No Credit Check Shed Financing

No credit check shed financing through lease purchase agreements

A lot of people are having trouble with credit these days, and no matter what the reason behind the problem, (it is not always of our own making) life still goes on.

A lot of people who are not having trouble with their credit are choosing to fly under the radar for a variety of reason.

If you are seeking to purchase a shed and fit into one or the other of these groups, then a storage shed rent to own program may be just right for you.

Most lease purchase or storage shed rent to own programs do not use credit checks, and in case of default, it will not ruin your credit history or make it worse.

One of the largest sectors in lease purchase storage buildings today is the folks who have had to downsize due to the housing crisis, and the other subsequent economic problems facing the country. They often find themselves with credit problems, and the downsizing has left them crunched for space, and with bad credit. That makes it difficult to make a significant purchase, and also makes such a purchase a necessity.

There are a variety of reasons that someone might choose to fly under the radar of their financial institutions, and the prying eyes of other organizations. A bad divorce, or an unrealistic financial or legal action by creditors can lead to the need to keep things off the financial record. Besides, what you buy should be your business, and not anyone else.

In both cases, shed financing through lease purchase agreements will do the trick.

Contact your local shed dealer to see if they offer one.

Rent To Own Storage Barns: The Truth

In his article: Rent to Own Storage Sheds – Why You Should Think Twice, Michael W. Mathis covered some of the reasons why he believes rent to own storage sheds are a bad idea for homeowners. He makes a few good points along the way.

The truth about rent to own storage barns

So, what is the truth about rent to own utility barns, and is it something you should consider?

It is obvious that lease purchase agreements are not the “be all, end all” for purchasing anything, and, of course, you should think twice before buying anything using this means.

The main point of his article seems to be that rent to own storage barns are expensive, since you pay about twice what the building would cost for cash. He finishes by saying that: “If they can’t obtain reasonable financing or save and pay for out right, then they probably don’t really need it.”

While I agree, that lease purchase agreements are not the best options, and that they will cost more than an outright purchase, there are some times when a rent to own storage shed makes sense.

When is rent to own a bad idea?

When you have the money to pay for it outright. You will save money if you purchase the building with cash, but there are also cases where this is not true.

When is rent to own a good idea?

This list should give you some idea, and I am sure you can come up with other cases:

  1. When the building is needed to create or preserve wealth. In such cases, the building is really a tool, like a truck, or a table saw. If it is needed, and can be obtained in no other way, it is better to have it for the purpose of creating wealth, than to not have it, and lose the opportunity.
  2. You intend to use the building for business, and taxes are an issue. This is related to number 1. In some situations, renting offers tax advantages. In some states, a portable building is not taxed as a part of the property where it resides. In many situations, business rental can be deducted from income taxes, and that can level the playing field.
  3. If you are renting space in a public storage. If you are already paying rent for something you must preserve, renting storage space that you will eventually own makes sense. You will be leasing something for a few years and looking forward to the day when it belongs to you as opposed to leasing space forever. Spending $200.00 per month forever makes far less sense than paying $200.00 per month for 36 to 48 months.
  4. You have credit problems. If you have credit problems, bank financing may not be possible for you. In fact, you may need the building to alleviate the cost of public storage.
  5. You want to avoid credit problems. If the possibility that you might default on a loan and ruin your credit has crossed your mind, and it is a risk you do not want to take, a rent to own storage shed may be the best option. Most rent to own storage barn dealers have contracts that will allow you to return the building without banging up your credit. Will your banker do that?

Check out the rules and regulations where you live, and, of course, you should look over the lease purchase agreement before you sign it. Ask any questions you have, and the dealer will be happy to answer them.

Rent To Own Shed Is It Right For You?

Rent to own sheds, is that a good option for my family? That is an excellent question. There is so much information floating around about rent to own programs, and most of it is bad, that it can be difficult to decide if this is a tool you should use, or a problem to avoid like the plague. We think we can help you to make the right decision.

Storage needs

This is the situation where many families find themselves: There are a few pieces of furniture, a few family heirlooms, a box of important family records, and several boxes of things they just can’t stand to lose or toss out. The spare bedroom and garage are full of items that are no less important, and every closet is filled to the brim with some things that may be needed in the future.

Here are the options:

  • They can continue to live with the clutter
  • They can get rid of the excess
  • They can rent public storage space
  • They can purchase a storage building

Option 1: Living with the clutter

Living with the clutter is not a good option. Clutter can become both a physical and mental health hazard! It becomes disorganized, and then encourages disorganization  throughout the home. It seems to teach disorganization by example, acts a s a hiding place for bugs and rodents, and causes stress on the family.

Option 2: Getting rid of the excess

Getting rid of the excess is probably not going to happen, since it is at the root of the problem to begin with. There might be some things that could be done to become more efficient in the way things are being stored inside the home, but that will offer only limited relief.

Option 3: Self storage

Public storage is an option, but it is not a very good option. Paying someone to hold your stuff for a lifetime can add up to a whopping amount in a very short time. Consider that a years worth of storage fees at $100.00 per month is $1,200 per year multiplied by the number of years you continue to use the service, and I am sure we can all think of a better way to spend that money. Besides, driving back and forth to your mini storage site can be costly in these times of high fuel prices.

