If you want a good interest rate on your car lease, you need to have a credit score above 680. Credit scores are ranked between 300 and 850. If you have a credit score lower than 680, you may still be able to secure financing on a lease, but the loan will be more expensive. With a credit score of under 500, you may not be able to get a lease at all.
Options for Those with Low Credit Ratings
If you're below the 620 to 640 range, you are classified as subprime, which can affect your ability to get a loan. Even if your credit rating falls into the sub-prime range, you still have options to make your application more attractive. One option is to offer a larger down payment so the lender is taking less of a risk. You can also speak to a sub-prime lender who deals with loans for those with bruised or non-existant credit ratings. Be prepared to pay a higher interest rate on your loan if you go this route.
Lease Takeover and Home Equity Loans
If you're having trouble saving a down payment or don't like the idea of paying a higher interest rate, consider taking over a leased car. You can have a leave transferred to you from someone else and perhaps pay less for doing so. You may even receive cash from the current lease owner to take it over.
Other options can secure the financing without the need for a car loan. If you own your home, for example, you may be able to borrow against the equity you've built up in your house to buy your car outright.
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