Leasing a car without a credit history can be challenging, but there are other options to get behind the wheel of a new car. It’s possible – if you’re willing to put more money or apply with Cosign. You may also consider replacing your lease. If everything else fails, a bad credit car loan may lead you behind the wheel, so you can start building your credit history for future car leases.
Do you need good credit to lease your car?
According to Experian data, the average credit score for leasing a car was 755 in the fourth quarter of 2024. This score can be categorized into FICO’s excellent credit category or scores of 670 or above. This means that most drivers eligible for leases have strong, established credit scores. This means you may have a hard time qualifying for a car lease without a credit history.
Can I lease my car without credit?
It may be much more challenging, but it may still be possible to lease the vehicle without credit. To qualify, you may need to provide a large down payment or agree to a monthly payment. You may also face higher than average interest rates on your lease, as the lease company may consider you a greater risk than applicants with a strong credit history.
Alternatively, you could ask someone with good credit to cosign from good credit. Having a qualifying cosineer for a lease will help lessors feel more confident that payments will be made entirely on time, but finding a lease company that will allow cosineer can be difficult, so you will work to build a credit history before applying for a lease.
Can I lease my car with poor credit?
You can lease your car with poor credit, but you should expect to pay higher interest rates or money factors than a good credit person. Before you start shopping, you can calculate your lease costs to get ideas about what you pay monthly and overall. This will help you ensure that leasing your car with poor credit is a good option for your budget.
That said, dealers may consider more than just a credit score when applying for a car lease than just an employment history or obligation. This may help you qualify even if you don’t have good trust.
How to get a lease without credit
If you’re just starting out and don’t have a credit history, there are a few options that will help you get a lease on your car. Additionally, once you have obtained a lease, the payment will help you establish a credit, ensuring that your next car lease will give you a better interest rate and lower payment.
I’ll pay more
“If you don’t have a credit history, you should expect to pay a larger down payment and a higher than average interest rate, as the lease is considered a higher risk.”
In addition to reducing the overall cost of car leases and thus monthly payments, the ability to lease your car can be made easier by the ability to exceed the average down payment.
A large down payment demonstrates that you can manage your money well, but it doesn’t cut your costs. The way the lease funding factors are calculated is different from traditional car loan interest rates, so the extra savings on a large down payment will not make a significant difference in the overall cost of a car lease.
Showing proof of income
You can also improve the likelihood of car lease approval without credit by proof that you have enough income to make the payment. This includes providing a copy of your tax return, or providing a wage stub or bank statement to the leasing company. If you can provide solid evidence that you have a consistent and reliable income, then your lender may be willing to work with you despite your lack of credit history.
Get the cosign
Another option for obtaining a lease without credit includes obtaining a Cosigner. A qualified cosiner with excellent credit to excellent credit is responsible for paying the lease if it is not possible. Adding Cosigner will ensure that payments will be made to the lessor regardless of lack of payment history.
“With a Cosigner with excellent credit to excellent credit, you can minimize the overall risk because you are responsible for meeting your monthly lease payments if Cosigner is not possible,” Sexton says. He also recommends that your Cosigner minimum credit score must be 670 or higher to increase your Cosigner’s chances of approval.
Take over another lease
Lee takeover is another way to get a lease without credit. Instead of going directly through the leasing company, you approach the leaseholder about taking over their lease. The lender is still doing credit checks, but they may be willing to work with you.
The process of taking over a lease typically includes:
- Search the lease swap website for available options.
- Full application for leasing companies including credit checks.
- Wait for the leasing company to approve the swap.
- Complete the documents at the leasing company.
- Own your car for the remainder of the lease period.
“Take over the lease of your car and it’s more likely to lease your car without credit, as it helps to minimize the risk to the lender,” Sexton says. “It could also be that you’ll save money on leases of your car over the long term, because taking over your car lease from other lessees could potentially benefit from what they’ve already placed in your car.”
In addition, incentives may be provided that are designed to make the lease more attractive, such as covering transfer fees.
Conclusion
It is still possible to lease your car even if you don’t have a credit history. Before heading to the dealer, save a bigger down payment, find a Cosineer with an established credit history, or take over someone else’s lease, improve your approval chances before heading to the dealer.
If you don’t do any of these options tricks, try building your credit history and working on reapplying on a future date. You can also consider getting a car loan with poor credit to help fund cheaper cars while improving your credit score.
