his credit line was raised, and his credit score is already up to 660. This is the best way to get your credit back on track. I would NEVER use those rent-to-own places. EVER. They rob you, plain and simple.
     
  8. klmno

    klmno New Member

    Good point, MWM! Thank you! Thank you all for the advice!

    DDD, we're fine as far as meeting needs financially (food, bills, etc) but things are tight trying to cover costs of car needs and things we want- that forum and clothes for it, etc. I had taken my clothes to the laundromat then realized they only charge $1/pound to wash, fluff, and fold or hang them up so I started doing that. That worked fine when it was just my light-weight clothes for work plus a pair of jeans and a couple of towels. It saved me a lot more at home b/c I didn't have to buy laundry detergent and my electric and water bills went wayyyyy down. With E home and having bigger, heavier clothes, it's costing more like $25 per week so I'm thinking it's not so cost effective anymore. It has helped this past week though b/c I've been more than slammed for time.

    Now that I need to think about credit score improving and getting a W/D in the house but still having a balloon payment due in a few weeks for him to go to this forum, I thought I could use the W/D to improve credit and make payments, then maybe do the same thing for living room tables (which is all that's left needed as far as primary furniture), then the next goal would be a car toward the end of this year.

    I hadn't thought about getting a CC and using that for the W/D but that would be best b/c it does more for raising creadit scores (I think) plus that would allow me to buy a scratch and dent set or used set, which would even be more cost effective.

    I was able to buy E a new queen mattress set, bed frame, bed linens, pillows, & comforter, shelves for clothes (they are in 1/2 of his large closet), a desk, chair, night table, a small stand with shelf & cabinet for a small tv I had saved, some clothes & shoes, school supplies (not much was needed) and pay school fees for about $1000 so that went well. I knew it was coming so had prepared for that.

    He's being great as far as helping to keep costs low- which is tons different than how he used to be. He's eating one regular lunch at school instead of 2 every day, even though he's always had breakfast, dinner, and snacks available at home. He's helping to make sure no food bought goes to waste and isn't asking for everything under the sun at the store. He's been so good I'm afraid to jinx it, honestly. We've even had an arguement and survived it without going anywhere close to crisis mode. No matter what might happen in the future, I thank God I have had every one of these days with my son. I guess all that is OT but just wanted to express it.
     
  9. DammitJanet

    DammitJanet Moderator Staff Member

    You know K...some of those things you need you can look for on freecycle. I am sure you can find some of his bedroom furniture on there. Yes it wont be new but it will save money. Or craigslist. I actually have one of those metal bedframes that a mattress sits on that fits anywhere from a queen to a full just sitting in my junk room. Too bad you cant come get it...lol. He could make a head board like I see on TV with wood and foam batting.

    I am going to try to get my credit score built up with a secured card too.
     
  10. skeeter

    skeeter New Member

    Another vote for a bank secured card. My son is currently doing this - because of his age they wanted a co-signer for a regular credit card and we have a VERY firm policy on no co-signing. Ever.
    My other son started by buying a very cheap car that he could have paid cash for, but taking out a loan instead. I did the same thing when I was his age. For both of us, it meant that when we went to purchase our first home, we already had established credit and had no issues getting a mortgage.
     
  11. klmno

    klmno New Member

    I wish I'd known that DJ- I just spent $50 at Wally world for a bed frame for him! I could have sent yoou shipping cost plus some extra for your trouble to mail them to me since it's not feasible for me to come get them right now- he's on house arrest with EM for 3 weeks-30 days.
     
  12. DDD

    DDD Well-Known Member

    Sounds like you're doing great and the basics are taken care of for now. I sound a bit like a commercial for Habitat, lol, but that is where the quality recycles are found around here. They have a "team" that checks, cleans and repairs all that is donated. Just for future reference the bedframes are $15, small tables are usually around ten and I know alot of people who have bought w/d's there for well under $100. When you think about it the values make sense. People who buy new furtniture and appliances to replace their aok ones do not want the hassle of moving the old.
    They also don't want strangers coming to their homes. One phone call and they have "safe" people pick up what they no longer want or need, they get an instant tax writeoff and they feel good about helping others. Plus you and your son might enjoy the outing on a Saturday. You just never know what you'll find for next to nothing. DDD
     
  13. klmno

    klmno New Member

    I don't know if we have that around here or not but I'll see if I can find out. Thanks for the ideas! We're house cleaning today and I have to work to make up some time for my job. Then, it's cooking on the grill and maybe watching a movie.
     
  14. DammitJanet

    DammitJanet Moderator Staff Member

    Habitat is great. I have to go up to Fayetteville to get to one but they do have some finds. I keep watching in there for a bathtub I want. Last time I was there they had a whirlpool with all the stuff but I am looking for one of those walk in bathtubs. I know its a long shot that I will find one there but you never know.
     
  15. AnnieO

    AnnieO Well-Known Member

    K - rent to own is a terrible thing to do to anyone.

    Now - 0% finance for 90 days or a year? Awesome, go for it. BUT - the laundromat might actually be a great lesson for GFG... Including how to properly fold his own laundry, KWIM?

    Freecycle is awesome, esp in the general area where you are - military people are always moving & need to sell their stuff...
     
  16. klmno

    klmno New Member

    TY all again. He had to do laundry for a period of time in djj and already knows how to do his own personal clothes plus do everyone else's towels and uniforms and underwear and fold them. He doesn't need this for a life skill. Right now he's learning to live like a starving (not really starving- just not having luxury) college student and I'm just worried about covering costs for things I have deemed important and still trying to start building credit back up.
     
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