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Progressive Leasing May Seems A Darling, Here’s How It Works

Progressive Leasing is one of the popular options for lease-to-own purchases with a presence at Best Buy, Lowe’s, and others for installment payments.

Whether you want to pick up new furniture at Mattress Firm or purchase a smartphone at Cricket Wireless on a lease-to-own term, this is one payment plan method you can utilize.

While it is popular for its high purchasing credit that you can use in financing items at any of the growing numbers of online stores that accept Progressive Leasing, you may end up paying a lot more if you go beyond three months.

Progressive Leasing

Progressive Leasing

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Tip: Progressive Leasing is a product financing provider operating on a lease-to-own model allowing you to get items and pay for them in installments within a timeframe of 12 months.

You may be able to enjoy interest-free financing through its 90-day early purchase option if you can complete payments within the first three months.

While it may seem amazing with that offering, you could end up paying more than double the price of the product outside its early purchase period.


Progressive Leasing is one of the top options you will find on several retail websites where you can apply for buy now pay later financing.

It operates on a lease-to-own model, renting you products that you can make them yours once you complete the required rental payments also called the total cost of lease ownership.


Read more about Progressive Leasing

It is one of the top choices for those who prefer buy now pay later services that require no credit before you can access their financings.

With many of the conventional BNPL platforms allowing free-interest six-week installments, you can enjoy its zero-interest for up to three months.

Between the day you pick up the product and the 90th day of the contract, that is the best period you should try and pay the complete costs as you will save yourself a lot of funds.

If you go beyond the 90th day, you will land in a trap period where the cost will shoot up and could go as much as more than double the original cost of the item.

Though Progressive Leasing still offers an early purchase option post the interest-free window, the benefit that comes with the second EPO is not as good as the first as you could pay at least 65% more in addition to the product cost.

With its small-sized monthly payment, you may not notice how much you spend to cover the rental costs, and by the last (12th) month, the total would have been more than twice the original price of the item.

Hence, you should consider this if you can close it out within the first 90 days or after trying other financing options.

You Can Use Progressive On

Sam Ash

Sam Ash is a leading musical instrument retailer, known for its extensive selection of instruments, audio gear, and accessories. With a commitment to serving musicians, Sam Ash is a trusted destination, offering a diverse range of products and expertise.

Best Buy

Best Buy is a prominent electronics retailer, providing a comprehensive selection of consumer electronics, appliances, and technology services. Known for its competitive prices and discount programs, Best Buy is a go-to destination for individuals seeking the latest gadgets, home appliances, and entertainment systems.

Musician’s Friend

Musician’s Friend is an online music gear retailer known for its extensive inventory of instruments and accessories. Catering to musicians of various levels, it offers a diverse selection of musical gear, from instruments to audio equipment.

Guitar Center

Guitar Center is a major retail chain specializing in musical instruments and equipment. With an extensive inventory, it caters to musicians of all skill levels. Known for its wide range of guitars, amps, drums, and more, Guitar Center is a go-to destination for music enthusiasts.

Cricket Wireless

Cricket Wireless offers a diverse range of devices, including smartphones and feature phones, catering to various preferences and budgets. With an emphasis on affordability and reliable connectivity, Cricket Wireless provides options for both basic and advanced mobile communication needs.

Parts of the Progressive Leasing Contract

Because its mode of operation is different from the other buy now pay later services, you are required to sign a contract at the beginning of the lease.

This document usually contains very important parts that detail some of the things that will be considered during the lease period. 

Below are the essential components of that contract with their explanations which you need to know before proceeding to sign it:


Cash Price (Original Product Cost)

The cash price, also known as the original product cost, refers to the full retail price of a product when purchased outright with a single lump sum payment.

This is the amount a buyer would pay if they choose not to use Progressive Leasing or any financing options.

The cash price is the total cost of the item without factoring in any interest, fees, or finance charges that might be associated with alternative payment methods like credit or leasing.

It represents the direct cost of the product itself, providing a baseline for comparison when evaluating different payment options.

The reason Progressive Leasing usually includes this in the contract is because other costs will be dependent on it.


Lease Repayment Period

The lease repayment period refers to the duration over which a lessee (you or the person leasing the item) makes payments to the lessor (Progressive Leasing) for the use of a particular asset.

In the context of Progressive Leasing, the repayment period is also known as the lease term.

