What FlexShopper is and how it differs from traditional rent-to-own

FlexShopper is a rent-to-own platform that lets you lease electronics, appliances, furniture, and computers with the option to own them after a set number of payments. Unlike a traditional rent-to-own store where you visit a physical location, FlexShopper operates online. You browse their catalog, select items, and the company ships them to you. You then make weekly or bi-weekly payments, and after paying a certain amount, you own the item outright.

The main difference between FlexShopper and a brick-and-mortar rent-to-own store is convenience and selection. You don't have to visit a showroom, and FlexShopper's inventory is larger than most local stores. However, the cost structure works similarly: you pay more over time than you would if you bought the item outright, and you're renting until ownership transfers.

FlexShopper also reports your payment history to credit bureaus, which means on-time payments can help build credit, but missed payments will show up on your credit report just as they would with any other account.

Key Takeaways

  • FlexShopper lets you lease items online with weekly or bi-weekly payments, and you own the item after paying off the lease agreement.
  • You can rent electronics, appliances, furniture, and computers without a large upfront purchase, though the total cost will be higher than buying outright.
  • FlexShopper reports payments to credit bureaus, so consistent payments build your credit history while missed payments damage it.
  • You can return items at any time without penalty, though you won't own anything and lose the money you've paid so far.
  • The company conducts a soft credit check, which doesn't affect your credit score, but approval depends on income verification and other factors.

How the payment structure works

FlexShopper offers weekly and bi-weekly payment plans. The exact payment amount depends on the item's price, the length of the lease agreement, and your payment frequency. For example, a television might cost $15 per week on a 78-week plan, while the same television bought outright might cost $400 to $600.

The total amount you pay over the lease period will exceed the item's retail price. This difference is how FlexShopper makes money and covers the risk of customers returning items or defaulting on payments. The longer the lease term, the lower each individual payment, but the higher your total cost.

Once you've paid off the lease agreement, the item is yours. There are no additional fees or paperwork required to transfer ownership—it happens automatically when the final payment clears.

What happens during the approval process

FlexShopper performs a soft credit check, which means the company looks at your credit but doesn't make a hard inquiry that would lower your credit score. The company also verifies your income, usually by asking for recent pay stubs or bank statements, and confirms your identity.

Approval is not based solely on credit score. FlexShopper considers your income, employment status, and whether you have an active bank account. People with no credit history, poor credit, or recent financial problems may still be approved, though the terms offered (payment amount, lease length) may vary.

The approval process typically takes a few minutes to a few hours. Once approved, you can place an order and have items shipped to you within a few business days, depending on inventory and your location.

What you need to know about returning items

You can return any item to FlexShopper at any time without penalty or restocking fees. However, returning an item means you stop making payments and lose all the money you've paid so far. You do not receive a refund for payments already made.

To return an item, you contact FlexShopper to arrange a pickup or drop-off. The company covers return shipping for most items. Once the item is received and inspected, your account closes and your payment obligation ends.

Returning an item does not hurt your credit score, but it also doesn't help it. The payment history you built while making on-time payments stays on your credit report, but no new positive history is created after you return the item.

How FlexShopper affects your credit report

FlexShopper reports your account and payment history to the three major credit bureaus: Equifax, Experian, and TransUnion. This means your lease agreement shows up on your credit report as an open account, similar to a credit card or loan.

Making all payments on time builds your payment history, which is the largest factor in your credit score. Missed or late payments are reported and will lower your score. If you fall significantly behind, FlexShopper may send your account to a collection agency, which further damages your credit.

Closing your account by paying off the lease or returning the item will show as a closed account on your report, but the positive payment history remains and continues to help your score.

Comparing FlexShopper to other rent-to-own options

Traditional rent-to-own stores like Aaron's and Rent-A-Center operate similarly to FlexShopper but require in-person visits. Their payment terms and total costs vary by location and item. Some people prefer the in-store experience and the ability to see items before committing, while others prefer FlexShopper's online convenience.

Buying on a credit card or through a buy-now-pay-later service like Affirm or Klarna is cheaper overall if you have access to credit, because you pay less interest or fees. However, these options require either an existing credit card or a credit check that may affect your score. FlexShopper's soft check and approval for people with poor or no credit makes it an option when other routes aren't available.

Saving up to buy an item outright is the cheapest option, but it requires time and discipline. FlexShopper lets you use the item when ready while you pay, which matters if you need a refrigerator, computer, or bed right away.

Common reasons people choose or avoid FlexShopper

People choose FlexShopper when they need an item when ready but don't have cash on hand or access to credit. The online ordering and home delivery are convenient, and the soft credit check means approval is possible even with a damaged credit history. Building credit through on-time payments is also a draw for people working to improve their financial standing.

People avoid FlexShopper because the total cost is significantly higher than buying outright or financing through a credit card. If you can save for a few months or use a credit card with a lower interest rate, you'll pay less. Some people also object to the rent-to-own model on principle, viewing it as expensive for people with fewer financial options.

Another consideration is that you don't own the item until the lease is fully paid. If you stop making payments or return the item, you have nothing to show for the money spent. With a traditional purchase or loan, you own the item even if you're still paying it off.

Frequently Asked Questions

What items can I rent from FlexShopper?

FlexShopper rents electronics (televisions, laptops, tablets, gaming consoles), appliances (refrigerators, washers, dryers, microwaves), furniture (sofas, beds, dining sets), and computers. The exact inventory changes, so you can browse their website to see what's currently available in your area.

Can I return an item and rent something else?

Yes. You can return an item at any time, and once your account closes, you can start a new lease on a different item. However, you lose all payments made on the first item, so returning and restarting is expensive if you do it frequently.

What happens if I miss a payment?

A missed payment is reported to the credit bureaus and lowers your credit score. FlexShopper may contact you to collect the payment. If you fall behind by a significant amount, the company may repossess the item and send your account to a collection agency, which further damages your credit and may result in legal action.

Do I need good credit to be approved?

No. FlexShopper approves people with poor credit, no credit history, or recent financial problems. Approval depends on income verification and an active bank account more than on your credit score. However, the terms offered may vary based on your credit profile.

Is there a way to own the item faster?

You can make extra payments or pay off the lease early without penalty. Doing so reduces the total amount you pay and gets you to ownership sooner. Contact FlexShopper to confirm their early payoff terms before making extra payments.