David42 is correct. After the crash, before the credit card explosion and FICO, banks were far more conservative in their lending. Unsecured personal loans weren’t given out except to those who could meet very high requirements. Which was pretty much no regular Joe in those days. So folks who needed it took credit directly from the stores and suppliers. They called these arrangements, “installment payments.” They were risky for both the store and the customer since the store was staking their own cash flow and survival on timely payments. So these arrangements often came with a high “convenience fee.” And a small industry of heavies who went around collecting from the ones who fell behind. The predatory Rent to Own furniture schemes are their descendants. PSA: Never get involved in one. You are better off making due at Goodwill for a few years and just saving the amount of the payments you are offered to spend on quality furniture. You’ll pay less in the end, and the good stuff will last longer than the “lease.”
HappyDog/ᵀʳʸ ᴮᵒᶻᵒ ⁴ ᵗʰᵉ ᶠᵘⁿ ᵒᶠ ᶦᵗ Premium Member about 1 year ago
Two people liked this. Maybe one of them can explain it.
davidf42 about 1 year ago
I think it has to do with paying for things in installments.
prairiedogdance Premium Member about 1 year ago
David42 is correct. After the crash, before the credit card explosion and FICO, banks were far more conservative in their lending. Unsecured personal loans weren’t given out except to those who could meet very high requirements. Which was pretty much no regular Joe in those days. So folks who needed it took credit directly from the stores and suppliers. They called these arrangements, “installment payments.” They were risky for both the store and the customer since the store was staking their own cash flow and survival on timely payments. So these arrangements often came with a high “convenience fee.” And a small industry of heavies who went around collecting from the ones who fell behind. The predatory Rent to Own furniture schemes are their descendants. PSA: Never get involved in one. You are better off making due at Goodwill for a few years and just saving the amount of the payments you are offered to spend on quality furniture. You’ll pay less in the end, and the good stuff will last longer than the “lease.”