Demystifying the Money Maze: Lease-to-Own vs. Loans, Credit & More

Financial jargon can leave you feeling like you're stuck in a confusing maze. But don't worry, we're here to be your map! As a leasing company, we've cracked the code on common terms like "finance," "loan," and "lease" to help you navigate your next purchase with confidence.

Key Terms to Know:

  • Finance: Funding an item, often through a loan or lease.
  • Lease: An agreement to let an individual take home an item and pay for the cost over a period of time
  • Loan: Lending money to an individual with an expectation of repaying the original amount with interest 
  • Layaway: Making payments gradually toward a product to take home at the end of the agreement
  • Credit: Trust given to buy something before paying, based on past financial behavior
  • Fees: Charges for processing, service, or late payments
  • Income: Money earned through work or investments 
  • Interest: Cost of borrowing money, usually a percentage of the loan amount
  • Debt: Money owed to others, typically from borrowing
  • Budget: Planning your income and expenses
  • Pay off: Complete a payment agreement
  • Early Buyout (EBO): Early purchase of a leased item, often at a discount
  • Cash Price: The full cost of an item when purchased outright with cash
  • Initial Payment: The down payment required at the beginning of a lease-to-own agreement
  • Fair Market Value: The estimated price of an item based on current market conditions. This is often used to determine the buyout price of a leased item
  • Buyout Price: The amount you can pay to take full ownership of a leased item before the end of the lease term
  • Rental/Lease Fee: The recurring charge you pay for the use of the item during the lease term. This fee covers the cost of financing and managing the lease agreement
  • Total of Payments: The sum of all rental/lease fees due over the entire lease term
  • Remaining Balance: The amount you still owe on the lease agreement after making a payment
  • Term: The length of the lease agreement, typically measured in months or years
  • Renewal Period: An optional timeframe at the end of the lease term where you can extend the lease and continue making payments

Lease-to-Own: No Credit Needed, Same Day Take-Home!

Unlike loans, our flexible lease-to-own options offer:

  • No credit check: Your past doesn't hold you back!
  • Same-day take-home: Enjoy your purchase immediately while making payments
  • No interest: Skip the extra cost of borrowing money
  • Early buyout discounts: Pay it off quickly and save cash 

Simple Requirements, Quick Approval:

Forget layaway's wait period. With us, you just need:

  • A job and bank account for the past 90 days. 
  • A quick online application with an almost instant response.
  • Approval for up to $5,000 to finance essential items.

Kornerstone Living


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