Can you lease a car with bad credit?
Having bad credit is never desirable when going into any kind of financial agreement. When it comes to car leasing, bad credit isn’t great but it’s not the end of the world; it may restrict what kind of car and agreement you can secure.
What is ‘bad’ credit?
We all have a credit score that is based on the number of bank accounts and credit agreements you have as well as taking into account late payments and extensive borrowing. This score is used by lenders to assess how risky it would be to lend to you. Credit reporting company, Experian ranks the following ratings as:
- 560 and below = bad
- 561-720 = poor
- 721-880 = fair
- 881-960 = good
- 961 and above = excellent
How does my credit score affect my leasing prospects?
Having a less than perfect credit score does affect your ability to lease a car but it doesn’t make it impossible. Each lender will have different policies but generally leasing is still an option; however, you may not be able to get the car that you desire.
If your credit score is the reason you are being rejected from leasing a car, by checking your credit report, and where it is going wrong, it is easy to see what can be done to improve your score and hopefully give you better luck in the future.
As a general rule most lenders look for a ‘good’ or ‘excellent’ credit score.
If you are declined a lease based on your credit score you may want to look into some other ways to lease:
- Joint application – where two people (living at the same address) apply together.
- Guarantor – someone will act as a guarantor and take on the payment if you are unable to make it.
- Experian – get your Experian report, identify what is causing the problem and look to see if this can be rectified to get your score back on track.
Am I still able to lease a car?
The answer is yes. You may just have to be flexible with what you are willing to agree to as, having a bad credit score, you will be dubbed a ‘risk’.
Many leasing companies will only offer the best deals and vehicles to clients who are not considered high-risk.
Each company is different and has varying policies regarding credit scores. For more information on our vehicles, as well as our credit restrictions, click here to get in touch with a member of our team.