Your Credit and Credit Score: Important When Leasing a car
Too often you see advertisements on television and online from companies claiming they will get you your credit score and credit history, claiming this information is important for a variety of financial situations. While these advertisements may seem repetitive and annoying, they couldn’t be more correct.
Your credit score is generated looking at several factors of your financial background in both your past and present. When looking at your credit history, a lender pays attention to any loans you have had, as well as the size, length and payoff history of said loans. The lender wants to ensure that you are a reliable borrower and that they will receive their money back.
When the credit bureaus observe your current financial situation, they also look to see how much debt you currently have. They want to make sure you are not overextended by having too many outstanding loans, as the credit score they provide to lenders for individuals play a crucial role in the lending process.
Just as your credit score and credit history play a significant role in the approval process for bank loans, mortgages and other financing, your credit is important when it comes to your car lease as well. The most common credit score ranking is your FICO score. Your FICO score can range from 300-850. When looking at a luxury lease, companies such as BMW, Mercedes-Benz and Lexus look for scores in the 700s and 800s.
Having a combination of a high credit score as well as a strong credit history and income will put you in the position to be considered at a top-tier credit customer, which will provide you with the best lease rate.
Here are a couple tips of smart tips regarding your credit score and leasing:
- If you are looking to check your credit score, many credit cards offer a feature to view your FICO score through your online banking login without needing to login to one of the websites you've seen advertised.
- If your score is not as high as you would like it to be, the Master Auto Leasing team can often work with the car company to get you approved and into a new luxury car. Not only will this put you in the car of your dreams, making your payments every month can boost your FICO score throughout your lease.
Our experts are standing by and ready to assist. We look forward to hearing from you and putting you in the driver's seat of your next car!