How to Lease a Car With Bad Creditby 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="https://www.superbrokers.ca/library/glossary/terms/bad_credit.php">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="http://www.experian.co.uk/">Experian</a>, <a href="http://www.transunion.com/">TransUnion</a> and <a href="http://www.equifax.com/home/en_us">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="http://www.carsdirect.com/">Cars Direct</a>, <a href="http://www.autocreditexpress.com/">Auto Credit Express</a> and <a href="http://www.thesimpledollar.com/go/MyAutoLoanDotCom/1231/">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="http://www.swapalease.com/">Swap a lease</a>, <a href="http://autoleasebreakers.com/blog/leasetrader/" title="LeaseTrader.com">Lease Trader</a> and <a href="http://www.autoleasebreakers.com/" 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