The process of leasing a vehicle involves passing a credit check. The credit check is completed so you are protected from committing to a contract that you may not be able to afford in the long-term. If the credit check finds that you have bad credit then it can be harder to get a vehicle leasing contract.
In this blog post we have put together some tips to help you improve your bad credit score so you can lease a vehicle.
Pay Bills on Time
The credit score looks at your past finance related behaviour to predict what you might do in the future. By paying your bills on time will help you gain a better credit score which will result in a vehicle leasing contract that you can afford.
Remain Debt Free
For your credit check all credit card balances will be added together to work out your total credit card balance and how much you owe on credit cards. This figure accounts for 30% of your final credit score calculation. It is essential that you keep on top of your credit card balances and remain debt free to improve your credit score.
Only Apply For Credit When Needed
It is a common misconception that by applying for lots of credit cards you will improve your credit rating. Actually this has the opposite effect. Having lots of credit cards will add too many credit searches on your report and it also offers more temptation to build up debt by spending more money.
Limit Credit Searches
When you apply for credit it leaves a ‘footprint’ on your credit report. It doesn’t matter if the credit application was successful or not, the footprint is left on your report. The more footprints you have on your account the more your credit score can be negatively affected. Over time these footprints will fade as searches only remain on your report for 2 years.
Electoral Roll Registration
Credit agencies need to identify the person that is making the request for credit. They do this by checking the electoral roll as this is the best way to confirm your name and address. If you are not registered on the electoral roll it will make it harder to apply for credit as the lender will not be able to confidentially confirm who you are.
These are just some ways that you can go about improving your bad credit score to lease a vehicle. Use these as a starting point and you will soon notice improvements in your credit score.