Is America First Finance Legit? A Deep Dive into Their Offerings and Reputation

Is America First Finance legit? The short answer is: generally, yes, but with significant caveats. America First Finance (AFF) operates as a legitimate lease-to-own financing company, offering a way for consumers with less-than-perfect credit to acquire durable goods like furniture, appliances, and electronics. However, legitimacy doesn’t automatically equate to being a wise financial choice. The company’s high interest rates and fees can quickly turn a seemingly affordable purchase into a costly long-term commitment. Understanding their terms, reputation, and potential alternatives is crucial before making any decisions.

Decoding America First Finance: What They Offer

America First Finance partners with retailers to provide a lease-to-own option for customers who may not qualify for traditional credit. Essentially, you’re renting the item with the option to purchase it later. This can be attractive to those with damaged credit or who lack the funds for an outright purchase.

Here’s a breakdown of the core offering:

• Lease Agreement: You enter into a lease agreement with AFF for a specific term, usually 12-18 months.
• Payments: You make regular payments (weekly, bi-weekly, or monthly) according to the lease schedule.
• Ownership: You only own the item once you’ve made all the required payments or exercise an early purchase option.
• Interest and Fees: This is where things get tricky. AFF charges significantly higher interest rates and fees than traditional financing. This is the price you pay for accessibility, but it can be steep.
• Early Purchase Options: AFF typically offers options to purchase the item early at a discounted rate, which can save you money compared to completing the full lease term.
• Returns: If you decide you no longer want the item, you can typically return it, but you won’t get back the payments you’ve already made.

Red Flags and Concerns: Proceed with Caution

While America First Finance is a legitimate company, several concerns warrant careful consideration:

• High Cost of Ownership: The biggest drawback is the exorbitant cost. The total amount you pay over the lease term can be significantly more than the item’s original retail price. This can easily add up to hundreds or even thousands of dollars in extra costs.
• Aggressive Marketing: Be wary of marketing that emphasizes affordability without clearly highlighting the total cost of ownership. Understand the true cost before committing.
• Potential for Repossession: If you miss payments, AFF has the right to repossess the item. This can further damage your credit and leave you without the product.
• Credit Reporting: While AFF may not initially report your lease agreement to credit bureaus, delinquent payments or repossession could negatively impact your credit score.
• Customer Service Issues: Some customer reviews mention difficulties with customer service and billing disputes. Thoroughly research customer feedback before proceeding.

Alternatives to America First Finance: Exploring Your Options

Before resorting to lease-to-own financing, consider these alternatives:

• Save Up: This is the most financially responsible option. Saving for a purchase avoids interest and fees altogether.
• Credit Counseling: A credit counselor can help you improve your credit score and explore more affordable financing options.
• Secured Credit Cards: These cards are easier to obtain with bad credit and can help you rebuild your credit history.
• Buy Used: Consider purchasing used items from reputable sources. This can save you a significant amount of money.
• Borrow from Friends or Family: If possible, borrowing from trusted individuals may be a lower-cost alternative.
• Personal Loans: Explore personal loans from banks or credit unions. Even with less-than-perfect credit, you might find a better interest rate than a lease-to-own agreement.

Making an Informed Decision: Due Diligence is Key

If you’re considering America First Finance, follow these steps:

• Read the Fine Print: Carefully review the entire lease agreement, paying close attention to the total cost of ownership, interest rates, fees, and cancellation policies.
• Compare Offers: Shop around and compare offers from other lease-to-own companies or alternative financing options.
• Assess Your Budget: Determine if you can comfortably afford the monthly payments without jeopardizing your financial stability.
• Check Customer Reviews: Research online reviews to get insights into other customers’ experiences with AFF.
• Ask Questions: Don’t hesitate to ask AFF representatives clarifying questions about the terms and conditions of the lease agreement.
• Understand the Repossession Policy: Know your rights and the consequences of missing payments.

Is it Worth It? Weighing the Pros and Cons

America First Finance can be a viable option for individuals with limited access to traditional credit who urgently need durable goods. However, the high cost of ownership is a significant drawback. It’s crucial to weigh the pros and cons carefully and explore all available alternatives before making a decision. If you can find a more affordable option, it’s almost certainly the better choice. Only use AFF as a last resort after exhausting all other possibilities. Remember, the initial convenience could translate into long-term financial strain.

America First Finance FAQs

1. What credit score do I need to be approved for America First Finance?

America First Finance typically doesn’t require a specific minimum credit score. They focus more on factors like income, employment history, and ability to make payments. However, having a very poor credit history could still impact your approval chances. Their target demographic is consumers who may not qualify for traditional credit options.

2. How does America First Finance affect my credit score?

Initially, America First Finance may not report your lease agreement to credit bureaus. However, if you fall behind on payments or have the item repossessed, this information could be reported and negatively impact your credit score. Maintaining timely payments is crucial to avoid damaging your credit.

3. Can I return an item to America First Finance?

Yes, you can typically return an item to America First Finance. However, you won’t receive a refund for the payments you’ve already made. Review the terms of your lease agreement for specific details on the return policy.

4. What happens if I miss a payment to America First Finance?

Missing a payment can result in late fees and potential repossession of the item. It’s crucial to contact AFF as soon as possible if you anticipate difficulty making a payment to discuss potential options. Consistent missed payments can also negatively impact your credit score if reported.

5. Is there an early purchase option with America First Finance?

Yes, America First Finance usually offers an early purchase option that allows you to buy the item before the end of the lease term at a discounted price. This can save you money compared to completing the entire lease agreement. The specific discount varies depending on the agreement and the timing of the purchase.

6. How do I contact America First Finance customer service?

You can usually contact America First Finance customer service through their website, by phone, or by mail. Check their website for the most up-to-date contact information and hours of operation.

7. What types of products can I finance through America First Finance?

America First Finance typically finances durable goods such as furniture, appliances, electronics, and other household items. The specific products available will vary depending on the retailer they partner with.

8. How does the lease-to-own process work with America First Finance?

You apply for financing at a participating retailer. If approved, you enter into a lease agreement with AFF. You make regular payments, and after completing all payments or exercising an early purchase option, you own the item.

9. Can I cancel my lease agreement with America First Finance?

The cancellation policy varies depending on the specific lease agreement and state laws. Review your agreement carefully to understand your rights and responsibilities regarding cancellation. In most cases, you can return the item, but you will forfeit any payments you have already made.

10. Are there any hidden fees with America First Finance?

While America First Finance discloses fees in the lease agreement, it’s crucial to read the fine print carefully to identify all potential fees, such as late fees, reinstatement fees, or other charges. Understanding the full cost is essential.

11. How does America First Finance compare to other lease-to-own companies?

The terms and conditions of lease-to-own agreements can vary significantly between companies. Always compare offers from multiple providers to find the most favorable terms and lowest overall cost. Consider factors like interest rates, fees, early purchase options, and customer service reputation.

12. Is America First Finance a predatory lender?

While America First Finance provides a service to those with limited credit access, the high interest rates and fees can be considered predatory by some. It’s crucial to understand the full cost of ownership and explore all alternative financing options before resorting to a lease-to-own agreement. Responsible borrowing and financial literacy are key to avoiding potentially harmful lending practices.