--- title: How to read and understand Lease-to-Own or Rent-to-Own contracts description: Don't get trapped by the No-Credit-Needed illusion. Equip yourself with the knowledge to make informed decisions and avoid financial surprises. image: https://kornerstoneliving.uownleasing.com/hubfs/dimitri-karastelev-ZH4FUYiaczY-unsplash.jpg --- - [Merchant Login](https://merchant.uownleasing.com) - [Customer Login](https://portal.kornerstoneliving.com/) [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=170&height=96&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://www.kornerstoneliving.com/home) - [Find a Store](https://kornerstoneliving.uownleasing.com/find-a-store) - [Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [About](https://kornerstoneliving.uownleasing.com/about) - [Customer Portal](https://portal.kornerstoneliving.com) - [Merchant Portal](https://merchant.uownleasing.com) [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=170&height=96&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://www.kornerstoneliving.com/home) - [Find a Store](https://kornerstoneliving.uownleasing.com/find-a-store) - [Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [About](https://kornerstoneliving.uownleasing.com/about) - [Customer Portal](https://portal.kornerstoneliving.com) - [Merchant Portal](https://merchant.uownleasing.com) [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=200&height=96&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://www.kornerstoneliving.com/home) - [Find a Store](https://kornerstoneliving.uownleasing.com/find-a-store) - [Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [About](https://kornerstoneliving.uownleasing.com/about) - [Customer Portal](https://portal.kornerstoneliving.com) - [Merchant Portal](https://merchant.uownleasing.com) # How to read and understand Lease-to-Own or Rent-to-Own contracts 3 Jan 2024 ![Picture of Kornerstone Living](https://app.hubspot.com/settings/avatar/d41d8cd98f00b204e9800998ecf8427e) [Kornerstone Living](https://kornerstoneliving.uownleasing.com/your-rights/author/kl) ![](https://kornerstoneliving.uownleasing.com/hubfs/dimitri-karastelev-ZH4FUYiaczY-unsplash.jpg) Most of the No Credit Needed “financing” available at the retailers are not loans, but Lease-to-Own ( or Rent-to-Own) contracts.   These agreements come with specific terms that outline how much you'll ultimately pay for the merchandise you're acquiring.   Let's dive into an example with one of the largest companies offering this kind of arrangement.  Example: Progressive Leasing   (Rental Fee, Initial Payment Amount, and Early Buyout Option will differ by retailer and the State you live in)  1. **Cash Price** – what you would pay at the store with cash  2. **Cost of** **Rental** - the rental fee charged in addition to the Cash Price 3. **Total Payment** - the total amount paid over 12 months 4. **Initial Payment** - amount due when you sign the contract at the store to cover the rental period up to your first payment date 5. **Amount of Each Payment** - amount debited from your account based on the agreed payment plan (weekly, twice a week, twice a month, or monthly)  6. **Number of payments** - total number of payments and the initial payment 7. **Rental period** - term of the lease, the most common is 12 months   ![KL Blog](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Blog.png?width=950&height=557&name=KL%20Blog.png) **So, what are you paying for this merchandise?**  - **Compared to paying in cash at the store (pre-tax)**  - Pay in 12 months, you will pay $3,486.50 more for a total of $6,236.50   - Pay within 90 days, you will pay $49 more for a total of $2,799 **Early Purchase** **Options: **You can exercise an early purchase option by purchasing the property at any time during the first 90 days after the property is delivered to you by paying us the "90-Day Purchase Option" amount plus tax and any Returned Payment Fees, with credit for all payments you have made. The 90-Day Purchase Option amount is $2,799.00. To purchase early call (877) 898-1970."   - Pay at 6th month, you will pay $2,724 more for a total of $5,475. "You can also purchase the Property at any time by paying us an amount equal to any payment then due (including Returned Payment Fees), plus the "Early Buyout Option" amount, which is 65% of the unpaid Recurring Payments" **Quick Math** - Pay withing 90 days and pay $49 more than Cash Price - **BEST OPTION!** - Pay after 90 days to 6 months, and your total cost will be **1.75 to 2 times** Cash Price - Pay in 12 months and your total cost will be **2.25 times** of Cash Price - A comparable 12-month loan will have approximately **190%** APR interest rate   **Fine print to keep in mind and avoid pitfalls?**  1. Initial Payment amount can vary by retailer 2. 90-Day Early Buyout Offer countdown may differ by company  **Confirm the exact date!** 3. Some companies may require you to call them to exercise your 90-Day Early Buyout Option 4. Some companies will no longer offer 90-Day Early Buyout Option if you missed or are late on any payment 5. 