Q:

What are the credit requirements for leasing a car?

A:

A credit score of about 620 or higher is needed to lease a car, according to Lease Guide. Those with lower credit scores have difficulty finding a bank to give them a lease or have extremely high interest rates. Generally, higher scores lead to lower interest rates.

Individuals should obtain their credit score before applying for a lease because Cars Direct advises that it can indicate inaccuracies that need to be fixed. Knowing their credit score beforehand helps individuals avoid any surprises at the dealership. Generally, people with credit scores above 720 qualify for the best interest rates, while those with scores between 620 and 680 pay a 5 percent higher interest rate on average. A poor credit rating can be helped by making a large down payment or security deposit on the vehicle.

Those who have bad credit or no credit can ask a friend or family member to co-sign for them. Having a co-signer with a good credit history can help to get the lease approved, according to Lease Guide. A co-signer for a lease is not a co-owner of the vehicle unless the co-signer chooses to be. However, a co-signer is responsible for the lease if the original lessee is late making payments or defaults on the loan.

Learn More

Related Questions

  • Q:

    What are MOHELA student loans?

    A:

    MOHELA student loans are student loans serviced by the Higher Education Loan Authority of the State of Missouri, also known as the Missouri Higher Education Loan Authority. MOHELA does not give loans to students directly, but rather administers loans such as Federal Perkins Loans, Federal PLUS Loans, Federal GradPLUS Loans, Federal Stafford Loans, federal student loan consolidation and private alternative loans.

    Full Answer >
    Filed Under:
  • Q:

    What is the meaning of ex-factory price?

    A:

    Ex-factory price refers to the cost a manufacturer charges for a distributor or other buyer to purchase products directly from the source. This is a quote for the goods alone. It does not include shipping, handling or taxes. This practice is common when working with raw materials for secondary manufacturing.

    Full Answer >
    Filed Under:
  • Q:

    What are some methods for paying back student loans?

    A:

    Methods for paying back student loans include making a payment plan, making payments before graduating, loan consolidation and enrolling in auto-debit. There are also established programs that can help a student pay back debt and employers who include student loan repayment as part of a benefits package.

    Full Answer >
    Filed Under:
  • Q:

    Can someone assume your VA loan?

    A:

    A VA loan can be assumed by any individual who meets the lender's requirements as if he were applying for a new loan, according to Bankrate. Therefore, the buyer must use the original lender when assuming the loan.

    Full Answer >
    Filed Under:

Explore