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How to lease a car with no credit history Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by offering interactive financial calculators and financial tools, publishing original and objective content. This allows you to conduct research and compare information for free and help you make sound financial decisions. Bankrate has agreements with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn money The products that are advertised on this site come from companies who pay us. This compensation can affect the way and when products are featured on this website, for example the sequence in which they be listed within the categories of listing, except where prohibited by law. This applies to our mortgage home equity, mortgage and other home loan products. However, this compensation will affect the information we publish, or the reviews that appear on this website. We do not include the entire universe of businesses or financial offerings that could be open to you.



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Peter Cade/Getty Images
3 minutes read Read published March 03, 2023.
Cheryl Knight Written by Cheryl Knight Written by Cheryl Knight






Cheryl Knight

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are passionate about helping readers gain confidence to control their finances by providing concise, well-studied information that breaks down otherwise complex subjects into digestible pieces.









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Having bad credit or no credit even exists as a major obstacle when it comes to leasing a car. However, there are many other alternatives to getting into a new car -- even with less than perfect credit history. You can return to the road by agreeing to a larger down payment, finding a co-signer or the transfer of a lease. The effect of credit on leasing While no credit score, or low credit score isn't necessarily a reason to stop the possibility of leasing, it could need a higher down payment or higher monthly payments overall. This is due in part to the higher interest rates those with a lower credit score qualify for. The average credit score of drivers leasing a new vehicle reached 734 during the quarter-fourth of 2022. That's a two-point increase from the third quarter of 2021 according to . This score falls under the category of "prime" -- between 661 and 780. Three options to get a loan with no credit beginning to get started and do not have credit history, there are some ways to get a lease on a car. Additionally, when you have your lease in place, payments help you establish credit. When you next lease you might receive a lower interest rate as well as lower monthly payments. 1. A larger down payment in addition, it can reduce the total cost of the lease for the duration, and thus your monthly payments the decision to make a larger down payment could help you qualify for the car lease. "Without having any history of credit, you must expect to pay a bigger down payment and an higher interest rate than the average, since your lease will be considered to be more risky," says Steve Sexton, financial consultant and CEO Sexton Advisory Group. Sexton Advisory Group. 2. Find a co-signer A different alternative for obtaining an unpaid lease includes getting an additional co-signer. A qualified co-signer, who must be able to demonstrate good or excellent credit, takes on the responsibility of paying for the lease in the event that you are unable to. Co-signing assures the lender that the loan will be paid in spite of your payment history -or absence of it. "Having a co-signer with excellent to excellent credit can help lower the overall risk since the cosigner is accountable for making the lease's monthly payments in case you're unable to," says Sexton. To increase the chances that this approach will work co-signer must have a minimum credit score of at least 670, says Sexton. Keep in mind that skipping payments could cause problems for your co-signer along with yourself. 3. The option of taking over a lease the lease of an old one is one last method to obtain a lease with no credit. Instead of contacting an individual leasing firm, contact the owner of the lease about . While the car company still checks your credit and lenders will be more willing to collaborate with you as taking over a lease generally occurs when the other person is at risk of being in default. "Taking over a car lease can increase your chance of leasing a car with no credit , as it helps reduce risk for those who are the lender," says Sexton. "There's also the chance that you could save money on a car lease in the end by using this method because when you buy the lease of another leasee, you can gain from what they've put down on the vehicle." There could incentives that are designed to make taking over a lease more attractive and include transfer fees paid. In the end, even with no credit history it's still possible to lease a car. Be sure to boost the chances of being approved prior to heading towards the dealership. You can improve your odds of getting approved for a lease through saving the money for a bigger down payment, finding an individual with a good credit score who is willing to be a co-signer or take the lease of someone else. In the event that none of those options do the trick, start working on building your credit score and applying in the future. Learn more


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Written by Cheryl Knight



The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances with clear, well-researched information that break down complex subjects into bite-sized pieces.






Auto loans editor




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