During the lease repayment period, the lessee makes regular payments, which can be weekly, bi-weekly, or monthly, depending on your preference as agreed in the lease agreement.

The total length of the repayment period is usually 12 months and is agreed upon in the lease contract.

At the end of the lease repayment period, the lessee (you) typically has several options, such as returning the leased item, renewing the lease, upgrading to a newer model, or choosing to purchase the item outright through a buyout option.


Your State of Residence

In the lease contract, “State of Residence” refers to the legal residence or domicile of the individual or entity entering into the lease agreement.

This information is typically included in the lease agreement to establish the jurisdiction under which the lease is governed.

The laws and regulations governing lease agreements can vary from one state to another, so specifying the state of residence helps determine which legal framework applies to the agreement.

Including the state of residence in the lease contract is important for several reasons:

  • Legal Compliance: Lease agreements must comply with the laws and regulations of the jurisdiction in which the lessee resides. Including the state of residence helps ensure that the lease is legally valid and enforceable.
  • Taxation: Different states have different tax regulations. Specifying the state of residence can help determine the applicable taxes, if any, associated with the lease. For instance, Progressive Leasing has 90-day same-as-cash for CA residents
  • Consumer Protection: Consumer protection laws vary by state. Including the state of residence helps establish the rights and responsibilities of both parties in accordance with local consumer protection regulations.
  • Jurisdiction for Disputes: If disputes or legal issues arise between the lessor and lessee, specifying the state of residence helps determine the appropriate jurisdiction for resolving conflicts or pursuing legal action.


90-Day Early Purchase Option (3 Months in CA)

The “90-Day Early Purchase Option (3 Months in CA)” in the lease contract refers to a provision that allows the lessee (the person leasing the item) to purchase the leased item before the end of the standard lease term.

This option typically allows the lessee to acquire ownership of the leased item by making an early buyout payment without paying an extra cost of the lease.

Here is a breakdown of the key components:

  • 90-Day Early Purchase Option: The standard duration provided for the lessee to exercise the early purchase option is 90 days. During this period, the lessee has the opportunity to decide whether to buy out the lease and own the item outright without additional charge for lease cost.
  • (3 Months in CA): In California (CA), consumer protection laws impact the terms of lease agreements. The inclusion of “(3 Months in CA)” specifies that, in compliance with California regulations, the lessee has a minimum of 3 months to exercise the early purchase option without paying extra.

For CA residents, this early purchase option is the same as cash, meaning that you will pay exactly the price of the product. Your previous installment payments are considered and will form a part of the final sum needed to exercise this EPO.

If your address is outside CA, you will pay the same as cash as well but your initial payment will be added as an extra charge.


Early Purchase (Post 90-day) Option

The term “Early Purchase Option (Post 90-day EPO)” in the lease contract refers to an option that allows the lessee (the individual leasing the item) to purchase the leased item after the initial 90-day period specified in the lease agreement.

Essentially, it extends the opportunity for the lessee to acquire ownership of the leased item beyond the initial 90-day early purchase window to enjoy money-saving benefits.

At this stage, the same-as-cash option is not applicable as you will need to pay extra if you decide to close the contract.

The value you will save utilizing this option varies depending on the stage where the contract is.


Cost of Lease-to-own

In the Progressive Leasing agreement, the term “lease-to-own cost” signifies the overall sum for which, as the lessee, you are accountable, covering expenses related to renting the product over the lease term.

Opting to purchase the item in the 12th month entails adding this cost to the cash price upon lease conclusion, resulting in the comprehensive total cost of ownership.

In essence, you can interpret this as the combined rental fee for the entire duration of your lease agreement.


12-month Lease-to-own Total

The “12-month Lease-to-own Total” represents the complete amount, including lease payments and any associated costs, for acquiring ownership of a product through a lease-to-own arrangement over a period of 12 months.

This figure typically includes the sum of the original cash price, lease payments made during the 12-month term, and any additional fees or charges specified in the lease agreement.

It signifies the total financial commitment required to transition from leasing to owning the item within the specified 12-month period.


How Progressive Leasing Works

Progressive Leasing works by providing an opportunity for individuals to acquire desired products through a lease-to-own contract.

Once your Progressive Leasing application is approved, you can get a product from a participating merchant.

The subsequent activities involve making installment payments through a lease.

