When you want big-ticket items like TVs, mattresses, and more, plopping down a huge amount of cash can be a strain on your finances. It’s especially difficult to buy these types of goods when you don’t have a credit card or you have bad credit. FlexShopper and similar lease-to-own companies make it easy to buy electronics, furnishings, and other items when you don’t have the cash to purchase items outright and/or your credit score has seen better days. Find out how FlexShopper and its competitors work below so you can decide the best place to shop.
How FlexShopper Works
FlexShopper is a shopping site that gives customers an opportunity to purchase name-brand products on a lease-to-own basis. Instead of paying for items up front or on credit, you can make small payments for an extended period of time. It’s not layaway, though, as you can enjoy your purchases while you pay them off. After completing all payments, you own the item outright.
Applying for a FlexShopper Account
The FlexShopper online application involves providing basic personal details and financial information. The form is protected by bank-level security software, and your personal information is never shared with third parties, according to FlexShopper.
While you don’t need to have a good credit score to apply, and you don’t need to own a credit card, you do have to show that you are gainfully employed. Additionally, you need to show that you have a valid checking account that’s in good standing. Once you meet these two mandatory requirements, approval is fairly quick. After approval of your application, a spending limit decision is produced in mere seconds. That means you can start shopping right away. FlexShopper offers spending limits of up to $2,500.
Does FlexShopper Do a Credit Check?
Yes, FlexShopper will check your credit. Expect to have a credit report pulled from FactorTrust, Inc. and/or Clarity Services, Inc. Major nationwide credit reporting agencies (Experian, Equifax, and TransUnion) are not involved in this credit check. FlexShopper doesn’t reveal how much of a role this information plays in approving memberships. While your odds of being approved are good, there are no guarantees, and your application may be declined due to bad credit. In fact, the company states that not everyone with bad credit is approved.
Also, be aware that missed or lapsed payments and failure to return leased goods can negatively impact your FICO score. Treat your FlexShopper lease agreement like any other credit agreement. Making timely payments and following leasing policies can help improve your credit.
How Does FlexShopper Leasing Work?
FlexShopper uses a product leasing model, and when you choose an item to buy, you are entering into a leasing agreement between you and the company. In return for being allowed to use the item at home, you agree to pay FlexShopper a certain amount of money every week or every other week during the leasing term. The leasing term includes an initial leasing period of seven to 29 days (varies by state). During this period, you have the option of returning the item in good condition, effectively ending the lease.
After the initial lease period ends, the lease continues for 52 weeks. At the end of 52 weeks, you own the item (provided all payments were paid on time).
You can also end the lease early by choosing the Early Purchase Option. To purchase an item early, go to your lease agreement and find the early option table. This table reveals the amount of money you need to pay to complete the purchase ahead of schedule. Find more information on the FlexShopper FAQs page.
What Does Cash Price and 90 Days Same as Cash Mean?
Cash price equals the retail price you must pay in order to own a leased item. This price is usually $50 or more over the price listed by merchants selling the item without a leasing agreement. FlexShopper reduces the cash price amount by $50 for each additional item you order when renting multiple items at once. Multiple item orders do increase rental costs; however, this option is cheaper than purchasing items separately.
Instead of committing to a long lease term, you can take advantage of the 90 days same as cash option. This involves paying off the entire amount you owe for one or more items (including sales taxes) within a 90-day period. You own the item(s) free and clear and there are no further financial obligations.
What Is the FlexShopper Personal Shopper?
Sometimes you have your heart set on a certain item that you don’t see anywhere on the FlexShopper site. When this happens, you can use the FlexShopper Personal Shopper to order items from alternative merchant sites. FlexShopper works with merchants such as Amazon, Best Buy, Dick’s Sporting Goods, and Overstock.com. Simply browse your favorite shopping site, select items you want to rent, and select shipping or store pick-up options. You’ll pay for these goods using your FlexShopper leasing plan.
Making Payments and Late Payment Penalties
Payment amounts are included in product listings, and fees and taxes are added to the final payment amount. Once you hit the order button, you’ll be expected to make all payments on time.
Penalties for late payments are not specified on the FlexShopper website. However, if you know you’re going to pay late, or you’re struggling to make an upcoming payment, contact the customer service department and let them know the situation. Being proactive may help you avoid negatively impacting your account.
Here’s an overview of FlexShopper to allow you to easily compare its features to those of its competitors:
- Products: Electronics, home decor, health and fitness, baby items, houseware products, home and garden, and more
- Credit check? Yes. Expect to have a credit report pulled from FactorTrust, Inc. and/or Clarity Services, Inc.
