There’s not a specific credit score that’s needed in order to qualify for a lease. That’s because the minimum credit score needed to lease a car varies from dealership to dealership.
And why is credit important when you’re looking to lease? It’s important because your credit scores give the dealership an idea of how risky it might be to lend you a vehicle.
Generally speaking, the higher your credit scores, the less risky it is to lend to you. That’s because good credit scores indicate that you have a history of using credit responsibly and paying your loans back on time. Lower credit scores, on the other hand, could signal that you’re a risky borrower. And that could make it harder to qualify for a lease.
Many dealerships look at industry-specific FICO® Auto Scores when considering auto financing applications. Unlike traditional credit scores, FICO Auto Scores range from 250 to 900 and give dealerships “a further-refined credit risk assessment” that’s specifically tailored to auto loans and leases.
And keep in mind that your credit scores aren’t all that a dealership might consider when reviewing your application. Dealerships might consider other financial information too.
The bottom line is that if you’re wondering, “Can I lease a car with bad credit?” the answer is that it’s possible. But the lower your credit scores, the harder it might be to qualify for the lease. And there are more factors you may want to consider before leasing a car with bad credit.
FAQs
You still have to qualify for a lease—just like you do for an auto loan. But what if you don't have a good credit score? Bad credit scores could make it more difficult to lease a car. And if you do qualify for a lease with bad credit, those low scores could affect the terms of your lease.
Can you lease a car with a 500 credit score? ›
It will be difficult to lease a new car with a credit score in the 500 range. If you put down a significant down payment or find a co-signer for your lease, you'll have a better chance of getting approved.
What credit score do you need for a Capital One auto loan? ›
Capital One doesn't share specific credit score requirements. But it does state that to be eligible for a loan or refinancing, you must: Make at least $1,500 per month. Be at least 18 years old.
What credit limit do you need to lease a car? ›
What is a good credit score to lease a car? A score of 700 may be enough to get your foot in the door at most places, but a higher score never hurts.
Is it a good idea to lease a car with bad credit? ›
The bottom line
Although leasing a car with bad credit is possible, you may not receive a competitive lease offer. This could mean a larger down payment, higher monthly payments or leasing a car that isn't your first choice.
What is the lowest score to lease a car? ›
A score between 620 and 679 is near ideal and a score between 680 and 739 is considered ideal by most automotive dealerships. If you have a score above 680, you are likely to receive appealing lease offers. However, if your score is below 660, you still have a 22 percent chance of earning acceptance.
Why was I denied a car lease? ›
Car leasing companies and other lenders will assess your credit score to gauge the level of risk and set lease terms accordingly. If you're deemed a high-risk borrower, the terms of the deal will be less favorable or your application may be denied completely.
What is the minimum income for a Capital One auto loan? ›
You must not have 3 or more open Capital One Auto Finance accounts or an aggregate limit over $100,000 with Capital One. There is a minimum monthly income requirement of $1,500, and your income must be sufficiently greater than your monthly debt obligations and living expenses.
What is the 1 rule in car leasing? ›
When researching the different aspects of a lease deal, you'll come across the “one percent rule.” This method is intended to be used for a 36 month lease and 12,000 mileage allowance and divides the monthly payment you will be making for the lease (without taxes) by the MSRP. A good lease deal will be 1% or lower.
Can I lease a car with 450 credit score? ›
If you have a low credit score, yes, you might still be able to lease — but the lower it is, the more difficult it will be. You might have an easier time getting approved to buy a used car, though. Either way, it's going to be easier, and you will pay less in interest, with a higher score.
If your score is subprime, make a larger down payment. This is good leverage for negotiating a lower monthly. If you have bad credit, but you're financially stable, bring proof (pay stubs and bank statements). This will help to reassure the dealership that you're in a position to consistently make your payments.
Is it harder to lease or finance a car? ›
You may find it more difficult to be approved for a car loan than a lease. The down payment and credit score requirements are often higher for loans than for leasing, and the monthly payments can be higher too.
What credit score is needed to buy a car without a co-signer? ›
What credit score is needed to buy a car without a cosigner? People with prime credit scores of 661 or higher likely don't need an auto loan cosigner.
What credit score is needed to lease a Tesla? ›
Tesla doesn't list a minimum credit score to be approved for financing, however, typically your shot of being approved will increase if your score is in the 600s or better. It could be possible with a 500 score still, though not as likely.
Can I buy a car with a credit score of 500? ›
A credit score of 500 is considered poor credit, and lenders will likely see you as a higher risk borrower. You might also have a higher interest rate and may need to provide a larger down payment to finance a car.
Can you lease a car with 300 credit score? ›
Credit scores range from 300 to 850. A rating under 620 is classified as “subprime”. The minimum credit score required for leasing most vehicles is 700, generally speaking.
