Now the question is do your Credits get checked when you lease a car?
Certainly they will go through your credit record. An excellent credit ranking is required to be eligible for a lease.
People with a bad credit due to bankruptcy, a court verdict against them, missed installments on debt or simply being on the verge of financial high risk may find it hard to acquire rental on an automobile as well as obtaining a loan for a car or Van.
Consumers with bad credit ranking, often searching for a suitable loan for them are referred as sub prime borrowers. After facing numerous problems with sub prime loans, the leasing industry recently started to become stricter in signing new contract agreements. Now they strongly require a credit check and guaranteed financing.
So is it impossible to get a car lease with bad credits? Not exactly, there are few things you can do that may end you up in a successful car lease.
Having some cash on hand can help you to lease a car with no credit check. The cheaper the lease is the larger the down payment you have to make. Placing down a few thousand dollars will balance out your credit ranking ratings and should provide you with a lease acceptance.
You can also think about using collateral while leasing a car with bad credit and wanting to avoid the credit check. Having security can give you a nice leverage. Offer other items for security - If you own a house, condo, and another car fully paid for or any other valuable things that add up balance to the agreement. Basically you are saying yes to that the company can take possession of that valuable item if you default on your lease. The more liquid your collateral is, it adds up more value to the deal. This can set you free from evaluating your credit ranking.
Managing a co-signer is one way to avoid your own credit rating assessment. The co-signer will sign off the deal on behalf of you and have their credit score checked instead. If your co-signer has a reasonable credit score and can assure that they are able to handle the transaction, increases your possibility to be accepted.
Try dealing with a car dealer you have already dealt with before. If you have leased or bought a car and paid for it without any inconvenience, then they might get interested to work with you again without running a credit check. There are possibilities that they might even offer you a cheaper rate comparing other companies.
If you have successfully went to another bank in the past and paid off a debt without any delayed payments that may be a good place to start with. Even though your credit is low, having a good record with them can prove quite handy!
While searching for the best lease price be sure to shop around. The bigger dealerships may offer a reduced fee as they have smaller expenses to meet but never be afraid to look into the smaller shops too. Just remember everyone is going through a tough time ….. Even the car dealers too!