Leasing with bad credit

Have you been refused a car lease? Chances are you have less flawed credit

history. Know what’s involved and what you can do to build good credit

history.

Credit score is a measure of your credit worthiness used by leasing agents

to determine whether you are eligible for a lease. You credit score is

based on your past and present credit history, and can range anywhere from

350 to 850. A measure above 720 is considered a “prime score” and will

land you the best rates. If you are below 640, then you are “sub-prime”

and will be considered bad rating by the bulk of leasing agents. This is

where all the trouble in getting that lease comes from.

Ask for your FICO Credit Score from the Fair Isaac Corporation (FICO)

which details your credit score held by all three leading credit score

agencies in the country. Compare the three credit scores and determine if

any agency is holding erroneous credit data about you. Contact the

reporting agency and getting corrected.

If there are no mistakes in your credit report, then you can take some

steps to maximise your score to go above the threshold of 640. Pay your

bills on time and pay down any credit card debts you have. Do not take any

new accounts as this might increase the likelihood of you getting into bad

credit thus worsening your credit score.

Leasing and your credit score.

Your credit score is part of the leasing decision. When you apply for a

lease, your lease company will typically look at your credit score to

decide whether you to approve the application.

The leasing contract stipulates that you make regular, monthly payments

over your lease term. The credit score you lease company requests

identifies how likely you are to make such payments. It is simply a number

calculated according to a model that takes into account your payment

history, any amounts you owe and credit currently in use.

It is very important to keep a good credit-score, usually above 700, to

qualify for a lease or any other lending decision. Start by ordering your

credit report from Fair Isaac Corp, the company that creates your credit

score. If erroneous data is held about you, then contact the creditor

responsible and get such information corrected.

Your payment history is the single most important factor in determining

your credit score, so get in the habit of paying everything you owe on time

and keep the balances low in your credit cards.

Leasing with bad credit

Have you been refused a car lease? Chances are you have less flawed credit

history. Know what’s involved and what you can do to build good credit

history.

Credit score is a measure of your credit worthiness used by leasing agents

to determine whether you are eligible for a lease. You credit score is

based on your past and present credit history, and can range anywhere from

350 to 850. A measure above 720 is considered a “prime score” and will

land you the best rates. If you are below 640, then you are “sub-prime”

and will be considered bad rating by the bulk of leasing agents. This is

where all the trouble in getting that lease comes from.

Ask for your FICO Credit Score from the Fair Isaac Corporation (FICO)

which details your credit score held by all three leading credit score

agencies in the country. Compare the three credit scores and determine if

any agency is holding erroneous credit data about you. Contact the

reporting agency and getting corrected.

If there are no mistakes in your credit report, then you can take some

steps to maximise your score to go above the threshold of 640. Pay your

bills on time and pay down any credit card debts you have. Do not take any

new accounts as this might increase the likelihood of you getting into bad

credit thus worsening your credit score.