Can I Lease With A Bad Credit Score?
You may have terrible credit, but the events that lead to your awful credit are in the past. You are now on the road to financial responsibility and you know you can afford to lease a Lexus. However, there are things you can do to prepare your credit score to lease a Lexus.
The Benefits of Leasing
Leasing is less expensive than financing a car. Essentially, you are renting a car, but also have the option to purchase it after the lease is over. If you would like to always have a new car, leasing a Lexus is the way to go. You will not have to worry about:
- Frequent repairs
- Outdated technology
- Damage that accumulates overtime
Instead, you will always have one of the newest Lexus. With a leased car, even if you have a poor credit score, you will come with a warranty that will pay for damage done to your car.
Knowing Your Credit Score
When leasing a car, you will want to know your credit score and the specific reasons for why it is so low. For instance, you will want to know the derogatory marks that will cause your credit score to be lower.
The Importance of a Large Down Payment
Save more money before leasing a Lexus. While you do want to have the smallest down payment possible for a lease, you will also want to make sure that your down payment is large enough to qualify for a lease. You will likely need several thousand dollars. You will also expect to pay a higher interest rate.
Lease Transfers are an Option
When you are having a difficult time obtaining a lease, one option is to pursue a lease transfer. A lease transfer is for those who would like to get out of a lease. While you will need a credit check, the requirements for obtaining a lease under a lease swap are less strict.
Persuading the Bank
You may be able to enter a special agreement with the bank in which you can make a payment every week or every other week to persuade the company that you will be making your payments on time. You may also have an ignition interrupter and a GPS installed to allow the bank to shut off your engine.
Leasing a car is one great way to improve your credit score. Each time you make a payment on time, this will help your credit score. This will make it easier to obtain financing in the future.