Can I Lease a Car With Bad Credit

Can I Lease a Car With Bad Credit?

If you have experienced problems with your credit history in the past, you may be wondering if you are eligible for car leasing. Like a loan or a credit card, vehicle finance is a form of credit and as such, finance companies will investigate your credit history before making a decision on whether to accept your application.

If you’ve been declined finance in the past, been declared bankrupt, have entered into an Individual Voluntary Arrangement (IVA) or have a County Court Judgement (CCJ), it’s likely that your credit worthiness will be adversely affected. Even make late payments on your credit card or loan can impede your ability to borrow in future. So what are your options when it comes to car leasing?

To help clarify your position, Car Lease 4 U has put together a short guide to help explain the rules around applying for car leasing finance, what to do if you’ve failed finance and what your options are when applying for a joint application or using a guarantor.

What Factors Affect Credit Score?

Let’s start with the basics, what actually affects your credit score? There are a number of things that affect your credit score both positively and negatively. Those are;

  • Paying credit agreements off on time
  • Percentage used of available credit
  • Defaults
  • Electoral roll
  • How long you have been at your residence
  • If you have a mortgage
  • Personal loans
  • If you have a credit card
  • How much of your credit card you pay off each month
  • CCJ’s
  • IVA’s
  • How many credit card purchases you have made in the last six months
  • Mail order catalogue purchases
  • Utility bill payments
    Can I Lease a Car With Bad Credit

Can I apply for a joint application?

If you have been declined vehicle finance, other funding options may be available to you depending on your circumstances. Depending on the finance provider, you may be able to apply for joint application with a spouse or a family member. Can I Lease a Car With Bad Credit

Change Your Tyres Not Just Your Clocks

A joint application is when two people apply for car finance together, using both of their personal details in support of their application. In this scenario, both of the applicant’s incomes are combined and both parties are responsible for the monthly payments. Can I Lease a Car With Bad Credit

You can only take out a joint application for car finance with someone who is living at the same address as you (such as a partner or parent) and approval is dependent on the credit scores and incomes of both applicants. It’s also worth noting that if you and your partner spilt up before the end of the contract agreement, the payments must still be made otherwise the credit scores of both parties can be negatively affected. Can I Lease a Car With Bad Credit

Not all finance providers accept joint applications so it’s worth checking with your sales consultant before considering this option. To discuss whether you are eligible for a joint application, call Car Lease 4 U on 028 7122 8822

Of course, if you have anymore questions, we’re more than happy to help. Our friendly and helpful staff are only a phone call away on 028 7122 8822 . Or contact us online here.