See also:  Rent to Own or Rent Forever for a little more on the self storage story.

Option 4: Owning your own storage

Buying a storage building for your own backyard storage is the best of the options, in fact, it is about the only one that makes sense. The problem is, that it can be a little expensive if you buy a building from a lot that will be delivered to your site. There are kits that can be purchased that can save quite a bit of money, but that is another story. So, how can you buy the building you need, without breaking the family budget?

  • You can buy a building outright
  • You can get financing through your bank or other lending institution
  • You can use a credit card
  • You can rent to own

Paying cash

If you have enough cash in reserve, buying a storage building outright makes the most sense, but most of us don’t have that much discretionary income. Laying out a few thousand at one time, would knock a hole in our budgets that is bigger than we could manage.

Bank financing

Your lending institution might be willing to loan you the money, if you have great credit, and are willing to pay the high interest rates, but most of us don’t have perfect credit scores, and we may not want to take the risks involved.

Credit cards

Using a credit card to make the purchase may be the worst idea of all, unless you have a low interest rate, and a good plan. Credit card debt can get you into serious financial peril.

Rent to own

Rent to own storage buildings may be the best idea under such circumstances. Keep in mind, that a lease purchase will probably cause a substantial increase in the total cost, but it may just be worth looking into in many cases.

5 benefits of rent to own sheds

  1. No damage to your credit. Most lease to own programs do not report defaults to any credit bureau. This can be an important factor if your financial situation becomes an issue.
  2. Most rent to own programs do not perform credit checks, so if your credit is less than perfect you won’t be rejected on that account.
  3. Most rental purchase agreements can be terminated early without penalty, in case you no longer need the building, or can no longer afford to make payments. You simply remove your stored materials, and place a call to the dealer. Do you think your bank or credit card company would do that?
  4. Most rent to own storage building programs will allow you to pay the building off early with no penalty. If you have a windfall, you can usually pay the building off without paying the remaining rental costs, saving you a substantial amount of money.
  5. If you use your new building for business storage, or to operate a home business, you may be able to write the rental costs off of your federal income tax.

Rent To Own Sheds

There are many lease to own programs offering everything from home electronics and appliances to automobile tires and wheels. Almost anything from homes to computers can be rented with an option to buy. While some of these programs may not be desirable, there are some that can be of huge benefit under the right conditions.

Rent to own storage sheds

Renting to own utility buildings is one place where lease purchase makes sense, especially if any of these conditions exist:

  • You are currently renting storage space in a public storage unit.
  • You need the building for business purposes.
  • You have credit issues.
  • You want to avoid credit issues in the future.

When is lease to own a good option?

To avoid perpetual rent

If you are renting something that you really need, it would be better to pay a little more to rent that product with the option to own it rather than renting it to perpetuity. Leasing storage space at a self storage, public storage, or mini storage facility costs money that will never be regained. However, a rent to own storage building will eventually belong to you, and you will come to a point where the building is paid for, and there will be no further costs.

Business and taxes

Lease purchase also makes sense if you are using the product for business. Rent to own storage buildings, if used for home office, or home business purposes can, in many cases, be written off as a tax deduction for business.

Past credit issues

If your credit is less than perfect, you can rent to own without having a credit check, and without worry of further credit problems in case of default. In most cases, if you realize you cannot continue to pay for the building, or no longer need it, you can call the supplier, and have them remove the building at no further expense to you.

Future credit issues

Most rent to own companies do not report to credit agencies unless you ask them to. Some rent to own programs will allow you to pay the remainder of the buildings cost off at any time, without having to pay the remaining rent. This offers a big advantage over most banks and home improvement loans.

Keep in mind that a lease purchase agreement will probably require you to pay almost double the cost of the building. If this seems excessive, you should also keep in mind that you would be paying interest if you borrowed the money from a lending institution, and that most programs will allow you to pay the building off early without penalty, and without paying the remaining rent. This makes the higher cost of the rent a little more palatable.

Please take note: If you are considering the purchase of a storage building through rent to own programs, or any other way, be sure to check your local Storage Building Regulations.

There are many other situations where rent to own may be the best option. Feel free to mention any that you can think of in the comment section.

Renting Sheds

So, you need some extra storage space, but you don’t need it forever. You have checked the local mini storage facilities, and found the price to be a little unreasonable, spent some time thinking about all the time and fuel you will waste traveling back and forth between your home and your stuff, and decided that there must be a better way.

There is!

In many areas, you can now rent a shed, have it delivered to your property, and even have an option to buy the shed if you desire to keep it.

Rent to own sheds

Most shed rentals are actually rent to own or lease purchase agreements which allow you to pick out a shed, pay a small amount down, have the shed delivered to your backyard, and make a monthly payment consistent with the cost of public storage, and about half of your monthly rental will go toward purchasing the building if you decide to keep it. It is really a pretty good deal when you consider the savings in time and fuel and the possibility of eventual ownership for the price you would otherwise be spending on rent alone.

Such rental purchase agreements usually require no credit check, and will not leave a mark on your credit should you decide not to continue. In many cases, you can pay the building off by simply paying the amount still owed on the building, not including the rent!

This is not for everyone, but it will almost always beat whatever deal you could make on an equal amount of public storage space.

Your local dealers will be happy to discuss the ins and outs of this program with you.