How to Lease a Car With Bad Credit

by Brooke Pierce
<p>When leasing a car, you will encounter problems if you have a low credit score and a spotty <strong>credit history</strong>. Most of the time, you will have to pay a high interest rate and make a large down payment. You should inspect your <strong>credit report</strong> regularly to ensure that it is accurate. Leasing a car with <strong>bad credit</strong> requires careful shopping to identify a lender that will give you the lowest rates possible. <br></p>

Examine Your Credit

<p>Identify why you have bad credit and how bad it is. <a href="">Bad credit</a> generally results when you do not make payments on time or when you have defaulted on a loan. It shows the lender that you pose a risk for missing payments or even defaulting on a loan. When applying for a lease with bad credit, your dealer and also your finance company will ask for your <strong>credit score</strong> or credit history report from a credit reporting agency like <a href="">Experian</a>, <a href="">TransUnion</a> and <a href="">Equifax</a>.</p>

Identify Low-Credit Lenders

<p>Try to secure a preapproved loan online. A majority of conventional lenders normally refer borrowers in your situation to low-credit lenders. These institutions specialize in lending to borrowers who have poor credit. Examples are <a href="">Cars Direct</a>, <a href="">Auto Credit Express</a> and <a href="">My Auto Loan</a>. They provide loans to people who have less-than-perfect credit. Interest rates are higher for people with low credit.</p>

Consider Lease Takeover.

<p>Take over a lease of a car from an individual who wants to get out of her lease. This is called a <strong>lease transfer</strong>. Though your credit will be checked, the requirements are not as strict as those for a new lease. There are online companies that assist in matching the lease sellers with the buyers, such as <a href="">Swap a lease</a>, <a href="" title="">Lease Trader</a> and <a href="" title="get out of a car lease early">Auto Lease Breakers</a>.</p>


Takes steps to improve your credit, such as:

  • Pay off large credit card balances.
  • Do not file  bankruptcy; a bankruptcy can affect your credit for up to 10 years.
  • Pay your bills on time.
  • Get a cosigner or car loans

About the Author

Based in Amsterdam, Brooke Pierce has been writing automotive-related articles since 2012. She holds a Bachelor of Science in automotive engineering technology from Ferris State University, Big Rapids, MI.

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