You have two main options: you can either choose to exercise the early purchase option, allowing you to own the product before the lease term is completed, or you can continue making payments for the designated 12-month period.

By the end of the 12 months, you attain complete ownership of the product.

Progressive Leasing Flow

Below is a more detailed view of the process involved when using Progressive Leasing for financing a product purchase:


Lease Contract Request

This is your formal request to engage in a lease agreement for a specific product.

As you submit your application, you will be asked to provide personal details like your name, address, and contact information, along with financial information such as income details.

If you are handling this procedure on the merchant’s website during checkout, the form is explanatory and you should be able to walk you through the necessary steps.

Alternatively, for in-store financing, an attendant will typically guide you through this section.

For a smoother process, ensure your smartphone is active, especially if you are completing the procedure in-store.

The form will prompt you to provide details such as your name, employer details, valid photo ID, bank details, Social Security Number, address, and contact details.

After providing all the necessary information, simply click the submit button to send the details to Progressive Leasing.

Following submission, you will receive a One-Time Password (OTP) for authentication. Enter this OTP on the validation page to seamlessly proceed with the process.


The Lease Decision Stage

During this phase, the decision process is entirely automated, leveraging the information provided in the initial stage.

Typically, it takes just a few minutes for a decision to be rendered regarding your application.

Here is a breakdown of what occurs in this automated process:

  • Soft Credit Inquiry: Progressive Leasing conducts a soft credit check, also known as a soft pull or inquiry. This check is for informational purposes and does not impact your credit score.
  • Decision on Purchasing Power: The outcome of the soft inquiry is utilized to assess your spending limit, determining whether you can feasibly repay the lease costs over the contracted period.
  • Decision on Contract: Considering various determining factors, a decision is reached. You either receive approval to acquire the product, or your application is declined.

It is essential to note that the Progressive Leasing option does not solely rely on your credit score for approval.

Even with a less-than-ideal credit standing, you may still qualify based on other factors considered by Progressive Leasing.

They use data from credit agencies like Clarity Services and FactorTrust to assess eligibility.


Leased Item Pick-up

Once your application is approved, the product will be delivered to you, though ownership is not transferred until the initial payment is successfully processed.

In this stage, Progressive Leasing acquires the item from the merchant on your behalf and chooses to lease it to you.

It is important to recognize that, similar to the dynamics of driving a rented car, Progressive Leasing, as the lessor, retains the authority to reclaim the product from you at any point during the contract period.

Much like a vehicle owner’s ability to request the return of a rented car, the lessor in this context can take back the product during the course of the lease contract.


The Repayment Stage

Upon activating the contract, the responsibility for continuing the repayment of the lease costs falls on you.

It is vital to understand that the repayment for the product is directly to Progressive Leasing, not the merchant.

This is due to Progressive Leasing having already settled the entire product cost with the merchant before you took possession of the item.

Your responsibility involves making periodic payments based on your selected frequency during the application stage—these payments typically occur weekly, bi-weekly, or monthly.


First 90-day Early Purchase Period

In this phase, a distinct advantage is presented: opting to settle all payments ensures that you will not incur more than the original product cost, mirroring the ‘same as cash’ benefit in California.

Notably, this choice is accessible at any time within the initial 90 days, you do not have to hold on until the third month to utilize it.

By choosing this option, you stand to make significant savings on ongoing rental fee payments.

If you have the necessary funds, this presents an optimal opportunity to secure full ownership of the device.

To initiate this process, you can log into the Progressive Leasing app or contact their support team for guidance on the necessary steps.


Interest-tied Early Purchase Stage

Should you miss the 90-day option, the next favorable opportunity to conclude your Progressive Leasing contract is immediately thereafter.

While the savings may not align with the first option, there are still substantial benefits to be derived by settling the full cost of ownership at this stage.

Depending on when you make this decision, potential savings range between 13% to 35% on rental costs.

This offers a valuable chance to preserve more of your funds while securing complete ownership of the product.


The Contract Closure

The final phase of the contract is typically in the twelfth month.

Upon summing up all payments made since the lease initiation at this point, you will observe that the total exceeds double the original price of the product, emphasizing the significance of considering the early purchase option.

Although the modest monthly payments may not immediately convey this, the comprehensive picture becomes clearer when considering all payments collectively.

If you have maintained a record of consistent and timely payments, you now have the option to retain the product, as the contract automatically concludes at this stage.

