Car leasing with bad credit

Are you worried about your credit score? Have you been refused for finance before? If you think you could have a bad credit record read our helpful guide to find out if car leasing could still be for you.

Leasing a vehicle is a form of finance so, as with all lending products, you will need to pass a credit check before approval. If you have struggled to obtain credit in the past you may also experience difficulty leasing a vehicle. Don't worry though, if in doubt it's always worth speaking to one of our account managers to confirm your situation and work out your options.

What credit rating is needed to lease a car?

As each credit reference agency uses a different system it's impossible to put an exact figure on the credit score required to lease any particular vehicle. However, there are various factors worth bearing in mind which could be taken in to account when assessing your creditworthiness:

Missed payments

Any bills or regular payments which have not been completed in the past could adversely affect your credit rating. Don't worry if you've made errors though, your credit check only looks at the last six years so mistakes won't last forever.

CCJs, IVAs or bankrupcy

Should you fail to keep up payments on a debt, the creditor may look to have a County Court Judgement (CCJ) enforced on you, this will go on your credit file. Similarly if you are having difficulties with debts you may look to an Individual Voluntary Arrangement (IVA) or bankruptcy to help your situation, these will also affect your creditworthiness.

Length of time at current address

Stable living arrangements for a lengthy period of time have a positive influence on your credit rating, whereas in contrast moving regularly can be detrimental to your score.

Electoral registration

Registering to vote is the simplest way to improve your credit rating. Not being registered or having a record at the wrong address can have a negative impact on your score so it pays to be sure that you are up to date.

What can I do if I fail my credit check?

It's important to remember that there is no such thing as a credit black list, each agency will see things differently so don't be disheartened if you're rejected for credit. If the funder doesn't accept your application for finance then your account manager will speak to you to discuss your options.

Sometimes credit reference agencies can make mistakes if they hold incorrect information about you, if you have reason to think this could be the case you can appeal the decision. You will need to apply for a copy of your credit file, which can be done with Experian, and collect supporting information for your claim like old bank statements.

Always remember there are plenty of steps which could increase your chances of obtaining credit that are worth considering. Head to https://www.moneyadviceservice.org.uk/ if you'd like to find out more about how to improve you credit rating.

Is it possible to make a joint application?

If your credit rating alone is not sufficient to be granted finance then in some cases it can be possible to make a joint application with a spouse or family member. Bear in mind that only a select number of funders allow joint applications so this option may not be available for your chosen vehicle or circumstances.

It's important to note that this route is only available if both applicants are living at the same address. To make a joint application both parties must submit their details so that their credit worthiness can be taken in to account and combined. If you'd like to find out more about making a joint application speak to one of our account managers today.

Can I use a guarantor?

If an applicant's credit rating is not sufficient for their finance application, one further option could be to apply with a guarantor, this person would be required to take on the finance agreement in the event that the main applicant could no longer make the payments. The guarantor would usually need to be a family member and have a very good credit rating.

Generally speaking, it is only in rare cases that funders will allow applications supported by a guarantor. However, it is always worth speaking to one of our account managers about your options as funders will look at each case individually on its merits.

Can someone lease a car for me?

In cases where a finance applicant has very little chance of obtaining credit they might consider having someone apply for finance on their behalf, however this is not allowed by funders under any circumstances. Failing to indicate that the driver will not be the person taking out the lease contract is against the law and anyone involved with this kind of deception could be charged with fraud.

Any more questions?

If you are still not sure whether you're eligible for vehicle finance please drop us a line today, we'd be happy to discuss your options in more detail.

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