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How Does Progressive Leasing Work?

For homebuyers, Progressive Leasing offers an alternative to traditional financing which allows buyers to lease appliances and other major household items. It is different from traditional rental agreements, in that the renter receives the use of the item for a specific period of time with no extended out-of-pocket costs.

This means that there are no payment installments or cash outlays required beyond the initial purchase price, so they can enjoy both lower monthly payments and less constant demand for funds.

What Is Progressive Leasing?

In a nutshell, progressive leasing is like renting for purchase. A buyer purchases an item and immediately leases it using a lease agreement. Think of it as a lease-to-own plan that helps you build your dream home without a lot of upfront costs.

Progressive leasing works best for buyers who don’t want to put a lot of money down and pay interest on high-ticket items like appliances and furniture. The main benefit is the ability to make smaller monthly payments over a longer period of time, resulting in lower interest charges and less cash outlay.

How Does Progressive Leasing Work?

In simple terms, Progressive Leasing buys the items you want from the seller and leases the items out to you. You can specify the term of agreement which is usually around 12 months to ownership in most cases. The company charges an initial payment that will be collected when you sign the lease.

After that, you’re expected to make your first payment 10 days after you receive the items you ordered.

Terms and payments usually vary depending on the merchant. However, the basic structure is the same. Usually, you’ll need to pay a one-time fee which is around $79. The company also needs to access checking accounts to guarantee payments.

One thing I don’t like about it is that the payments are automatically withdrawn and charged from your account.

If you’re not really keen on giving a lender access to your personal accounts, then this may be a deal-breaker for you.

Documents Required for Registration

There are 4 things you need to prepare to register for this program:

  • Social security number or ITIN
  • Bank account details
  • Credit or debit card
  • To be 18 years or older

I like how the platform relies on more than just your credit score before they approve your loan. It makes it fair for everyone, especially those who are trying to get out of debt.

Fill And Submit Your Progressive Leasing Application

After getting prepared, you can fill out the application on their website.

The registration process is easy and straightforward, but the verification process is a bit longer compared to other online lenders. You are required to furnish different documents to prove that you are eligible for the program.

This includes your identification documents like your social security number or ITIN number, bank account details, credit/debit card details, and others.

Shop For Leasable Items Once Application Is Approved

Once the application is approved, you can start shopping for your items. The selection of items may be slim, as the company only partners with a small number of major retailers.

They have broadened their horizons since 2015, but I still find it to be limited compared to other lenders who have a wider selection of acceptable products.

You can use the same credit card and bank account to make purchases through the company and other Progressive Leasing stores.

Make Initial Lease Payment

The initial lease is usually around $79 and includes the cost of the item plus a 3% commission. The company will collect this fee through your credit card and bank account transaction.

You can start enjoying the item straight away and continue to make monthly lease payments until the agreement has expired.


Once you’re approved and you’ve paid the necessary leasing fee, then you’re all set to go through the checkout process. Just pick the items you want using the website. You can also contact customer service for assistance in choosing the best products.

The agreement lasts for 12 months, usually, and requires you to make monthly lease payments.

Advantages Of Progressive Leasing

Progressive Leasing can be a great way for people with bad credit to purchase an item they need without having to pay a lot of money upfront. Some traditional rental companies may request as much as $500 as a deposit and $200 per month just to rent an appliance.

This is why it makes sense to turn to Progressive Leasing for cash-strapped individuals who need something now but don’t want to shell out too much money.

Disadvantages Of Progressive Leasing

As I mentioned earlier, there are some restrictions on acceptable products. This means that you may not be able to choose from a wide variety of appliances and other household items.

The company only works with a limited number of merchants which makes it difficult to find what you want in some cases.

Items Eligible for Lease from Progressive Leasing

The items that are eligible for lease from Progressive Leasing are limited. According to the company, they only work with a limited number of retailers, including Lowes, Bed Bath & Beyond, Macy’s, Sears, etc.

The selection may be limited but it’s still better than doing nothing at all.

Frequently Asked Questions

Here are some of the most popular questions about Progressive Leasing. If you have any problems, ask them here.

Does Progressive Leasing Affect My Credit?

The short answer is no. The reason for this is that you’re not paying interest on the lease agreement. The credit makes a tiny contribution to your monthly payments which you make over a period of time.

The point is that Progressive Leasing doesn’t affect your credit, as it’s simply a service offered by the company.

Where Can I Buy with Progressive Leasing?

You can use Progressive Leasing to lease items from a limited number of retailers. Most of the items that you can lease through this program are appliances and household items that you may need.

Are There Any Charges or Fees for Progressive Leasing?

Since you’ll be paying for your lease by credit card, the company needs to collect a small payment to cover the cost of processing payments. This fee is usually around 3% of the outstanding balance.

Who Is Eligible to Apply for Progressive Leasing?

The program is available to all natural persons, from 18 years old and above.

Final Thoughts

Many people recognize Progressive Leasing as a good way to purchase an item without having to pay a lot of money upfront. There are some restrictions on what you can buy through the program, but it’s still better than not having anything at all.

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