As reported by some of the top credit rating bureaus, the average credit score for persons applying to lease a new car was 722. This is a pretty good credit score, however, the credit score needed to lease a car is 680 and above, this is an above average credit score and would ensure that you are on your way to qualify.
Payments on leasing a car are normally cheaper than those for loan payments to purchase a car, this is due to the fact that you are only paying for the rights to use the car for a predetermined period of time, usually a few years and not for the lifetime ownership of the car. Your credit score is still important and will help you gain access to the best lease options and rates on the market, you may even have to pay less on signing and a lower monthly repayment than others with lower credit scores.
It all depends on the dealership and the market conditions at the time you are seeking to lease the car. That being said, to state a minimum credit score would be erroneous, however, it goes without saying that if you have a good to excellent credit score, your chances of qualifying to lease a car greatly increases.
The report from the leading credit bureaus stated that approximately 22 percent of those applying to lease a car and were granted approval had credit scores 660 and below. This states that these individuals had other factors that made them eligible in the eyes of the creditors, like salary, no debt and track record of handling debt, existing payment obligations and maybe a significant deposit at signing etc.
A credit score below 620 usually signals that leasing a new car is out of your reach and it may be time to seek a second hand or used vehicle as a leasing option or searching for a below par dealer that would be willing to take the risk in leasing a vehicle to you.
You should also take into consideration that individuals with lower credit scores tend to pay more in fees due at closing and monthly repayments.
Improving your credit score should always be on the top of your list when looking to make any kind of credit transaction, especially when seeking to apply for a loan.
So before you even call a dealership, check with the credit reporting bureaus, confirm that your current score is up to date and accurate, pay all your bills on time and in full if you can, a late payment, even one, can result in an increase payment, reduce your credit utilization ratio, which is the difference between your outstanding account balance and your total credit limit.
No one says you need to have a prefect credit score to qualify for leasing a car, however, you should be cognizant of the fact that most people have a credit score needed to lease a car of no less than 680. The better your score the better your changes.