What Credit Score Is Needed to Lease a Car?

Leasing can be a great way to drive a newer car without the high cost of buying—but your credit score plays a big role in whether you get approved. If your score isn’t perfect, you might be wondering if you even have a chance.

The good news? You don’t need elite credit to lease a car. But your score will influence everything from your approval odds to the monthly payment and upfront costs.

Before you head to the dealership, here’s what you need to know about leasing with less-than-perfect credit—and how to improve your chances of getting approved.

Minimum Credit Score to Lease a Car

There’s no universal credit score requirement to lease a car, but most dealerships work with buyers who have scores in the mid-600s or higher. According to Experian, the average credit score for new car leases was 737. That doesn’t mean you need a score that high—but it gives you an idea of what leasing companies prefer.

Generally, a credit score of 680 or above will give you access to the best lease offers. If your credit score is between 620 and 679, you may still get approved, but the terms likely won’t be as favorable. Once you drop below 620, you’re in subprime territory, and leasing becomes more difficult.

Some dealers do offer subprime leases, but they come with strings attached—higher interest rates, bigger down payments, or more restrictions on mileage and lease terms. At that point, you might be better off considering alternatives like lease transfers or used car financing.

Can you lease a car with bad credit?

Yes, it’s possible to lease a car with bad credit—but it’s not easy, and it usually costs more.

Most traditional lease programs are geared toward people with good to excellent credit. If your score is in the low 600s or below, you’re considered a risk to the lender. That means they’ll look for ways to protect themselves, which could include requiring a cosigner, asking for a large upfront payment, or charging you a higher money factor (interest rate).

You may also be limited to certain vehicle models or less flexible lease terms. Some dealers have in-house financing programs that work with low-credit borrowers, but these aren’t always advertised. You’ll likely need to ask directly or shop around at multiple dealerships.

If your credit is shaky, your best shot is to show strong income, offer a larger down payment, and prepare to negotiate. A subprime lease can still get you behind the wheel, but make sure the monthly payment fits your budget—and read the fine print before signing.

How Credit Score Affects Your Lease Terms

Your credit score doesn’t just determine whether you get approved—it also affects the terms of your lease. The lower your score, the more expensive and restrictive the lease will likely be.

Here’s how it usually plays out:

• Higher money factor – This is the leasing equivalent of an interest rate. A lower score means the lender sees you as a risk, so they charge more to offset that risk.
• Larger down payment – To get approved with bad credit, you might need to put more money down upfront. This lowers the lender’s exposure if you stop making payments.
• Stricter lease terms – You may get approved but be offered fewer miles per year, a shorter lease period, or fewer vehicle options.
• Higher monthly payments – Even if the car price stays the same, a higher money factor and upfront fees can make the monthly cost significantly higher.

A strong credit score puts you in control of the deal. A weak one means you’re working with what the lender is willing to offer.

Tips to Get Approved for a Lease With Low Credit

Even with a lower credit score, you can still boost your chances of getting approved by showing lenders you’re financially stable and responsible. Here are a few ways to do it:

• Show proof of income – A steady paycheck can go a long way. Bring recent pay stubs, bank statements, or tax returns to show that you can afford the monthly lease payment.
• Bring a larger down payment – The more money you can put down upfront, the less risk the dealer is taking. This can make them more comfortable approving your lease.
• Get a cosigner – A cosigner with good credit can help you qualify for a better lease offer. Just make sure they understand they’re financially responsible if you stop making payments.
• Make a security deposit – Some leasing companies will approve lower-credit applicants if they pay a refundable security deposit. It acts as a financial cushion for the lender.
• Provide personal references – If the finance manager is on the fence, a few solid personal or professional references might help tip the scale in your favor.

How to Improve Your Credit Before Applying for a Lease

If your credit score isn’t quite where it needs to be, a few smart moves can make a real difference—especially if you have a few months before applying.