This signifies the end of the lease agreement, rewarding your commitment with the opportunity to keep the product.


Progressive Leasing Frequently Asked Questions


Below are some frequently asked questions about using Progressive Leasing for lease-to-own financing:


What is Progressive Leasing?

Progressive Leasing is a lease-to-own program that provides consumers with an alternative financing option for purchasing retail goods, particularly in the furniture, electronics, appliances, and other similar sectors.

It is designed to cater to individuals who may not have access to traditional credit or those with less-than-perfect credit histories.

Does Progressive Leasing run your credit?

Yes, Progressive Leasing does conduct a soft credit check as part of its approval process.

A soft credit check, also known as a soft pull or soft inquiry, is used for informational purposes and does not have a significant impact on your credit score.

This type of credit inquiry is different from a hard credit check, which is typically associated with loan or credit card applications and can have a more noticeable impact on your credit score.

The soft credit check performed by Progressive Leasing helps assess your creditworthiness and may involve reviewing factors beyond just your credit score.

It is important to note that even individuals with less-than-perfect credit histories may still qualify for Progressive Leasing based on their alternative data assessment and the program’s emphasis on providing accessible financing options

What items can I purchase with Progressive Leasing?

Progressive Leasing is commonly used for financing a variety of consumer goods across different categories.

While specific products may vary depending on the participating retailer, the types of items you can typically purchase with Progressive Leasing include:

Furniture: This may include sofas, chairs, tables, mattresses, bedroom sets, and other furniture items for your home.

Electronics: Progressive Leasing can be used to finance the purchase of electronics such as televisions, audio systems, gaming consoles, and other home entertainment devices.

Appliances: Household appliances like refrigerators, washing machines, dryers, ovens, and microwaves can often be leased through Progressive Leasing.

Computers and Laptops: Progressive Leasing is commonly used to finance the acquisition of computers, laptops, tablets, and other technology devices.

Jewelry and Accessories: Some jewelry stores offer Progressive Leasing for the purchase of items such as engagement rings, watches, and accessories.

Home Decor and Improvement: You may use Progressive Leasing to finance home decor items, lighting fixtures, and products related to home improvement.

Fitness Equipment: Exercise machines, gym equipment, and fitness accessories are often eligible for financing through Progressive Leasing.

Musical Instruments: Some music stores participate in Progressive Leasing, allowing you to lease musical instruments and equipment.

It is important to check with the specific retailer or merchant where you intend to make a purchase to confirm their acceptance of Progressive Leasing and the types of products available for financing.

What is the minimum credit score for Progressive Leasing?

Progressive Leasing is known for its flexible approval process, and it does not strictly rely on traditional credit scores to determine eligibility.

Instead of focusing solely on credit scores, Progressive Leasing considers a variety of factors, including alternative data sources, to assess an individual’s ability to make lease payments.

This approach makes Progressive Leasing accessible to individuals with varying credit histories, including those with less-than-perfect credit.

It is designed to provide financing options to consumers who may face challenges in obtaining traditional credit.

As a result, there is no specific minimum credit score requirement for Progressive Leasing. Instead, the approval decision is based on a holistic assessment of the applicant’s financial situation.

Keep in mind that while a soft credit check is performed during the application process, it is for informational purposes and does not have a significant impact on your credit score.

How many Progressive Leasing accounts can I have?

You can have up to two open lease-to-own agreements simultaneously when using Progressive Leasing.

This means that you can enter into and manage two separate leasing agreements with Progressive Leasing at the same time.

Keep in mind that the terms and conditions of each individual lease agreement, including payment schedules and product details, will be specific to that particular agreement.

Can you return the Progressive Leasing item?

Yes, you can return items leased through Progressive Leasing.

The terms state that you can cancel your lease at any time. This means you have the right to return the items to Progressive Leasing without incurring additional charges or penalties.

After cancellation, your only financial obligation would be any unpaid lease-to-own costs that may have accumulated up to that point.

This indicates a flexibility in the leasing arrangement that allows you to return the items under specified conditions.

How can I contact Progressive Leasing?

To reach out to the Progressive Leasing team regarding your lease-to-own contract, go to the support page and choose your preferred option for reaching its support team.


While Progressive Leasing is a good alternative, especially for anyone with a not-so-perfect credit score, note that it might lead you to pay more than expected for a product.

Hence, use it as only an alternative after not being able to secure financing through other channels.

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