#lease a car with bad credit
Bad Credit Car Lease How Possible?
How to Lease or Buy a Car With Bad Credit
Having a bad credit history and low credit score often creates problems when leasing or buying a car. People with serious credit problems frequently have very frustrating experiences when looking for car loans and leases, particularly in times of tight credit and economic stress.
Many banks and finance companies have tightened up and are much more careful about doing business with subprime borrowers with poor credit histories.
However, car manufacturers and dealers are so competitive and desperate for business that they are often willing to take some extra risks to get business.
Generally, people with subprime credit (low credit score) should expect to pay higher interest rates, be required to make higher down payments, or make a security deposit (for leasing). They may even have problems getting auto insurance. It s good to regularly check your credit report for mistakes to make sure your data is accurate.
Analyze your credit situation first
If you have poor credit, do you know why? Do you know just how bad it is? There are varying degrees of bad credit. Some are seriously bad; some not so bad. A couple of late payments on a credit card account is not as bad as a recent bankruptcy or home foreclosure. Some problems can be quickly repaired; others take longer.
When you apply for a lease or loan, your car dealer and finance company can request a credit history report and credit score from one or more of the three major credit reporting agencies: Equifax. Experian. and TransUnion .
Since car dealers and finance companies don t have time to read through credit files in detail, they typically only look at your credit score. which is a single number that summarizes your entire credit history. Customers should always know their credit score ahead of time before being surprised by a car dealer. What s your FICO score? Find out now when you check your credit report for $1 at Experian.com!
A good history of car payments can be a positive even if you have had late payments on other debts.
Your credit score is a measure of your credit worthiness and can range from 300 to 850. The median for consumers in the U.S. is about 720. A score above 680 or 700 is considered prime and will get you the best rates. If you re below about 620-640, you re considered subprime and you may have problems.
Sub-prime borrowers can expect to pay higher interest rates on loans, mortgages, and car insurance. Those with credit scores in the 500 s or below can expect to be refused altogether.