This Best Buy Program Causes Some to Pay More Than Double
Best Buy (NYSE: BBY) presents its version of rent-to-own as progressive leasing, and touts it as a way for people who can't get approved for its credit card to buy big-ticket items. The problem is that this type of program can lead to consumers -- ones who already don't qualify for credit -- paying more than twice the item's upfront cost.
Best Buy has a program that is essentially rent-to-own. Image source: Best Buy.
Participants in the program pay for the item they buy in 12 equal installments that are debited directly from their bank account. The program comes with interest fees, which means if customers don't pay off the total early, they pay an average of 2.09 times the original cost of the item, according to data compiled by The Washington Post.
Source Fool.com
