Renting furniture and appliances from Aarons can be a convenient and affordable option for individuals who cannot afford to purchase these items outright or prefer the flexibility of renting. However, many potential customers are concerned about the impact of credit checks on their credit scores and the overall rental process. In this article, we will delve into the details of Aarons’ credit check policy, the rental process, and the financial implications of renting from Aarons.
Introduction to Aarons and Its Rental Process
Aarons is a leading retailer of furniture, appliances, and electronics, offering a rent-to-own option for customers who want to acquire these items without committing to a purchase. The company operates over 1,900 stores across the United States and Canada, providing a wide range of products from top brands. Aarons’ rental process is designed to be straightforward and customer-friendly, with a focus on providing flexible payment options and excellent customer service.
Understanding the Rental Agreement
When you rent from Aarons, you enter into a rental agreement that outlines the terms and conditions of the rental, including the monthly payment, rental period, and any applicable fees. The rental agreement is a contract between you and Aarons, and it is essential to read and understand the terms before signing. The rental agreement will specify the length of the rental period, which can range from 12 to 24 months, depending on the product and the customer’s preferences.
Credit Checks and the Rental Process
So, does Aarons do credit checks? The answer is yes, but with some caveats. Aarons may perform a credit check as part of the rental application process, but this is not always the case. The company’s credit check policy varies depending on the location and the specific product being rented. In some cases, Aarons may use alternative methods to evaluate creditworthiness, such as income verification or employment history. This means that even if you have poor credit, you may still be eligible to rent from Aarons.
The Credit Check Process
If Aarons does perform a credit check, it will typically involve a soft inquiry on your credit report. A soft inquiry does not affect your credit score and is only visible to you when you check your credit report. The credit check is used to assess your creditworthiness and determine the likelihood of you making timely payments. Aarons may use information from the credit check to determine the monthly payment amount, rental period, and any applicable fees.
Factors That Influence Credit Checks
Several factors can influence whether Aarons performs a credit check, including:
The type of product being rented: Aarons may be more likely to perform a credit check for high-value items, such as furniture or appliances.
The rental period: Longer rental periods may require a credit check to ensure that the customer can make timely payments.
The customer’s location: Credit check policies may vary depending on the location and the specific store.
Alternative Options for Customers with Poor Credit
If you have poor credit, you may still be eligible to rent from Aarons. The company offers alternative options, such as:
Income verification: Aarons may verify your income to determine your ability to make timely payments.
Employment history: Aarons may review your employment history to assess your stability and creditworthiness.
Co-signer: You may be able to rent from Aarons with a co-signer, who will be responsible for making payments if you default.
Financial Implications of Renting from Aarons
Renting from Aarons can have significant financial implications, both positive and negative. On the positive side, renting can provide flexibility and affordability, allowing you to acquire the products you need without committing to a purchase. However, renting can also be more expensive in the long run, as you will be paying monthly payments for an extended period. It is essential to carefully review the rental agreement and understand the terms and conditions before signing.
Calculating the Total Cost of Renting
To calculate the total cost of renting from Aarons, you need to consider the monthly payment, rental period, and any applicable fees. The total cost of renting can be significantly higher than the purchase price of the product, especially for longer rental periods. For example, if you rent a $500 appliance for 24 months at $25 per month, the total cost of renting would be $600, plus any applicable fees.
Comparing Renting to Buying
When deciding whether to rent or buy, it is essential to compare the costs and benefits of each option. Buying may be the better option if you plan to keep the product for an extended period, as you will own the product outright and avoid ongoing monthly payments. However, renting can provide flexibility and affordability, allowing you to acquire the products you need without committing to a purchase.
Conclusion
In conclusion, Aarons may perform a credit check as part of the rental application process, but this is not always the case. The company’s credit check policy varies depending on the location and the specific product being rented. Even if you have poor credit, you may still be eligible to rent from Aarons, as the company offers alternative options, such as income verification and employment history. It is essential to carefully review the rental agreement and understand the terms and conditions before signing, as renting can have significant financial implications. By understanding the rental process and financial implications, you can make an informed decision about whether renting from Aarons is right for you.
- Consider the total cost of renting, including the monthly payment, rental period, and any applicable fees.
- Compare the costs and benefits of renting to buying, and choose the option that best suits your needs and budget.
By following these tips and understanding the rental process and financial implications, you can make the most of your rental experience with Aarons and acquire the products you need without breaking the bank.
Does Aaron’s conduct credit checks for rental applications?
Aaron’s, like many rental companies, does conduct credit checks as part of their application process. This is a standard practice in the industry to assess the creditworthiness of potential customers. The credit check is used to evaluate the applicant’s history of paying bills on time, their outstanding debt, and other financial factors that may impact their ability to make payments. By reviewing an applicant’s credit report, Aaron’s can determine the level of risk associated with approving their rental application.