- Approval qualifications: Proof of regular employment; must have an active checking account
- Purchase terms: Initial lease term of between seven to 29 days (varies depending on the state), then a lease term of 52 weeks.
- Spending limit: Up to $2,500
- Payments: Payments automatically deducted from a checking account
- Early purchase policy: Yes, available on all purchases; 90 days same-as-cash option also available
- Perks: FlexShopper Personal Shopper allows you to purchase items from other big-name sites using your FlexShopper credit.
The Sites Similar to FlexShopper
- Products: Electronics, clothing, health and beauty, appliances, home furnishings, home decor, pet supplies, toys, jewelry, and more
- Credit check? Yes; credit reports are pulled from WeBank.
- Approval qualifications: Name, address, date of birth, Social Security number, and other personal identifying information; application requirements vary by state.
- Purchase terms: Monthly payment plan
- Spending Limit: Credit limit may be increased after a periodic review of the account.
- Payments: Minimum payments are made by a specified due date. Available credit updates the same day payments are made to the account when paid before 4 p.m. CST. Payments made after this time will update the following day.
- Early purchase policy: Items can be paid off early any time, without penalty.
- Perks: Build up your credit; low monthly payments; deferred payment offers available to eligible customers
- Products: Computers, digital devices, gaming systems, appliances, exercise equipment, and more
- Credit check? Not with the major credit bureaus; however, they may check through an alternative credit agency.
- Approval qualifications: Must have earned a minimum of $1,200 per month for at least six months; must have an active checking account in good standing (non-prepaid); must provide contact information, Social Security number, date of birth, banking information, and employment information
- Note: Lease application appears during order checkout.
- Purchase terms: Lease approval is valid for 30 days; another application must be submitted for orders extending over the 30-day period. The lease period is up to 12 months making 26 bi-weekly payments. Early buyout saves up to 50%.
- Spending limit: Varies; up to $3,500
- Payments: Initial payment is due after an order is received. Payments can be made anytime by logging into an online account.
- Early purchase policy: Buy out in the 1st 100 days and pay the same as cash. Buy out early any time after 100 days and save up to 50%.
- Perks: Receive goods without making a down payment.
- Products: Electronics, computers, home appliances, home furnishings, handbags, gaming systems, and more
- Credit check? No
- Approval qualifications: The age requirement is 18+. Applicants must be gainfully employed or have a regular source of income, have a valid email, and own a credit or debit card.
- Purchase terms: 12-month lease term; products can be returned after the initial one-month lease period.
- Spending limit: Up to $2,500; one rental product purchase per customer per household allowed (multiple products cannot be ordered at the same time)
- Payments: Payments are automatically deducted from a credit card or debit card, according to the lease payment schedule.
- Early purchase policy: Early payoff amounts vary by state. Contact customer service for a no-obligation quote.
- Perks: No long-term commitment; no interest charges
QVC Easy Pay
- Products: Electronics, home decor, kitchen gadgets, food, jewelry, clothing, health and beauty items, and more
- Credit check? May obtain a consumer report through a credit reporting agency
- Approval qualifications: Customers must be approved for a QCard or own a major credit card to pass an installment payment review.
- Purchase terms: Installment payments are based on the item price, taxes, and shipping costs.
- Spending limit: Not specified; customer service was also unable to verify this.
- Payments: Payments are billed about every 30 days to the QCard, credit card, or Paypal account used to make the purchase. The billing date is determined by the shipping date.
- Early purchase policy: You can make advance payments or pay off what you owe at any time.
- Perks: Take advantage of special deals; no extra charges when using a QCard or credit card.
- Products: Electronics, home furnishings, baby items, kitchen appliances, jewelry, game systems, and more
- Credit check? No; however, it does pull from specialty credit reporting agencies to verify identity and employment information.
- Approval qualifications: Customers must be 18+ and verify income and/or employment.
- Purchase terms: Customers receive a no obligation ZebitLine of credit for a specific amount upon registration. Payment schedules are typically six months long, and payment due dates correspond with income source pay periods.
- Spending limit: Varies; increases and decreases over time under review of your repayment habits and other factors
- Payments: An initial payment ranging from 20% to 35% of the total price is made during the order checkout process. Remaining payments are split into equal payments over six months.
- Early purchase policy: You can pay off your balance at any time using the “Review and Make Payment” tab on the dashboard once you’re logged into your account.
- Perks: No interest charges or hidden fees; white glove delivery for large items
Remember, if you are looking to buy electronics, there are plenty of electronics stores that offer buy now, pay later financing for different credit levels. The same goes for appliances; we have a list of 10+ stores that have a rent to own appliances option.