Acima Leasing is a flexible alternative to traditional financing that allows consumers to lease items with the option to purchase eventually. It is designed for individuals who may not have access to credit or prefer a more manageable payment plan. By offering a lease-to-own model, Acima enables customers to acquire essential goods, such as furniture, electronics, and appliances, without making an upfront payment. The process is straightforward, requiring minimal paperwork, making it accessible to a wider audience. This review will explore how Acima Leasing works and its advantages and disadvantages.

History and Background of Acima Leasing

Acima Leasing Company was started in 2013 and is located in Sandy, Utah. It started as an online , and lending business that specializes in offering funds to consumers with low credit ratings. In 2016, it moved gear towards offering lease-to-own services to retail merchants. Today Acima partners with over 13,000 partners across the country providing lease to own opportunities for a range of products. It has expanded so much over the years; it is now part of Rent-A-Center Inc., a leading rent-to-own company.

How Does Acima Leasing Work?

Acima's leasing process is relatively simple and can be completed within a few minutes at participating retailers. Customers can start by browsing for products on the retailer's website or in-store and selecting the lease option at checkout. Acima does not require a credit check, making it an attractive option for those with low or no credit scores. Instead, it uses alternative data points, such as income and banking history, to determine eligibility.

Once the payment is approved, customers will make lease payments every two weeks till the final installment of their 90 th day. After this period, they have three options: The options are to return the item, continue leasing it with other agreed payment plans or to own the item by paying for it at a one time agreed price. Should the customers decide to use the product for a period not exceeding 90 days, the total cost essentially is the current market square for the product inclusive of a token start-up fee.

How Acima Leasing differs from traditional financing

Unlike traditional financing, which typically requires a down payment and a fixed monthly payment for a set period, Acima Leasing offers more flexibility. Customers can choose the length of their lease terms, ranging from 12 to 24 months, based on their budget and needs. They also have the option to change their mind or return the item without any penalty within the initial 90-day period.

Eligibility requirements for Acima Leasing

To qualify for an Acima lease, customers must meet the following criteria:

• At least 18 years old
• Have a valid Social Security number or ITIN
• Earn at least $1,000 per month and have a checking account for at least 90 days
• Provide proof of income (e.g., pay stubs, bank statements)

Benefits of Acima Leasing

Acima Leasing offers several benefits to customers, including:

• No credit check: Acima does not require a credit check, making it an ideal option for those with low or no credit scores. Instead, it considers alternative data points, which can provide more opportunities for approval.
• Easy application process: The lease application process is simple and can be completed quickly either online or in-store. It requires minimal paperwork, and customers receive an instant decision on their application.
• Flexible payment options: Acima allows customers to choose from various payment plans that suit their budget and needs. They also have the option to buy out the item at any time during the leasing period without penalty.
• Access to essential goods: Acima enables customers to acquire necessary items, such as furniture and appliances, without making a substantial upfront payment. This can be beneficial for those who cannot afford these items outright or have urgent needs.

Drawbacks of Acima Leasing

While there are several benefits to using Acima Leasing, there are also some potential drawbacks to consider:

• Higher overall cost: Leasing through Acima may end up being more expensive than purchasing the item outright due to additional fees and interest charges.
• Limited product selection: Not all retailers offer lease options through Acima, limiting the products available for lease. This could make it challenging to find specific brands or items.
• Risk of default: Customers who are unable to make timely payments may face late fees and risk having the leased item repossessed.

Alternatives to Acima Leasing

If Acima Leasing does not meet your needs or preferences, there are other options to consider, such as:

• Traditional financing: If you have a good credit score and can afford a down payment, traditional financing may offer lower interest rates and more product options.
• Rent-to-own: Similar to leasing, rent-to-own allows customers to acquire items without making an upfront payment. However, unlike leasing, the item does not become the customer's property until all payments are made.
• Saving up for purchases: For essential items that may not require immediate purchase, saving up money can be a cost-effective alternative. It avoids additional fees and interest charges, but it may take longer to acquire the item.
• Using layaway programs: Some retailers offer layaway programs, allowing customers to pay for items in installments and receive the item once it is fully paid. This option also avoids additional fees and interest charges.

Conclusion

Acima Leasing offers a unique leasing option for customers with subprime credit scores or those in need of flexible payment plans. Its quick and easy application process makes it an attractive choice, but customers should consider the potential drawbacks before deciding to lease through Acima. As with any financial decision, it is essential to carefully evaluate all options and choose the best one that fits your needs and budget. So, if you're considering using Acima Leasing for your next purchase, make sure to do thorough research on its terms and conditions and compare it with other alternatives before making a decision.