HOW STUFF WORKS
QUIZZES

FOLLOW US
The Ultimate Rent-to-Own Quiz
by Staff
As the American economy continues to decline and more and more people find themselves bankrupt with no savings, rent-to-own stores are becoming more popular. Rent-to-own allows you to purchase big-ticket items, like a refrigerator or computer, regardless of your financial situation. Rent-to-own, however, does come with its own drawbacks.

Who do rent-to-own stores cater to?

  • people who overspend
  • people who don't have credit
  • both of the above

What is rent-to-own?

  • paying for used items on a payment plan
  • paying for new items on a payment plan
  • renting an apartment with the hopes of owning it

How much deposit do you typically need to put down for a rent-to-own item?

  • no deposit
  • 10 percent of the total cost
  • 20 percent of the total cost

How long are people required to make payments on a rent-to-own plan?

  • There are no payment requirements.
  • A minimum of three payments must be made.
  • A minimum of five payments must be made.

What credit rating must you have in order to qualify for a rent-to-own plan?

  • No credit rating is required.
  • A mediocre credit rating is all that is needed.
  • A good credit rating is required.

Besides those with no savings or credit history, who else can benefit from rent-to-own stores?

  • seasonal workers
  • parents who need expensive children's items
  • both of the above

What are other payment options for purchasing big-ticket items?

  • layaway
  • in-store credit
  • both of the above

Which of the following scenarios makes the best financial sense?

  • renting an item for a very short period of time
  • renting an item for a moderate amount of time and then returning it
  • renting an item for a long time leading to purchasing the item

In total, how much more does a rent-to-own item cost compared to buying an item upfront?

  • twice as much
  • three times as much
  • five times as much

Why are rent-to-own stores potentially illegal in the United States?

  • They charge over the legal limit in interest rates.
  • They don't require a credit check.
  • both of the above