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You don’t technically need good credit to lease a car, but it helps significantly. Most dealerships require a minimum credit score of around 620, though the average lessee has a score of 753[1]. Scores of 680 or higher typically qualify for favorable terms, while scores above 720 unlock the best rates and lowest monthly payments[2]. Leasing with bad credit is possible, but you’ll likely face higher down payments, steeper interest rates, and more limited vehicle choices.
Credit Score Ranges and Lease Approval
Understanding where your credit score falls helps you know what to expect[3]:
| Credit Tier | Score Range | Lease Approval Likelihood | Typical Terms |
|---|---|---|---|
| Super-prime | 720+ | Very high | Best rates, $0 down options |
| Prime | 660-719 | High | Competitive rates |
| Near-prime | 620-659 | Moderate | Higher rates, larger down payment |
| Subprime | 580-619 | Low | Limited options, higher costs |
| Deep subprime | Below 580 | Very low | Usually requires cosigner |
The average credit score for new car leases in Q1 2025 was 753[1]. This doesn’t mean you need a 750+ score—it simply reflects that people with higher credit tend to lease more often because they qualify for better terms.
What Credit Score Is Ideal for Leasing?
A score of 680 or higher gives you the best shot at favorable lease terms[2]. Here’s how different scores affect your leasing experience:
720 and Above (Super-Prime)
This is the sweet spot. Dealerships actively compete for customers with super-prime credit. You’ll qualify for:
- The lowest money factors (lease interest rates)
- $0 down payment options
- Access to all manufacturer lease specials
- Maximum negotiating leverage on price
According to Experian data, super-prime customers pay significantly lower monthly payments than those with subprime credit[4].
680-719 (Prime)
You’ll still get good lease deals at this level. Most manufacturer lease specials remain available to you. Expect competitive rates, though not always the advertised promotional rates reserved for top-tier credit[2].
620-679 (Near-Prime)
Leasing is definitely possible, but your options narrow. You may face:
- Higher money factors (meaning higher monthly payments)
- Required down payment of $2,000-3,000
- Fewer vehicle choices
- Less room for negotiation
Approval rates for scores between 620-659 drop to around 22%, according to industry data[3]. Not impossible, but significantly harder than prime credit.
Below 620 (Subprime)
Leasing becomes challenging but not impossible. Capital One notes that “leasing a car when you have bad credit is possible, but it may be harder to qualify for the best terms”[5]. You’ll typically need a cosigner with good credit, a substantial down payment, or both.
How Credit Score Affects Your Monthly Payment
Your credit score directly impacts the money factor—the lease equivalent of an interest rate. Here’s how that translates to real dollars[4]:
| Credit Tier | Average Monthly Payment (New Car) |
|---|---|
| Super-prime (781+) | $594 |
| Prime (661-780) | $601 |
| Near-prime (601-660) | $606 |
| Subprime (501-600) | $606 |
The difference between super-prime and subprime may look small per month ($12), but it adds up[4]. Over a 36-month lease, that’s $432 extra. What’s more, subprime lessees often face larger required down payments that don’t show in monthly payment comparisons.
If you’re considering financing a car versus leasing, the credit requirements are similar, though financing may offer slightly more flexibility for lower credit scores.
Leasing vs. Buying: Which Is Easier With Bad Credit?
Buying a used car is generally easier than leasing when you have bad credit[6]. Here’s why:
| Factor | Leasing | Buying |
|---|---|---|
| Minimum credit typically needed | 620 | 500-580 |
| Subprime approval rate | ~22% | ~40%+ |
| Down payment flexibility | Limited | More flexible |
| Vehicle age options | New only | New or used |
| Lender options | Primarily captive finance | Banks, credit unions, buy-here-pay-here |
Used car loans have more lender options, including subprime specialists who work with challenged credit. Lease financing typically flows through manufacturer captive finance companies (like Toyota Financial, Honda Financial) that have stricter requirements.
That said, leasing may make sense for bad credit borrowers who need a reliable new car with warranty coverage. The payment may be lower than financing the same vehicle—even with a higher rate.
How to Lease a Car With Bad Credit
If your credit score is below 680, these strategies improve your chances[5][7]:
Bring a Cosigner
A cosigner with good credit (700+) dramatically improves your approval odds. The cosigner becomes equally responsible for the lease, so they’re essentially lending you their creditworthiness. Many parents cosign for adult children, and spouses frequently cosign for each other.
Make a Larger Down Payment
Putting more money down reduces the leasing company’s risk. While prime credit customers can often lease with $0-1,000 down, subprime lessees may need $3,000-5,000 to get approved[5].
Choose a Less Expensive Vehicle
Dealerships are more likely to approve a lower credit score for a $25,000 compact car than a $60,000 luxury SUV[4]. The smaller the monthly payment and residual value risk, the more comfortable the leasing company.
Look for Special Programs
Some manufacturers have programs specifically designed for credit-challenged customers[7]. These programs may offer:
- Lower approval thresholds
- First-time buyer incentives
- Recent graduate programs with credit leniency
Ask the dealership’s F&I manager about all available programs before assuming you won’t qualify.
Shop Multiple Dealerships
Different dealerships work with different lenders, and approval criteria vary. Getting rejected at one dealership doesn’t mean you’ll be rejected everywhere. Just be mindful that multiple hard credit inquiries within a short window (typically 14-45 days) count as a single inquiry for scoring purposes.
Does Leasing a Car Build Credit?
Yes, a car lease can help build your credit—assuming you make payments on time[2]. Leasing companies report to credit bureaus just like traditional lenders. Each on-time payment contributes positively to your payment history, which accounts for 35% of your FICO score.
