Lease-to-own services like Acima and Progressive Leasing allow you to get products like furniture, appliances, electronics, and more without paying for everything upfront. With these services, you make smaller recurring payments over time until you own the item.
But how do you know which lease-to-own company is the better option for you? Here’s an in-depth look at the pros and cons of Acima and Progressive Leasing to help you decide.
A Brief Comparison Table
| Feature | Acima | Progressive Leasing |
| Retailer Network | Limited to major national partners | 30,000+ retailers accepted |
| Interest Rates | Fixed interest rates on leases | No interest, just flat fees |
| Maximum Lease Term | 12 months | 24 months |
| Early Ownership | Requires lease completion | Can buyout lease anytime |
| Credit Reporting | Does not report payments | Reports payment history |
| Returns | No returns allowed | 72 hours return policy |
| Fees | Few fees | Late fees and returned payment fees |
| Customer Service | 24/7 support | Limited hours |
Overview Of Acima And Progressive Leasing
Acima and Progressive Leasing are two popular lease-to-own companies that provide financing options for big-ticket items from participating retailers. With both services, you can get the products you need right away and pay for them over time through a recurring lease agreement rather than all at once.
Some key things to know upfront:
- Acima partners with major retailers like Best Buy, Rooms to Go, and Big Lots. You can lease furniture, electronics, appliances, jewelry, tires, and more.
- Progressive Leasing works with over 30,000 retailers including Mattress Firm, Kay Jewelers, and Fred’s. Offerings include furniture, appliances, electronics, and jewelry.
- Neither service does credit checks but both require a valid ID, Social Security number, and steady income source.
- You’ll make payments weekly or monthly until you complete the lease term. Then you own the product.
Now let’s look at the advantages and disadvantages of each company in more detail.
Acima Pros
Wide product selection – Acima partners with multiple major national retailers so you can lease a large variety of products and brands through their service.
Instant approvals – The application process with Acima only takes a few minutes and you’ll receive instant approval if you meet the basic eligibility requirements.
Few fees – Acima does not charge application fees, down payments, or cash advance fees like other lease services often do. You only have to pay applicable taxes for your lease upfront.
Flexible lease terms – Lease terms with Acima range from 3 to 24 months so you can choose payments that fit your budget. Extended terms mean lower payments.
Early payoff discounts – If you want to pay off your lease early, Acima offers discounts for paying the remaining payments in a lump sum. This can save you money over time.
Easy application process – You can apply for Acima financing easily in-store or online. If approved, you can walk out with the product right away.
24/7 customer service – Acima provides customer service reps 24 hours a day, 7 days a week if you have any questions or issues.
Also Read: Comparison Between Acima And Affirm.
Acima Cons
Can only be used at specific stores – You can only use Acima leasing for products at retailers they partner with. Progressive leasing has a wider network.
Late fees apply – If you miss a payment, Acima charges late fees of either $8 or 5% of the late payment, whichever is greater. Late fees add significant costs.
No option to return – Acima does not allow returns once your lease begins. You have to continue making payments until the term is up.
Does not report to credit bureaus – Acima does not report your payment history to credit bureaus. On-time payments won’t help improve your credit score.
No ownership until lease ends – You don’t obtain ownership of the item until all lease payments are made. If you stop paying early, Acima can repossess it.
Progressive Leasing Pros
Huge retailer network – Progressive leasing is accepted at over 30,000 retailers nationwide including major chains and local stores. Very wide product selection.
No interest – Progressive leasing charges a flat weekly or monthly fee that includes no interest or hidden charges. Acima leases do include interest.
Flexible terms – Like Acima, Progressive allows you to choose payment terms from 3 to 24 months depending on the item leased.
Easy application – Applying with Progressive Leasing also only takes a few minutes and approvals are instant in-store after a soft credit check.
Pay as you go – Progressive offers the option to make payments weekly, bi-weekly, or monthly depending on your preference and cash flow.
Ownership at any time – You can choose to buy out a Progressive lease at any point and take ownership rather than waiting until the end.
Return option – Progressive allows you to return items within 72 hours if you change your mind. Acima does not accept returns.
Credit reporting – If you make on-time payments with Progressive, it can help improve your credit score as they report payment history.
Progressive Leasing Cons
Higher total costs – While Progressive has no interest, the flat fees mean you often end up paying more overall than just purchasing the item outright.
Risk of repossession – Like Acima, Progressive can repossess items if you fall behind on payments. You won’t obtain ownership until the contract ends.
Fees for late and returned payments – Progressive charges $7 late fees and $25 for any returned payments. These add significant costs if issues arise.
No 24/7 support – Progressive Leasing’s customer service department has more limited hours (M-F 9am – 6pm) compared to Acima’s 24/7 support.
Credit score damage if repossessed – With Progressive, having an item repossessed due to non-payment could also hurt your credit score.
Varying fees – The flat weekly or monthly fee you pay for a Progressive lease varies quite a bit depending on the product. Fees are not consistent.
Limited customer service reviews – Progressive seems to have less customer feedback available online than Acima, making it harder to gauge service quality.
Also Read: Comparison Between Snap Finance And Progressive Leasing.
Key Differences And Considerations
To recap, here are some of the main pros and cons differentiators between Acima and Progressive Leasing:
- Retailer network – Progressive works with over 30,000 stores. Acima has limited major retailers.
- Interest and fees – Progressive charges no interest just flat fees while Acima leases include interest.
- Maximum lease term – Progressive offers leases up to 24 months. Acima’s terms max out at 12 months.
- Ownership – Progressive allows buyout anytime. Acima requires completing all payments first.
- Credit reporting – Progressive reports payment history. Acima does not.
- Returns – Progressive permits returns within 72 hours. Acima does not allow returns.
- Customer service – Acima has 24/7 support. Progressive is limited hours.
For most shoppers, Progressive Leasing is likely the more affordable and flexible option overall if you qualify. However, Acima does have advantages like predictable interest costs and better customer service availability that may appeal to some lessees.
Carefully consider your budget, credit needs, and the retailer you want to use before choosing a lease-to-own provider. Comparing the total cost of the lease along with fees is wise to determine the best financial option for expensive products you need.
Also watch this about Acima!
Frequently Asked Questions (FAQ)
Acima does not have set credit limits because they do not do credit checks or rely on credit scores to approve leases. Rather, the amount you can lease with Acima depends on factors like your income. Acima offers leases up to $4,500 but some qualifying customers may be approved for higher amounts on a case-by-case basis.
Acima does not base approval on credit scores or even do credit checks. So, there is no minimum credit score. As long as you have a steady source of income and a valid Social Security number and ID, you can qualify regardless of your credit history.
Acima is considered a good lease-to-own financing company especially for lower credit customers who may not qualify with traditional lenders. They provide reasonable payment terms, have few fees, offer a wide product selection, and their customer service is top-rated. Just be sure to compare their lease cost to other options.
Some of Acima’s main competitors in the lease-to-own financing space include Progressive Leasing, Rent-A-Center, Aaron’s, and Flexshopper. These companies all provide similar lease-to-own, rent-to-own, and point of sale credit offerings for retailers.
Also Read: Comparison Between Snap Finance And Acima.
The Bottom Line
When weighing Acima Vs. Progressive Leasing for a lease-to-own agreement, consider all the costs, fees, retailer options, and ownership terms for each. Make sure leasing makes financial sense compared to saving up for a cash purchase.
While lease-to-own services provide immediate access to products, they tend to cost significantly more in the long run. Evaluate your budget and credit situation carefully to determine if these financing options are affordable and worthwhile for you.