Does Leasing a Car Build Credit?

BMW 7 Series Parked In Front of Home


Does leasing a car build your credit? In short, yes! Leasing a car can help build your credit as long as you’re making payments on time. Learn more about car leasing, credit-building tips, and more with our finance team at Rusnak Auto Group in Los Angeles today and you’ll be one step closer to better credit and a newer luxury model.

Can I Lease a Car with Bad Credit?

The answer is yes, you can lease a car with bad credit. Even with no credit, you’ll have a good chance of being able to get behind the wheel. However, keep in mind that the rates and available options vary by lender. For a car lease, a credit check is required, so having good credit can help you get the best lease deal possible. With bad credit, you can typically find a lease with lower monthly payments that can help you build up your credit score.

How to Improve Your Credit Score

Now that you have answers to the question, “Does leasing a car build credit?” you can opt for a car lease to start building better credit. If you’re looking to boost your credit score before you apply for a lease, here are a few ways you can do that:

Check Your Credit Reports

Make sure your credit reports are as factual as possible. Identity theft and mistakes can happen. It’s best to double check your credit by obtaining a report from all three major credit bureaus.

Assess Your Debts

Make a list of all of your debts to determine what you owe. Two determining credit score factors are:

  • Your debt to credit ratio: How much available credit you have vs. how much you have actually charged. Ideally, you want to keep your credit card charges under 30% of the available balance every month. 
  • Number of cards with balances: The more cards with balances, the lower your score.

Create a Payment Plan

Create a payment plan to tackle your remaining balances. Start with paying off smaller debts, then work to pay off larger sums.

Open a Credit Card

If you’ve had trouble establishing credit, it might be a good idea to apply for a credit card. Opening a card can help you establish credit as long as you keep the balance under 30% of your limit and you pay your bills on time every month.

The quickest way to build your credit is to use the card on smaller purchases and paying them off immediately. If you don’t qualify for a regular credit card, consider a secured credit card. This type of card has a small limit and usually requires an initial deposit of up to a couple hundred dollars to open.

Minimize New Credit Applications

If you decide to apply for a credit card, or a loan, you’ll want to consider applying within a few days or each other because lenders tend to do a hard inquiry of your credit history and this can impact your score.

Learn More with Rusnak Auto Group

Ready to lease a car to build your credit? Contact our team today! Our finance experts can help walk you through the process to get the deals you’re looking for. We also offer financing specials and lease deals to help you save. Explore your options today, then apply online to get the process started.

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

• Los Angeles, CA

Get Directions
Rusnak Auto Group 34.146267, -118.1575295.