A credit score of about 620 or higher is needed to lease a car, according to Lease Guide. Those with lower credit scores have difficulty finding a bank to give them a lease or have extremely high interest rates. Generally, higher scores lead to lower interest rates.
Individuals should obtain their credit score before applying for a lease because Cars Direct advises that it can indicate inaccuracies that need to be fixed. Knowing their credit score beforehand helps individuals avoid any surprises at the dealership. Generally, people with credit scores above 720 qualify for the best interest rates, while those with scores between 620 and 680 pay a 5 percent higher interest rate on average. A poor credit rating can be helped by making a large down payment or security deposit on the vehicle.
Those who have bad credit or no credit can ask a friend or family member to co-sign for them. Having a co-signer with a good credit history can help to get the lease approved, according to Lease Guide. A co-signer for a lease is not a co-owner of the vehicle unless the co-signer chooses to be. However, a co-signer is responsible for the lease if the original lessee is late making payments or defaults on the loan.