Guaranteed consumer funding

Guaranteed consumer funding is an type of credit similar to layaway, which allows consumers to purchase items on a payment plan regardless of their credit history.

This process requires signing a contract in which the consumer promises to make all of the payments in full by their due date. In return they will receive guaranteed credit and are allowed to use the product as they pay it off

With this type of loan the consumer does not receive their purchased items right away as they would using traditional credit purchasing methods. Instead they are expected to make a predetermined number of timely payments as a show of good faith. If those requirements are met, the consumer may collect their purchased items and continue to make the payments until the contract has been fulfilled and the item has been paid off.

Due to the nature of the purchase and the terms of extended credit, generally these services do not have a cancellation or refund policy. However this information must be a part of the signed contract to be enforced.

Along with secured loans / credit and layaway programs, guaranteed consumer funding is a good way to help re-build bad credit and establish credit for those without.

Seeing a payment contract to completion generally results in a positive report to the credit bureaus on your behalf.

If a contract is signed for the guaranteed credit services, than the consumer is protected by the truth in lending act which requires lenders to fully disclose all terms of the agreement to potential customers. These terms include but are not limited to: duration of the loan, required payments & their due dates, cancellation / refund policy, availability of the merchandise, and total cost to the consumer.


[ LA Times - The Lowdown on Layaway, Credit Card and Check Transactions]

[ Federal Trade Commission- Facts for Businesses Offering Layaways]

[ University of Florida - Layaway Purchase Plans]

[ St. Petersburg Times - The Unlost Art of Layaway]

[ Federal Trade Commission - Facts for Consumers]

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Carolyn B. Maloney — Carolyn Maloney Member of the U.S. House of Representatives from New York s 14th district Incumbent Assumed office …   Wikipedia

  • Developments in the States, 1998 — ▪ 1999 Introduction       Riding a tailwind from a strong national economy, state and local governments in the United States again enjoyed the luxury of surplus revenues during 1998 and gained more power in developing national policies. For the… …   Universalium

  • California Proposition 87 (2006) — California Proposition 87 was a proposition on the ballot for California voters for the November 7, 2006 general election, officially titled Alternative Energy. Research, Production, Incentives. Tax on California Oil Producers. It was voted down… …   Wikipedia

  • Alberto Fujimori — This name uses Spanish naming customs; the first or paternal family name is Fujimori and the second or maternal family name is Fujimori. Alberto Fujimori 藤森 謙也 …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Australia — /aw strayl yeuh/, n. 1. a continent SE of Asia, between the Indian and the Pacific oceans. 18,438,824; 2,948,366 sq. mi. (7,636,270 sq. km). 2. Commonwealth of, a member of the Commonwealth of Nations, consisting of the federated states and… …   Universalium

  • japan — japanner, n. /jeuh pan /, n., adj., v., japanned, japanning. n. 1. any of various hard, durable, black varnishes, originally from Japan, for coating wood, metal, or other surfaces. 2. work varnished and figured in the Japanese manner. 3. Japans,… …   Universalium

  • Japan — /jeuh pan /, n. 1. a constitutional monarchy on a chain of islands off the E coast of Asia: main islands, Hokkaido, Honshu, Kyushu, and Shikoku. 125,716,637; 141,529 sq. mi. (366,560 sq. km). Cap.: Tokyo. Japanese, Nihon, Nippon. 2. Sea of, the… …   Universalium

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.