How to Buy on Credit Without a Credit Card
Sign a Reverse Layaway(TM) agreement., Rent to own., Set up a closed-end credit account., Take out a home equity line of credit (HELOC)., Use the buy now pay later option that is offered by websites.
Step-by-Step Guide
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Step 1: Sign a Reverse Layaway(TM) agreement.
This involves a commitment on your end to make payments as agreed upon in a contract.
Additionally, these payments are usually guaranteed by some form of collateral, such as pre-written checks.
This is how you buy on credit using the Reverse Layaway(TM) process:
Find a retailer or service provider that offers the Reverse Layaway(TM) program.
Complete the retailer's Reverse Layaway (TM) form.
This includes providing your identifying information and signing a contract to pay as agreed.
Write checks to cover each future payment that must be made as per the contract terms.
The salesperson will then run these checks through the store's accounting system.
The check amounts will be drawn from your checking account on the dates you fill in on the checks. -
Step 2: Rent to own.
If you have no credit card, you can purchase merchandise on credit by renting to own it.
Find a retailer that specializes in rent to own sales.
You may find a rent to own location on the Internet or walk in to a storefront in order to begin the process of renting to own.
Complete the application.
There is no credit check to rent to own, but you must prove employment/income, provide information about your residence and give a list verifiable references.
Purchase merchandise at the rent to own store, up to the credit limit the store determines.
Agree to repayment dates and terms.
You may choose to pay weekly, bi-weekly or monthly. , Closed-end credit lines are extensions of credit that have pre-defined credit amounts and repayment periods.
There are retailers that cater specifically to buyers with no credit card by offering closed-end credit accounts that can only be used to purchase merchandise directly from the retailer.
Find retailers that offer closed-end credit accounts by searching online.
Complete an application for a closed-end credit account.
You will have to provide employment, income, residence and reference information.
Shop for merchandise on the retailer's website or have the retailer send you a catalog.
Make monthly payments directly to the retailer until your account is paid off. , If you own a home and have some equity buildup, then you may be able to borrow against your home's equity by setting up a home equity line of credit.
A HELOC works much in the same way as a revolving line of credit, or credit card, in that you can use it to purchase items, and then make monthly payments at an established interest rate.
Apply for a home equity line of credit with your bank or a mortgage lender.
Draw against your HELOC either by check or account card whenever you want to make a purchase.
Make payments toward your HELOC balance on a monthly basis. , Many online retailers allow you to make a purchase using the buy now pay later option, then give you 90 days same as cash terms.
This is, in essence, buying on credit, as you receive your merchandise before you have to pay for it. -
Step 3: Set up a closed-end credit account.
-
Step 4: Take out a home equity line of credit (HELOC).
-
Step 5: Use the buy now pay later option that is offered by websites.
Detailed Guide
This involves a commitment on your end to make payments as agreed upon in a contract.
Additionally, these payments are usually guaranteed by some form of collateral, such as pre-written checks.
This is how you buy on credit using the Reverse Layaway(TM) process:
Find a retailer or service provider that offers the Reverse Layaway(TM) program.
Complete the retailer's Reverse Layaway (TM) form.
This includes providing your identifying information and signing a contract to pay as agreed.
Write checks to cover each future payment that must be made as per the contract terms.
The salesperson will then run these checks through the store's accounting system.
The check amounts will be drawn from your checking account on the dates you fill in on the checks.
If you have no credit card, you can purchase merchandise on credit by renting to own it.
Find a retailer that specializes in rent to own sales.
You may find a rent to own location on the Internet or walk in to a storefront in order to begin the process of renting to own.
Complete the application.
There is no credit check to rent to own, but you must prove employment/income, provide information about your residence and give a list verifiable references.
Purchase merchandise at the rent to own store, up to the credit limit the store determines.
Agree to repayment dates and terms.
You may choose to pay weekly, bi-weekly or monthly. , Closed-end credit lines are extensions of credit that have pre-defined credit amounts and repayment periods.
There are retailers that cater specifically to buyers with no credit card by offering closed-end credit accounts that can only be used to purchase merchandise directly from the retailer.
Find retailers that offer closed-end credit accounts by searching online.
Complete an application for a closed-end credit account.
You will have to provide employment, income, residence and reference information.
Shop for merchandise on the retailer's website or have the retailer send you a catalog.
Make monthly payments directly to the retailer until your account is paid off. , If you own a home and have some equity buildup, then you may be able to borrow against your home's equity by setting up a home equity line of credit.
A HELOC works much in the same way as a revolving line of credit, or credit card, in that you can use it to purchase items, and then make monthly payments at an established interest rate.
Apply for a home equity line of credit with your bank or a mortgage lender.
Draw against your HELOC either by check or account card whenever you want to make a purchase.
Make payments toward your HELOC balance on a monthly basis. , Many online retailers allow you to make a purchase using the buy now pay later option, then give you 90 days same as cash terms.
This is, in essence, buying on credit, as you receive your merchandise before you have to pay for it.
About the Author
Kathryn Coleman
Committed to making hobbies accessible and understandable for everyone.
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