• Pay down credit cards – Reducing your credit utilization is one of the fastest ways to raise your score. Try to get your balances below 30% of your credit limit.
• Dispute credit report errors – Errors on your credit report can drag your score down unfairly. Grab a free copy of your reports and dispute anything that doesn’t look right.
• Use a secured credit card – If your credit file is thin or your score is low, a secured card can help rebuild it. Just be sure to pay it in full and on time every month.
• Avoid opening new accounts – Each new credit application causes a small dip in your score. Hold off on applying for other loans or credit cards until after you’ve secured the lease.

Improving your credit score with these small steps can lead to better offers, lower payments, and less stress when it’s time to lease.

How Lease Transfers Work for Bad Credit Applicants

If you’re having trouble getting approved for a traditional lease, a lease transfer might be a smarter path. Also called a lease takeover, this option lets you assume someone else’s lease for the remainder of their term.

Here’s how it works: someone with a lease wants out early, and instead of paying penalties, they transfer it to you. In many cases, the payments are lower than what you’d get with a new lease—and the approval requirements are often less strict.

You’ll still need to go through a credit check, but it may be easier to qualify since the lease terms are already established. Sites like LeaseTrader and Swapalease make it easy to browse available transfers and compare deals.

Just make sure to check the remaining mileage, wear-and-tear limits, and any transfer fees before signing on. While it’s not a guaranteed solution, a lease transfer can be a solid workaround if your credit score is holding you back.

Is it better to buy a car with bad credit?

If you’ve been denied for multiple leases or the terms don’t make sense, buying a car might be the smarter option. But it depends on your priorities and how you plan to use the car.

Pros

• More financing options – Subprime auto loans are easier to find than subprime lease programs, so your approval odds may be higher.
• No mileage limits – You can drive as much as you want without facing overage fees.
• Potential to refinance – Once your credit improves, you may be able to refinance at a lower rate to cut your monthly payment.

Cons

• Higher monthly payments – Car loans often cost more per month than lease payments, especially with poor credit.
• Long-term commitment – You’re financially tied to the vehicle unless you trade it in or sell it.
• Higher interest rates – Subprime auto loans come with steep APRs, which can add thousands to your total cost over time.

If your goal is to eventually own the car and build equity, buying might make more sense. But if you want lower payments or prefer changing cars every few years, leasing could still be worth considering—if you qualify.

See also: Leasing vs. Buying a Car: Which is Better?

Final Thoughts

Leasing a car with bad credit isn’t impossible—but it does take extra effort, more cash upfront, and some flexibility with your options. If you’re set on leasing, focus on boosting your credit score, comparing multiple offers, and looking into alternatives like lease transfers or cosigners.

Still not getting approved? It might be time to explore auto lenders that specialize in working with credit-challenged borrowers. Check out our list of trusted lenders to get started.

Frequently Asked Questions

Can I lease a car with a 500 credit score?

It’s rare, but possible. Most lenders set a soft cutoff closer to 620, but some dealers offer subprime leases to borrowers in the high 500s or even lower—usually with a large down payment, high money factor, and fewer vehicle options. If you’re at 500, your best bet is a lease transfer or looking into credit repair before applying.

Do car leases check all three credit bureaus?

Most leasing companies check at least one bureau—typically Experian, Equifax, or TransUnion—but not always all three. Some lenders may pull a single report, while others may use a blended score or industry-specific scoring model. If you’re unsure, ask which bureau they’ll use before applying.

Will a lease help me build credit?

Yes, if the leasing company reports to the credit bureaus. On-time payments will help your credit score over time, just like a loan would. But missed or late payments can damage your score quickly, so be sure the monthly cost is manageable before signing.

What is a money factor in leasing?

The money factor is the leasing equivalent of an interest rate. It’s a small decimal number used to calculate the finance charge on your lease. You can multiply it by 2,400 to estimate the APR. The lower your credit score, the higher your money factor will usually be.

Does leasing a car hurt your credit?

Leasing a car doesn’t hurt your credit by itself, but it can if you fall behind on payments. Like any form of financing, missed payments will be reported to the bureaus. That said, having an open, well-managed lease can help improve your credit mix and payment history.