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Car Leasing - Even With Bad Credit

If you’re planning to lease a car either through business leasing or personal leasing, you’ll have to go through the process of a credit check.

This is where the finance company sends a request to a credit company to obtain your credit score. If your credit score is below the level required by the finance company, which varies from company to company, then unfortunately it’s likely you’ll be refused car credit and won’t be able to take out a lease.

Car Key with Leasing Tag on White

Pros of leasing a car with bad credit score

• You can end up leasing the car of your dreams, which has all the latest state of the art technologies and advancements. • No matter how low your credit score is, the car that you lease will come with a definite warranty period. Hence if you happen to scratch off the paint or make a dent on it, you don’t have to pay a dime to fix it. • Every timely lease payment that you make each month also has a positive impact on your overall credit score.

credit bad

Options:

Improve your credit rating by taking out a credit card if you haven’t got one, and paying off the balance in full each month so as not to incur any interest charges. Also, try to pay all your bills on time and minimize the number of finance applications that you make. Each application is recorded on your file, and declined applications will further harm your credit rating.

Finally, you could offer to pay a larger initial payment than the usual amount (equivalent to 3 monthly rentals), although this is often mandatory for people with poor credit.

If all else fails, it’s probably best to wait at least six months before you apply again in the hope that your credit score will have improved by then. Unfortunately, most UK finance companies will not accept co-signers or guarantors, although this may be a solution for some companies so be sure to check.