The flip side? Late payments hurt your credit. And if you default on a lease, the damage is severe—the leasing company will repossess the vehicle and potentially sue for the remaining balance.
If you’re rebuilding credit, consider whether leasing makes sense versus other credit-building strategies. A lease represents a significant financial commitment for 2-3 years.
Understanding whether you need full coverage insurance on a financed car matters for leases too—lessors require comprehensive coverage, which adds to your monthly costs.
What Lenders Look at Beyond Credit Score
Your credit score isn’t the only factor. Leasing companies also evaluate[2][5]:
- Income and employment: Stable income that comfortably covers the payment
- Debt-to-income ratio: Total monthly debts versus monthly income
- Credit history length: How long you’ve had credit accounts
- Recent credit activity: Too many new accounts raises red flags
- Previous auto loan history: Past car payments matter most
- Bankruptcies or repos: Major negatives that stay on your report for years
Someone with a 650 credit score, stable 10-year job, and perfect previous auto loan history may get approved over someone with a 680 score, new job, and no auto credit history.
How to Improve Your Credit Before Leasing
If your score isn’t where it needs to be, consider waiting and improving it first[2]:
- Pay down credit card balances: Utilization (balance vs. limit) heavily impacts scores. Getting under 30%—ideally under 10%—helps quickly.
- Don’t miss payments: Payment history is the biggest factor. Set up autopay on everything.
- Don’t open new accounts: New credit inquiries temporarily lower your score.
- Check your credit report for errors: Dispute any inaccuracies through the credit bureaus.
- Become an authorized user: Being added to someone else’s long-standing account with perfect history can boost your score.
Credit scores can improve significantly in 3-6 months with focused effort. Moving from 640 to 680 could save you hundreds on a lease.
Key Takeaways
- No strict minimum exists, but 620 is the practical floor—most dealerships won’t approve leases below this threshold without a cosigner or major down payment[3]
- The average lessee has a 753 credit score, meaning most people who lease have good to excellent credit, though this doesn’t mean you need that score to qualify[1]
- Scores of 680+ get favorable terms while scores of 720+ unlock the best rates, $0 down options, and maximum negotiating power[2]
- Bad credit leasing is possible but expensive—expect larger down payments, higher monthly payments, and more limited vehicle choices[5]
- A cosigner dramatically improves approval odds if your credit is below 680, as the leasing company evaluates both applicants’ creditworthiness[5]
- Consider improving your credit first if you’re on the borderline—moving from 640 to 680 can save hundreds over the lease term and expand your vehicle options[2]
FAQs
What is the minimum credit score to lease a car?
Most dealerships require a minimum credit score of around 620 to lease a car[3]. There’s no universal minimum since each leasing company sets its own requirements, but scores below 620 typically require a cosigner or very large down payment to get approved. The average lessee has a score of 753, so scores in the 680+ range put you in a comfortable position for approval with reasonable terms.
Can you lease a car with a 600 credit score?
Leasing with a 600 credit score is difficult but possible[5]. You’ll likely need a cosigner, substantial down payment ($3,000-5,000), or both. Expect limited vehicle options—dealerships may only approve you for economy cars rather than luxury vehicles. Your monthly payment will be higher due to a worse money factor, and you may need to shop multiple dealerships since approval criteria vary.
Is it easier to finance or lease a car with bad credit?
Financing a used car is generally easier than leasing with bad credit[6]. Used car loans have more lender options, including subprime specialists and credit unions that work with challenged credit. Leasing typically requires higher credit scores because the lease structure creates more risk for the leasing company. That said, leasing payments are often lower than financing the same vehicle, which may help your debt-to-income ratio.
What credit score do you need to lease a car with no money down?
Zero-down leases typically require super-prime credit scores of 720 or higher[3]. Manufacturer lease specials advertising “$0 due at signing” almost always carry fine print requiring top-tier credit for those terms. With scores below 700, expect to put at least $1,000-2,000 down. Scores below 680 usually require $2,000-5,000 down, even if you negotiate everything else favorably.
Does leasing a car hurt your credit?
Leasing a car can help or hurt your credit depending on how you manage the lease[2]. On-time payments build positive credit history, contributing to payment history which represents 35% of your FICO score. Late payments damage your credit. The initial credit inquiry causes a small temporary dip (typically 5-10 points). The new account temporarily affects your average account age. Overall, a well-managed lease improves credit over time.
References
- Self Financial. (2025). What Credit Score Do You Need to Lease A Car? https://www.self.inc/blog/credit-score-to-lease-car
- SoFi. (2025). What Credit Score Do You Need to Lease a Car? https://www.sofi.com/learn/content/credit-score-needed-to-lease/
-
Leases a Car. (2024). Determining the Credit Score Needed to Lease a Car.
Determining the Credit Score Needed to Lease a Car
- American Express. (2024). What Credit Score Is Needed to Lease a Car? https://www.americanexpress.com/en-us/credit-cards/credit-intel/credit-score-to-lease-a-car/
- Capital One. (2026). Can You Lease a Car With Bad Credit? https://www.capitalone.com/learn-grow/money-management/can-you-lease-a-car-with-bad-credit/
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Reddit r/CRedit. (2020). Is it easier to lease a car with bad credit or buy a car?
Is it easier to lease a car with bad credit or buy a car?
byu/mysteryfigure inCRedit - Farris Motor Company. (2025). How to Lease a Car with Bad Credit: A Practical Checklist. https://farrismotor.com/blog/how-to-lease-a-car-with-bad-credit
I am a senior automotive analyst at Autvex. Expert vehicle evaluations, in-depth reviews, and objective analysis helping readers make informed automotive decisions with years of industry experience.
