Many people who are often new to car leasing or who have poor or less-than-good credit often wonder whether they need good credit or a good credit score in order to be able to lease a car of their choice. The short answer is that yes, you do need a good credit score in order to lease a car. However, leasing a car with bad credit is also a definite possibility. If you’re wondering whether you need good credit in order to lease a car, there are several different things you should consider.
How Much Credit Have You Established?
Some people often have a good credit score, but this doesn’t necessarily mean that they can lease a car. Sure, having a few credit cards and paying them off every month will give you a relatively high credit score over time, but during tough times like these where finance companies are holding tight fists, the types of credit that you have used are also important. Have you have previously leased or financed a car? If so, it can definitely help you lease a car again.
Do You Have a Tier 1 Credit Rating?
A tier 1 credit rating for auto leases is generally one that is or exceeds a score of 720. If your credit score is at least 720, you are most likely eligible for the special advertised lease deals that are only available to those with top credit ratings. These special advertised lease deals are offers that car manufacturers and dealerships make available to customers with top credit ratings at various times throughout the year.
Consider Having a Cosigner
As explained above, having a high credit score may not necessarily be enough in order to get approved for a new car lease. If you do not have a variety of different types of credit, and you have only been using credit for a short period of time, it would be a smart idea to have a family member or blood relative act as a cosigner on your automobile lease. Your cosigner should be a blood relative with a long history of using various types of credit who also pays all balances on time and does not abuse the use of credit.
In summary, having good credit is important for qualifying for a good auto lease deal, but it is just as important to have a variety of different types of credit and a well-established credit rating that proves that lenders are willing to make large amounts of credit available to you.
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