Yes, you typically need good credit to lease a car, but it's not an absolute requirement. A credit score of 700 or above is generally considered the threshold for qualifying for the best lease deals with the lowest payments. Leasing companies view applicants with lower credit scores as higher-risk, which can lead to declined applications or significantly higher costs.
Your credit score directly influences the money factor, which is the interest rate on a lease. A lower score means a higher money factor, increasing your monthly payment. Additionally, a less-than-ideal credit history might require a larger security deposit or a co-signer to get approved.
The following table outlines typical lease approval tiers based on FICO credit scores:
| Credit Score Tier (FICO) | Likely Lease Outcome | Key Considerations |
|---|
| 720 and above (Excellent) | Best approval odds, lowest money factor, $0 down payment possible. | Qualifies for all manufacturer subvented lease specials. |
| 680-719 (Good) | High approval odds, competitive rates. | May require a small down payment or security deposit. |
| 620-679 (Fair) | Approval is possible but not guaranteed. | Higher money factor, will require a substantial down payment. |
| 619 and below (Poor) | Very difficult to get approved. | If approved, expect very high payments and large security deposits. A co-signer is often necessary. |
If your credit isn't where you want it to be, you still have options. Consider working with dealerships that specialize in subprime leasing, though be prepared for stricter terms. The most effective strategy is to improve your credit score over 6-12 months by paying down debts and making all payments on time before you apply. Getting pre-qualified through your bank or credit union can also give you a realistic picture of your leasing power without a hard credit inquiry.
