Does leasing a car help your credit score?
Just like taking out a loan or financing a car purchase, the monthly payments that you make when leasing a vehicle will be taken into account when calculating your credit score. This couldhave a positive or negative effect, depending on whether you make your monthly payments on time.
Does a car lease appear on a credit report?
Any monthly payments you make as part of a hire agreement will appear on and affect your credit report. As car leasing involves monthly payments over a period of time, it will count towards calculating your credit score.
Does a car lease improve your credit?
Making monthly payments on time can help improve your credit score by proving your capability to meet your financial obligations. So, if you take out a car lease and are able to keep up with your bills each month, this will have a positive effect on your credit score
Can a car lease make my credit score worse?
Leasing a car is a serious financial obligation, and if you are unable to make your car lease payments on time, as with a loan or any other repayment scheme, this will negatively affect your credit score.
Do you need a credit check to lease a car?
All reputable leasing companies run credit checks on prospective customers. So, you will need to be upfront about yours when looking to lease.
If you do have issues with your credit score, there are other ways to assure your leasing company you will be able to pay. Find more information on leasing with bad credit-history here.
More info on car leasing and credit
As with any financial obligation, it is important when leasing a car that you choose an affordable option and plan everything out.
If you have any questions at all about affording your car lease, the role of your credit score or how leasing a vehicle will effect it, just jump on the phone to our customer services team, who can give you information tailored to your personal circumstances.