Most people associate credit score with personal loans, mortgages, car loans, and business loans. What they don’t know is that credit score also plays a key role when it comes to leasing a car. A bad credit score can limit your chances of leasing a vehicle, but it does not make it impossible. Here are a few steps you can follow if you want to lease a car but you have bad credit.
Increase Your Credit Score
Your credit score is going to be the main determining factor, so you need to tune it up if possible. There are many ways to increase your score, such as taking care of monthly utility bills on time, eliminating the small balances you have, and honoring your credit card payments. You don’t have to repay all your debts or eliminate all credit cards to qualify. Even a one percent increase in your credit score may be enough to convince the dealership to give you a car on lease.
Save Up Some Cash
Unlike when buying a car, dealers usually do not require a down payment to lease a car. However, if you have a bad credit score, you may be required to pay a certain percentage of the total cost of the car up front. It’s important to have some cash on-hand just in case the dealership makes such a request. If you agree to make the payment, the dealer may give you the car without even considering your credit report.
Show Proof of Income
You will need to show proof of income to qualify for a car lease. The dealership will most likely approve you if have a steady income. Bring at least the three latest payslips and provide a list of references the dealership can contact to determine you are not a credit risk.
Try a Lease Transfer
In a lease transfer, you take over the lease of a customer who is no longer able to honor the required payments. However, the transfer will need to be approved by the previous owner for it to hold. Only consider this strategy if you are unable to qualify for a lease after exhausting the options mentioned above. Also take into consideration there are certain risks to taking over someone else’s lease, such as going over the mileage limits and paying for damages the previous owner incurred.
Even if your credit score isn’t as high as you’d like it to be, you can still take advantage of car lease specials. Orange Countyresidents should contact the trusted auto brokers at Below Invoice if they’re interested in leasing a vehicle. Call 949-630-0303 today to schedule an appointment.