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How does leasing a car affect your credit score?
I don’t have great credit and would rather not buy a car. I do need one, though, so I was thinking of leasing. How will leasing a car affect my credit score?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Leasing a car
can be a great choice if you need a new car but don’t want to commit to car ownership. When you first lease a vehicle, there will be a dip in your credit score because you have to apply to get approved for a lease. If you continuously pay your monthly bills for your lease, those steady payments will improve your credit score.
Talk with the dealership you’re leasing from and make sure they report your lease payments because this can help you rebuild your credit.
When you lease a vehicle, you will need more coverage than
state insurance minimums
. Higher coverage doesn’t mean you have to break the bank, though.Try using the number one rated car insurance app in the Apple store,
Jerry
. Jerry compares personalized quotes from the top 50 insurance companies, including Nationwide, Travelers, and Allstate, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance! View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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