Blue Hippo - This is more of an explanation of how they work than a complaint
I am writing this to help anyone thinking of using Blue Hippo to obtain electronics to have a full understanding of their program.
First off you choose you item. Once it is chosen, you are putting this item in lay-a-way for 52 weeks. Like many lay-a-ways, any money put in to the lay-a-way is lost if payments are not made. By agreeing to the lay-a-way, you are agreeing to allow them to debit your checking account every week or every two weeks. Since this is a lay-a-way, you will not receive your item until the lay-a-way is completely paid for. Once you have paid 100% of your lay-a-way, which takes around 52 weeks, you item will be ordered from their vendors and shipped to you.
After 13 weeks of lay-a-way, you will be given the option to improve your credit rating. At this point, you can have Blue Hippo finance your electronics. There is a pro and a *** to this decision.
The pro is you will receive your electronics in just a few weeks while improving your credit.
The *** is you are now in a purchasing contract similar to a car or home purchase. By switching to this financing, you are agreeing to all finances charges being added to the price of the items.
For some, this is a great option. It is great because you can get the positive payments posted to your credit report and help to rebuild your credit. You pay for these positive points with hefty finance charges, but your end result is better credit and you have obtained your electronics you desired.
For most, this is not a benefit at all. You would be just as well off by renting electronics from a major rent to own chain such as Rent-A-Center or Aarons. The key thing to remember is that much like Blue Hippo, if you do not make your payments, they will take the electronics back and you will lose all moneys paid on the item. You should also realize that with these finance charges , you are paying double, if not more, for the item. You will always be offered to use the moneys paid on other items or to try to continue payments on your product or a similar one.
The benefit to a Rent to own is you get the item right away and they do not automatically take your money. The drawback is they will not post anything to your credit, even if you make every payment on time or early.
I hope this detailed explanation of exactly how the program works will assist others in making the decision that is best for your situation.
Monetary Loss: $500.