You don’t need perfect credit to get approved for a lease. But the higher the score, the greater the chances of getting approved. Why so? It’s all a matter of risk to the lessor. If your credit score is on the lower end of the spectrum, you’re perceived as a credit risk. And the lessor wants to protect their financial interests.
The credit score needed to buy a car has a bit more wiggle room. According to Experian, the average score for someone financing a used car at the end of 2017 was 656.
However, car leasing requires a higher credit score compared to car loans, therefore, a lessee should know what the required credit score for a car lease is before leasing a car. The reason behind the higher credit score needed to lease a car is the nature of a car lease.
What credit score is needed to lease a car? Before you drive to the dealership to take home a new car , make sure you know the answer to this question. Your credit score is an important factor when it comes to a lease.
Leasing industry trade groups generally agree that a FICO score of 620 is the average minimum score for approving a lease application. Of course, that’s not to say someone with a lower score can’t lease a car; it just means they will have a harder time qualifying, and will likely pay more for the lease.
You don’t need a certain credit score to lease a car. The average credit score among new lessees has ranged from 715 to 722 over the past five years, according to Experian. But people with credit scores below 580 have taken out roughly 13% of the auto loans and leases over the past decade, according to data from Equifax.
So, what credit score is needed to lease a car? In practice, scores above 620 give you the best shot. However, with some ingenuity and legwork, any score over 550 has the potential to work. To make your leasing experience easy and less expensive, spend time raising your credit score before you go looking for you next ride.
The Minimum Credit Score Needed to Lease a Car Just a few short years ago, it was next to impossible for somebody with less than perfect credit to lease a vehicle. Nowadays, leasing is exploding in popularity.
Your credit score can determine what you pay for auto financing and leasing, credit card rates, mortgages, and car insurance. It can even affect whether or not are able to rent an apartment. In some states, it may even affect whether you get a job or not.