90-Day Early Buyout Option price may include additional markup and fee 6. Know what you will be paying if you cannot pay off in 90 days. The amount to Buyout your lease after 90 days will surprise you   ### Share: [Share on Facebook](http://www.facebook.com/share.php?u=https://kornerstoneliving.uownleasing.com/your-rights/how-to-read-and-understand-lease-to-own-or-rent-to-own-contracts&utm_medium=social&utm_source=facebook) [Share on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://kornerstoneliving.uownleasing.com/your-rights/how-to-read-and-understand-lease-to-own-or-rent-to-own-contracts&utm_medium=social&utm_source=linkedin) [Share on X](https://twitter.com/intent/tweet?original_referer=https://kornerstoneliving.uownleasing.com/your-rights/how-to-read-and-understand-lease-to-own-or-rent-to-own-contracts&utm_medium=social&utm_source=twitter&url=https://kornerstoneliving.uownleasing.com/your-rights/how-to-read-and-understand-lease-to-own-or-rent-to-own-contracts&utm_medium=social&utm_source=twitter&source=tweetbutton&text=How%20to%20read%20and%20understand%20Lease-to-Own%20or%20Rent-to-Own%20contracts) [No Credit Needed](https://kornerstoneliving.uownleasing.com/your-rights/tag/no-credit-needed), [Credit](https://kornerstoneliving.uownleasing.com/your-rights/tag/credit) ## Kornerstone Living ## Comments ## Related posts Search [Get the Mattress You Deserve with Affordable Financing Even with No Credit](https://kornerstoneliving.uownleasing.com/your-rights/get-the-mattress-you-deserve-with-affordable-financing-even-with-no-credit) [Read This Before You Get a Payday Loan](https://kornerstoneliving.uownleasing.com/your-rights/read-this-before-you-get-a-payday-loan) Search [![KL Uown Logo](https://kornerstoneliving.uownleasing.com/hs-fs/hubfs/KL%20Uown%20Logo.png?width=1500&height=330&name=KL%20Uown%20Logo.png "KL Uown Logo")](https://uownleasing.com/) [![MERCHANT LOGIN](https://no-cache.hubspot.com/cta/default/4659227/interactive-142789733815.png)](https://kornerstoneliving.uownleasing.com/hs/cta/wi/redirect?encryptedPayload=AVxigLKO%2Bb1r32HLce5NoirdpLhiOBpbinN3zkEjt5mPqJTRE2lLSNch52lwY%2BCHD9ylcQhVyLGAqVDRQxTi%2Bxc%2BLLKZNphQDTQ9N5hHCdoPLzTibpfc5pyTXfkTqZs6t3VbAJRZlCXsIRetjp5cbav4uZc2ybZgvB0ws5vFBnsiqQL7kw%2FPYQ%3D%3D&webInteractiveContentId=142789733815&portalId=4659227) Merchant Support : Phone: (833) 222- 2112 Email: [rs@kornerstoneliving.com](mailto:rs@kornerstoneliving.com) Mon-Sat: 8am-11pm EST Sun: 11am-11pm EST [![CUSTOMER LOGIN](https://no-cache.hubspot.com/cta/default/4659227/interactive-142789733895.png)](https://kornerstoneliving.uownleasing.com/hs/cta/wi/redirect?encryptedPayload=AVxigLI1F7pu1JwjwSyZ3yw9H0gh4hlz2VNL%2BF9Vj5kmW%2F3ocp613Pv9oOqXMu%2BYYdDDqZCg%2F6swIsgeobMkMH5yHz3RXrNipwLX9qlqNaTwsu%2FRxYZMqGrM7A1a8oxs7WQudwFZTrf%2Bk1OLJj2isXAmZpQ%2FRP0%2F1%2B1KIVqSYYHIqaqHuioBEQlr0g%3D%3D&webInteractiveContentId=142789733895&portalId=4659227) Customer Support : Phone: (888) 521-5111 Email: [cs@kornerstoneliving.com](mailto:cs@kornerstoneliving.com) Mon-Fri: 8am-11pm EST / Sat:  9am-11pm EST Sun: 10am-11pm EST **Kornerstone Living:** 406 W South Jordan Parkway #600, South Jordan, UT 84095, USA **Uown Leasing:** 10500 University Center Drive, Suite 150, Tampa, FL 33612, USA   [![Kornerstone Credit, LLC BBB Business Review](https://seal-utah.bbb.org/seals/blue-seal-200-42-bbb-90024434.png)](https://www.bbb.org/us/ut/south-jordan/profile/consumer-finance-companies/kornerstone-credit-llc-1166-90024434/#sealclick)   - [Our Story](https://kornerstoneliving.uownleasing.com/about) - [Better Solutions](https://kornerstoneliving.uownleasing.com/better-solutions) - [K-Protect](https://kornerstoneliving.uownleasing.com/kprotect) - [Privacy Policy](https://kornerstoneliving.uownleasing.com/privacy-policy) - [Terms and Conditions](https://kornerstoneliving.uownleasing.com/terms-and-conditions) ## The advertised service is a rental – or lease-purchase agreement (or in specified states, a rent-to-own agreement; a consumer rental-purchase agreement; a lease agreement with an option to purchase; or a consumer-lease agreement) provided by Kornerstone Living or its affiliates. Not available in MN, NJ, WI or WY. Merchant participating locations only. \*90-day purchase option includes a markup over Cash Price (except for 3-month purchase option in CA). While no credit score is required, Kornerstone Living obtains information from consumer reporting agencies to verify identity in connection with a lease application. Not all applicants are approved. Acquiring ownership through leasing costs more than the retailer’s cash price. See lease for details.   Copyright © Mollie, LLC, dba Uown Leasing dba Kornerstone Living 2025. All Rights Reserved. | [Privacy Policy](https://www.kornerstoneliving.com/privacy-policy)   ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Kornerstone Living", "url" : "https://kornerstoneliving.uownleasing.com/your-rights/author/kl" }, "dateModified" : "2024-01-03T22:42:36.036Z", "datePublished" : "2024-01-03T01:10:49.000Z", "headline" : "How to read and understand Lease-to-Own or Rent-to-Own contracts", "image" : [ "https://kornerstoneliving.uownleasing.com/hubfs/dimitri-karastelev-ZH4FUYiaczY-unsplash.jpg" ], "mainEntityOfPage" : { "@id" : "https://kornerstoneliving.uownleasing.com/your-rights/how-to-read-and-understand-lease-to-own-or-rent-to-own-contracts", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://kornerstoneliving.uownleasing.com/hubfs/Uown%20Marketing%20Materials/Logo/uown_Wtag.png" }, "name" : "Uown Leasing" } } ```