Leasing A Car With Bad Credit In Florida

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Oftentimes, car dealerships will advertise a special offer to lure you in then flip the script once they inquire about your credit score. There’s a reason that some buyers get better deals than others: their credit scores. When you are browsing for a new car lease, one of the main things that can potentially prevent you from getting the best deal is your credit score history. The average credit score when applying for a new lease is 729. Around 680 is the threshold that most dealers use to determine whether you will get a good deal or not. Some companies look beyond your credit score, however, and will consider other options with you. 

If you think you will be buying or leasing a new car in the next few months and want to get a great deal, speak with a credit score advisor knowledgeable advisor. Contact My Credit Repair Clinic for a free consultation. We can help you make astonishing improvements to your credit score. Call today. 

How To Lease A Car With Bad Credit

You can still lease a car with bad credit if you work with a dealership that takes other aspects of your financial situation into consideration. Sometimes, you can get away with a low score, depending on the dealership you choose to work with. 

What Credit Score Do I Need To Lease A Car?

When you have a credit score of 680 or higher, you will have greater ease finding a dealership that will give you a deal and a better monthly payment. Once you’re approved for a lease, you can work with the salesmen to change up your contract. For example, you can ask for $0 down or alter the amount you pay monthly. Unfortunately, if your score is below 680, you will have a much harder time getting the type of contract and deal you want. You will have to pay more out of pocket, place more down, and pay more per month. 

Difficulties of Leasing A Car With Bad Credit

If you have bad credit, you may face obstacles getting the exact car that you want. You may have to choose a cheaper model and settle for smaller monthly payments that the dealership feels you can handle. Sometimes financiers won’t let you lease a new car and instead push to lease or sell you a used one. The average credit score required for a used car is 657. A score below 600 makes it even more challenging to get a car lease. 

If you try to apply for a car lease that is out of your league credit-wise, the following might occur:

  • Your loan application will be rejected.
  • You’ll have to pay a large down payment to make up for the low credit score.
  • The loan will be offered at a higher interest rate, increasing your payments.
  • The dealer will offer you a cheaper car.
  • The dealership will offer a used instead of a new car.
  • You will have to negotiate for a lower price to keep your payments down.

That doesn’t mean it’s impossible to get a car lease with a poor credit score. It simply means that you’re seen as a higher-risk customer and will need to be open to other, sometimes less desirable, options. You may not get the car you want, but at least you can still get a workable lease. If none of these flexible options appeal to you, you will have to continue shopping for the car lease at more forgiving dealerships. It will help if you have a stable income and a savings account. 

Paying a reasonably large down payment tends to be your best option for getting the car you want with a low credit score. This creates a smaller loan-to-value ratio — the cost of the loan compared to the price of the vehicle. A larger down payment can make up the difference and will compensate for the risk taken for accepting an applicant with a low credit score. 

How To Increase Your Credit Score BEFORE You Lease A Car

It can take time to repair bad credit. Credit scores tend to be highly influenced by these five factors:

  • Credit Inquiries
  • Age of the Account(s)
  • Credit Usage Ratio
  • Payment History
  • Credit Mix

Keeping up to date with your credit payments is essential, and the timeliness of your payments is the biggest factor in your credit score. That also means you have to make any payments that you missed. When all of your accounts are in good standing, your credit score should rise within a month. If you have a past-due account you’re having difficulty paying, contact your creditor and see if you can work out a new monthly payment or a settlement amount. This will help you either close that account or get it out of the red zone. 

Avoid getting credit inquiries at too many different places. They can drop your score by up to 10 points, even though they are necessary for a car loan. The rating agencies excuse some inquiries. However, if you get too many credit inquiries in a short amount of time, it may appear that you are shopping for lenders because you’re being rejected. Inquiries will take up to 12 months to drop off your record. 

Try not to open new credit lines. Newer lines of credit can lower your credit score. Older ones can improve them. You can also pay off your credit cards to improve your credit usage ratio. Conversely, maxing out your credit cards lowers your score. If you have a limited credit history and opt to open new credit lines, try to create a mix of credit. This means that you have different types of loans, such as a payment plan on purchased goods, a mortgage, a credit card, and other types of credit lines. 

Find Out More Information

If you still need help leasing a car with bad credit, you can work with the talented team at My Credit Repair Clinic. Call for more information 

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