At Keyes Lexus, drivers often ask us if a Lexus lease can help improve their credit score as a new car loan does. Leases can help rebuild credit, but there are some downsides that may make financing a better option for you and your finances.
Upsides of Leasing
Leasing a car counts as an installment loan, meaning it goes on your credit report and can help you raise your score over time. If you make regular payments, they will be reported to the three credit rating bureaus and will stay on your report for ten years.
Downsides of Leasing
However, leasing can negatively impact your credit score, too. Just like with a loan, missed payments on your lease will appear on your credit history. The new contract also counts as a new open account, so your credit score will take a minor and temporary hit when the lease begins. You may also see a slight impact at the end of your lease, as it is reported to the credit bureaus as a closed account.
Is Leasing the Best Option?
Leasing can improve your credit score and help build a stronger credit history, but many leases have high credit requirements to begin with. If you want to rebuild your credit, you may not qualify for standard lease offers. Because loans are more accessible to buyers at all levels of credit health, it may be an easier path toward improving your credit.
Find Your Next Lexus Lease at Keyes Lexus
Applying for a Lexus lease can help your credit score while still getting behind the wheel of the latest, most exciting models. Talk to our team to find out if leasing can help improve your credit, and then take a new Lexus car for a test drive today!
