How to Get an Affordable Car Lease with Bad Credit and No Credit
It is never easy to deal with a low credit score. Other people find it difficult to get approved for a new car loan or car lease because they have no credit history. Whatever the case, you can still lease or buy a new vehicle if you have bad credit and no credit.
You might ask yourself: 'Wont I get charged with a high interest rate?' Yes. Lenders need to compensate for the risk factor that comes with bad credit and no credit leasing. If you have bad credit, lenders will look into your payment history and will assess the interest rate based on your credit worthiness. If you have no credit, lenders have no idea on your capability to pay debt. These are just some of the reasons why it is only natural to expect a higher interest rate.
Want to get an affordable car lease, even with bad credit and no credit? Follow these simple tips so you can enjoy low monthly payments and possibly lower interest rates:
1. Improve your credit score. Bad credit buyers need to make some improvements on their credit history even before approaching the dealership. Calculate how much you earn and how much you spend on a weekly basis and make some adjustments to your spending habits. Paying all your debt in a timely fashion is also a good idea.
2. Get a co-signer. This applies to bad credit and no credit buyers. The co-signer should be a relative, friend, or co-worker with a relatively high FICO score. Remember that the co-signer is not part of the car lease or the auto loan. Lenders like the fact that they know who to turn to if you fail to make your car payments.
3. Save money. Making a down payment is a sure way to get lower monthly payments. If you are a bad credit or no credit buyer, you will probably need to pay more. This serves two purposes:
a. Lenders like the idea that you are willing to pay additional money to lessen the risk factor of the car lease or the car loan; and
b. Making a larger down payment will give lower monthly payments, hence cushioning the impact of higher interest rates.
4. Choose a vehicle with the highest amount of rebates and incentives. Simply said, choosing a car with huge cash discounts and marvelous incentives will also give you more savings, whether you have bad credit or have no credit history.
5. No-credit buyers should present their utility bills, phone bills, paycheck stubs, and bank statements to the dealership.
You can still get an affordable car lease even with bad credit and no credit. Choose your new car wisely and keep your credit report free from errors so you can enjoy the lowest lease rates in your town.