Don't Allow Bad Credit to Ruin Your Opportunity for Car Leases
Car leases is not a bad option and may be easier to obtain than most people think. Car leasing holds multiple benefits such as driving around in a new car every couple of years. Plus, you will have very little, if any, maintenance and repair costs, as it is a new car. Car leasing also offers low monthly payments and can even give your credit score a boost.
Having bad credit may affect your options when applying for a car lease but will not prevent you from getting one. Your options of vehicles could be less fancy and you’re APR or Annual Percentage Rate may be higher than someone who has a better credit score.
What is a Good Lessee?
This is someone who has a solid and steady income, is not over-indebted and has a credit score above 680. Anyone who does not meet these standards is usually seen a riskier client. While you might find it harder to get a good deal, just know it is not impossible.
Bad Credit and Car Leasing
A person who has bad credit can still apply for a car lease but some penalties or conditions could be brought to the table before granting of such a lease would be done. These can include a security deposit, a down payment, a smaller or cheaper car, or a much higher than usual monthly interest. If you are aware of your bad credit then it is best to prepare yourself before visiting a dealer or lender. Knowing and accepting that you will be paying higher interest or making a big down payment will assist in making the deal go smoothly.
Some dealers may try to take advantage of someone who has bad credit. They may insist on a weekly or two-weekly payment instead of monthly. However, this is not a must and you can decide whether you want to do it that way or not. Never allow a dealer to bully you into commitments or a car that you don’t want. You can also agree to a shorter car leasing term which will aid in lessening your interest but only if you can afford the payments.
Your credit score will improve with every payment you make in full and on time on your car lease. Every car lease includes some warranty, even for people with bad credit. This means even if you have minor problems such as scratched paintwork, you will not need to spend cash on getting it repaired. Even with a bad credit, you will be able to select a car that suits your needs.
Car Leasing Options with Bad Credit
There are some options to consider if you have bad credit to still get a car lease. The first of these will be to find a co-signer. This is usually a family member or friend who is in a better position or who has a better credit score than you. This person will be held responsible for the monthly payment if the lessee should fail to pay. Yet, finding someone to carry such a burden is not always easy. You may also consider having a look at taking over someone else’s lease and car. This can be done but you should still consult a lender and have the correct paperwork done.
A bad credit score does not make a person a bad payer, sometimes life just happens too quickly, things spiral out of control, and one can end up with a bad credit rating.
Take the first step to rebuilding your credit score and getting the car you need on car leases. Always be open and honest with lenders, shop around and do not allow bad credit to ruin your opportunity for car leasing. Bad credit should not interfere with your life and stop you from obtaining your goals such as car leasing. Find yourself a good dealer, lender and the car of your dreams while rebuilding your good credit.