How rent-to-own and lease-to-own agreements work

"Rent-to-own" for furniture, appliances, and electronics usually takes one of two forms. They feel similar at the register but can carry different rights, fees, and repossession rules, so it helps to know which one you signed.

• Traditional rent-to-own store

  A traditional rent-to-own store rents you an item under a short agreement that renews with each payment and lets you own it once you've made them all. There's no credit check, but the total cost is usually far above the cash price.

• Point-of-sale (embedded) lease-to-own

  Point-of-sale lease-to-own is the 'lease to own' choice you see at a regular store's checkout or online. A separate leasing company (not the retailer) owns the item until you complete the lease or buy it out, often cheapest in the first few months.

Whichever type you have, your protections still depend on your state's law. Find your state or read the repossession rights overview.

Consumer information, not legal advice. For your situation, consider speaking with a licensed attorney or a local legal-aid office.