The credit check process typically involves a soft inquiry, which does not affect the applicant’s credit score. However, if the application is approved and the applicant decides to proceed with the rental agreement, a hard inquiry may be performed. This can temporarily lower the credit score, but it is a necessary step in the process. It’s worth noting that Aaron’s also considers other factors, such as income and rental history, when evaluating applications. So, even if an applicant has a less-than-perfect credit score, they may still be approved for a rental agreement if they meet other requirements.
What information do I need to provide for a credit check at Aaron’s?
To complete a credit check at Aaron’s, applicants will need to provide some personal and financial information. This typically includes their name, address, date of birth, social security number, and income details. Aaron’s may also request information about the applicant’s rental history, such as their current and previous addresses, and their employment status. Additionally, applicants may need to provide proof of income, such as pay stubs or tax returns, to verify their financial situation.
The information provided is used to obtain a credit report from one of the major credit bureaus, such as Equifax, Experian, or TransUnion. The credit report contains a detailed record of the applicant’s credit history, including their payment history, account balances, and any derogatory marks. Aaron’s uses this information to evaluate the applicant’s creditworthiness and determine the terms of the rental agreement, including the monthly payment amount and any required deposits. By providing accurate and complete information, applicants can help ensure a smooth and efficient application process.
Can I rent from Aaron’s with bad credit?
Having bad credit does not necessarily mean that an applicant will be denied a rental agreement at Aaron’s. While a good credit score can improve the chances of approval, Aaron’s considers a range of factors when evaluating applications. This includes income, rental history, and other financial information. If an applicant has a low credit score, they may still be approved for a rental agreement, but they may be required to pay a higher deposit or have a co-signer.
In some cases, Aaron’s may offer alternative options for applicants with bad credit, such as a higher monthly payment or a shorter rental term. Additionally, applicants can take steps to improve their credit score before applying, such as paying off outstanding debts or disputing errors on their credit report. By taking these steps, applicants can increase their chances of approval and secure a rental agreement that meets their needs and budget. It’s also worth noting that Aaron’s may have different approval criteria for different types of products or rental agreements, so it’s worth discussing options with a representative.
How long does the credit check process take at Aaron’s?
The credit check process at Aaron’s is typically quick and efficient, with most applications being processed within a few minutes. However, the exact timeframe may vary depending on the complexity of the application and the speed of the credit bureau’s response. In some cases, additional verification may be required, which can delay the process. But in general, applicants can expect to receive a decision on their rental application within a short period of time.
Once the credit check is complete, Aaron’s will review the results and make a decision on the application. If approved, the applicant will be notified of the terms of the rental agreement, including the monthly payment amount, deposit requirements, and rental term. The applicant can then review and sign the agreement, and arrange for delivery or pickup of the rented items. Throughout the process, Aaron’s representatives are available to answer questions and provide guidance, ensuring a smooth and hassle-free experience for applicants.
Will a credit check from Aaron’s affect my credit score?
A credit check from Aaron’s can have a minimal impact on an applicant’s credit score, but this depends on the type of inquiry and the applicant’s overall credit profile. As mentioned earlier, Aaron’s typically performs a soft inquiry, which does not affect the credit score. However, if the application is approved and the applicant proceeds with the rental agreement, a hard inquiry may be performed, which can temporarily lower the credit score.
The impact of a hard inquiry on an applicant’s credit score is usually small and short-term. According to the credit scoring models, a single hard inquiry can lower the credit score by 5-10 points, but this effect typically fades within a few months. Additionally, credit scoring models are designed to account for multiple inquiries within a short period, such as when an applicant is shopping for credit or loans. By making on-time payments and maintaining a healthy credit profile, applicants can minimize the impact of a credit check from Aaron’s and maintain a strong credit score over time.
Can I get pre-approved for a rental agreement at Aaron’s?
Yes, Aaron’s offers a pre-approval process for rental agreements. Applicants can visit the Aaron’s website or store and apply for pre-approval, which involves providing some basic financial and personal information. The pre-approval process typically takes a few minutes, and if approved, the applicant will receive a pre-approval certificate or email with the details of their approval, including the approved amount and any conditions.
The pre-approval certificate is usually valid for a limited time, such as 30 days, and can be used to rent a specific product or group of products. By getting pre-approved, applicants can shop with confidence, knowing that they have been approved for a rental agreement and can focus on selecting the products they need. Additionally, pre-approval can simplify the rental process, as the applicant’s credit information has already been verified, and they can proceed with the rental agreement without further delays. Aaron’s representatives can provide more information on the pre-approval process and help applicants get started.