Must complete a pre-application form to apply for a vehicle lease in which must provide personal information and financial information is also required. In this way, dealers assess whether the applicant can pay.
The credit score plays a fundamental role in this choice because it tells the dealer whether you have a good payment history or not. Of course, the lower your credit score, the less likely you will qualify for a leased car.
The credit score needed to lease a vehicle in 2016
According to experts, the required credit score changes from one dealership to another; each one is free to impose its own rules regarding the required score. After some studies, it is evident that the minimum recommended is 620.
A credit score between 620 and 679 is “good” for most dealers. However, for almost everyone, customers should ideally have a score between 680 and 739.
Those with scores above 680 are more likely to get attractive offers related to vehicle leasing. Those with scores below 660 have only a 22% chance of getting the application accepted.
Before starting the leasing process, it is necessary to check the score and find an alternative to improve it. You can do this by lowering credit card balances and verifying that the credit history has no errors.
What happens if I have a credit score below 600?
For dealers, customers with a score below 600 are a high-risk lease. It does not indicate that it will be impossible to access a lease, but it does mean that the chances of having the desired car are lower.
They will remain in the high-risk financing category and often be asked for a security deposit to cover any installments that are not paid on time. Terms and conditions become tougher the lower the credit score.
Tips for improving your credit score and leasing your desired vehicle
Those with bad credit should note that all is not lost, and you still have some options to access your desired lease. Some easy tips to follow if you are facing this situation are:
You can start looking at particular dealerships and brands.
With bad credit, getting good results with popular and recognized brands in the market is difficult. On the other hand, the private ones have less harsh measures and can offer more flexibility to lease the desired car.
However, it does not mean there will be no additional fees or conditions. The procedure will not be as complex as others.
Find a co-signer
There is also the alternative of finding someone with good or excellent credit who is willing to sign a co-signing contract. That is, it will not be the person in question who makes the contract to deliver the vehicle to you.
Instead, both of you will go to the dealership, and he will function as a guarantor. If you default on any payment or term, the other person should also be responsible for the consequences.
It helps to have better terms and payment levels. But it would help if you found someone you trust a lot.
Reviewing and correcting errors on the credit report
Always check the credit report constantly, especially when you plan to acquire a new loan soon. If you find erroneous entries, such as undischarged debts that have already been paid off, you can start a dispute to remove them.
That way, it is possible to raise your score to a level acceptable to dealers. For this, you can request the help of a lawyer who can help you to highlight the errors.
Be flexible in your choice of vehicle
Possibly your sight is oriented toward a top-of-the-line model, but with bad credit, it is necessary to be aware that it is impossible to access it. In short, be clear about the available score and base your search on what you can get with it.
The less expensive or popular the chosen car is, the more chances you have to get it despite the bad credit.