Shoppers have several options to finance an above-ground swimming pool without a credit check, a needed requirement if you have an adverse history on your consumer report or have yet to establish a borrowing record.
Some personal loan lenders make decisions without pulling a consumer report from one of the big three bureaus or looking at scores from FICO® or Vantage®.
Buy-now-pay-later companies might approve borrowers without a traditional credit pull for relatively small purchase amounts financed with bi-weekly installments.
Meanwhile, rent-to-own contracts might allow you to lease higher-end equipment but work better for people with lousy payment records than those without history.
Buy-Now-Pay-Later Swimming Pools
Buy-now-pay-later swimming pools might help you finance your above-ground natatorium without a credit check. However, the number of installments and their timing (bi-weekly versus monthly) determines whether you can afford a high-end model or the budget option.
Pay Later Monthly
The average buy-now-pay-later above-ground pool is more affordable without a credit check, with monthly installments spread over more time. In other words, you might be able to upgrade your swimming experience.
A personal loan allows you to buy a higher-end swimming pool now and pay it back later in monthly installments spread over one to three years. Of course, you will incur origination fees and pay interest, so factor these costs into your financing decision.
Choose this financing alternative if you want deeper water, more elbow room for splash parties, and more durable metal sides.
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Pay Later Bi-Weekly
Buy-now-pay-later above-ground pools are less affordable without a credit check, with weekly or bi-weekly installments squeezed into a compressed period. In other words, you might have to opt for a lower-end swimming experience.
Most buy-now-pay-later companies do not charge interest or origination fees, but they do limit the amount financed. They need assurances that you can handle the four installments spread over a short period.
- The first 25% is due at checkout
- The second 25% is due two weeks later
- The remaining 50% will be paid in two bi-weekly installments
Explained another way: you have only six weeks to fund the purchase price. Therefore, you might have to settle for shallow water, cramped quarters, and flimsy materials.
Rent-to-Own Swimming Pools
Rent-to-own above-ground swimming pools are another popular way to finance your outdoor plunge bath without a credit check. You make a lease payment each month, and you have two choices at the end of the contract period.
- Return the equipment after cooling off in the water for a single season
- Apply the lease payment towards purchase by making a balloon payment
When considering the longer-term consequences, the rent-to-own financing option works better for people with bad credit than those with no history. Remember, you pay a premium to finance purchases while asking lenders to ignore a critical underwriting tool.
Work with No Credit
Rent-to-own above-ground swimming pools may not be the ideal alternative for young adults with no borrowing history. You might qualify for the financing without a credit check, but you are not building a consumer report for future use.
First-time personal loans with no credit history might get you off the borrowing gerbil wheel because the lenders will report your on-time payment performance to the three major bureaus (Experian, Equifax, and TransUnion).
Six months after taking out the loan, you will have an official consumer report and credit score that lenders can incorporate into their underwriting process, possibly saving you money on interest charges and origination fees.
On the flip side, rent-to-own companies disclose that their contracts are leases, not loans or an extension of credit. Therefore, they will not report your on-time payment behavior to the bureaus, which will not help you the next time you attempt to finance a purchase or borrow money.
Work with Bad Credit
Rent-to-own above-ground swimming pools are the preferred financing option for people with adverse histories appearing on their consumer reports. Without a credit check, the lender will not see your record of delinquency, defaults, repossessions, civil judgments, or bankruptcy.
Personal loans based on income, not credit score, are a pipedream for people with negative information on their consumer reports. Lenders are unlikely to approve sizable unsecured contracts for applicants with horrible history on their file because they have no collateral to repossess should you default.
However, a leased swimming pool acts as collateral to secure the contract. If you fall behind on payments, the rent-to-own company can send a crew to drain your pool and remove the equipment and supplies from your property. Afterward, they can rent the pool to another family to recoup their losses.
Also, you can return the above-ground pool at the end of the lease period rather than purchasing the equipment. People with bad credit might find it challenging to fund the balloon payment.
