They say that a car lease can kill two birds with one stone: build a credit profile and get you a car. But can leasing a car rebuild your credit score?
Yes. Leasing a vehicle is an excellent way to help improve your credit score. However, it is essential to know that the rebuild will take time, so you should focus on always making your payments on time. Before you know it, your credit score will have recovered by at least a few points.
With a car lease, you can now drive yourself to work, run errands and so much more without compromising your other expenses.
But before you apply for any car finance deals you may come across; it is essential to keep your current financial situation in mind. Because even though a car lease can help improve your credit score, if you’re having trouble paying your bills now, you might not be able to take on the additional expense.
Signing up for a car lease is a big responsibility. That’s why it is essential to take the time to review your current state to make sure you can handle the situation.
So, before making any big decision, take the time to consider the following to ensure that you can afford a vehicle.
When you take out a car lease, make sure that you maintain the payment schedule. The best part is that with a car lease, you can negotiate how much you can pay and how often. You can choose to either pay in weekly or fortnightly intervals, whichever works better for your current income.
In case something happens and you can’t make your payments on time, let your account manager know immediately to avoid the likelihood of a repossession.
With a lease, the vehicle in question is not yours yet. So, you have to ensure that it is clean and well-maintained. You will need to undertake regular maintenance and servicing. You also need to make sure that it is in excellent condition while it is in your possession.
If something happens and you can’t make a payment, make sure to inform your account manager to work out a solution and determine when you can make the payments.
When your lease is up, and choose to purchase the car, you will be happy that you took the time to keep it in good shape.
Another thing to keep in mind is if your employment stable. That’s because, without a job, you might not be able to make the payments for the vehicle. If you’re unemployed, you should first find a way to generate income whether it’s an online job or otherwise.
The goal is to make sure that you have a job. That will allow you to make the deposit and succeeding repayments, and also provide enough for you to live comfortably. Before you apply, make sure you have been in your job for at least a month.
Alpha Finance is a service that caters to those with bad credit. They seek to help them turn over a new leaf.