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While there is no universal minimum credit score to lease a car, a score of 670 or higher significantly improves your approval odds and secures better terms[1]. The average credit score for new car lessees in Q1 2025 was 753, according to Experian data[2]. Leasing with bad credit is possible, but you will likely face higher monthly payments, larger down payment requirements, and limited vehicle choices[3].
How Credit Score Affects Your Lease
Your credit score directly influences two critical aspects of any car lease: whether you get approved at all, and what interest rate (called the money factor) you receive[1]. Unlike traditional car loans, leases require the leasing company to maintain ownership of the vehicle—making them particularly cautious about lessees who might default on payments.
The relationship between credit score and lease terms is straightforward: higher scores mean lower payments. According to Experian’s State of the Automotive Finance Market Report, the payment difference between super-prime (720+) and subprime (501-600) lessees averages about $84 per month[4]. Over a typical 36-month lease term, that translates to approximately $3,024 in additional costs for lower-credit lessees.
Credit Score Tiers for Car Leasing
Leasing companies categorize applicants into risk tiers that determine approval likelihood and rates[5]:
| Credit Tier | Score Range | Approval Likelihood | Typical Terms |
|---|---|---|---|
| Super Prime | 720+ | Excellent | Best rates, lowest down payment |
| Prime | 660-719 | Very Good | Competitive rates, standard terms |
| Near Prime | 620-659 | Moderate | Higher rates, larger down payment |
| Subprime | 580-619 | Difficult | Limited options, high rates |
| Deep Subprime | Below 580 | Very Difficult | May require cosigner or denial |
Most dealerships prefer applicants with scores of at least 700 for the best lease deals[2]. Scores between 660-700 typically qualify but may not access advertised promotional rates. Below 660, approval becomes increasingly challenging, though not impossible[3].
The Real Numbers: Credit Score and Monthly Payments
Understanding how credit scores translate to actual dollar amounts helps set realistic expectations. Based on 2024-2025 industry data[4]:
| Credit Tier | Average Monthly Payment | Lease Share |
|---|---|---|
| Super Prime (720+) | $522 | 66.41% |
| Prime (661-720) | $572 | 17.43% |
| Near Prime (601-660) | $606 | 10.06% |
| Subprime (501-600) | $606 | 2.95% |
The data reveals two important insights: first, the vast majority of lessees (over 83%) have prime or super-prime credit[4]. Second, while subprime lessees can get approved, they represent less than 3% of all leases—reflecting both stricter approval standards and less favorable economics.
Can You Lease a Car with Bad Credit?
Yes, leasing with bad credit is possible, but comes with significant trade-offs[3].
Challenges You Will Face
- Higher interest rates: Subprime lessees pay substantially more in money factors (the leasing equivalent of APR). Where a prime customer might receive a money factor of 0.00125 (roughly 3% APR), a subprime lessee could face 0.00417 or higher (10%+ APR)[6].
- Larger down payments: Leasing companies offset risk by requiring bigger upfront payments. While prime lessees often put down $0-2,000, subprime applicants may need $3,000-5,000 or more[3].
- Vehicle restrictions: Dealers may only approve leases on less expensive economy vehicles for lower-credit applicants, since they face less financial exposure if the lease defaults[4].
- Fewer promotional offers: Those attractive $199/month lease deals you see advertised? They almost always require excellent credit. Real monthly payments for subprime lessees on the same vehicle could be $350-400+[6].
Strategies to Improve Approval Odds
- Make a substantial down payment: Putting more money down reduces the leasing company’s risk and improves approval chances[3].
- Choose a more affordable vehicle: Companies are more willing to lease less expensive cars to applicants with credit challenges[3].
- Find a cosigner: A creditworthy cosigner dramatically improves approval odds. The cosigner’s credit history helps secure better terms, though they become equally responsible for payments[7].
- Shop multiple dealers: Credit criteria vary significantly between leasing companies. Some manufacturer finance arms have more flexible standards than others—being denied at one dealer doesn’t mean automatic denial everywhere[3].
- Consider special programs: Some manufacturers offer lease programs specifically designed for credit-challenged customers. These may have higher payments but more accessible approval requirements[7].
Leasing vs. Buying with Bad Credit
For applicants with lower credit scores, purchasing a used vehicle might actually provide better options than leasing[5]:
| Factor | Leasing | Buying (Loan) |
|---|---|---|
| Average Credit Score | 753 | 690 (used) |
| Approval Flexibility | Stricter | More flexible |
| Down Payment Options | Often higher required | Varies widely |
| Vehicle Choice | Often restricted | Broader options |
| Equity Building | None | Yes |
The average credit score for used car loans is significantly lower than for leases (690 vs. 753)[5], indicating that financing a purchase may be more accessible for those rebuilding credit.
How to Improve Your Credit Before Leasing
If your credit score falls short, consider waiting and improving your score before applying[1]:
- Check your credit reports: Review reports from all three bureaus for errors. Disputing inaccuracies can quickly boost your score.
- Pay down existing balances: Reducing credit card utilization below 30% of your limits significantly impacts scores.
- Make all payments on time: Payment history is the single largest factor in credit scoring. Six months of perfect payments demonstrates responsibility.
- Avoid new credit applications: Each hard inquiry temporarily reduces your score. Avoid opening new accounts before lease shopping.
- Become an authorized user: Being added to a family member’s established credit card account can help build positive history.
Even modest improvements can make a significant difference. Moving from 650 to 680 could shift you from near-prime to prime status, potentially saving hundreds of dollars monthly[2].
Key Takeaways
- No universal minimum exists, but scores of 670+ substantially improve approval odds and terms
- The average lessee credit score is 753 (Q1 2025), indicating leasing favors creditworthy applicants[2]
- Subprime lessees (scores 501-600) pay approximately $84/month more than super-prime lessees on equivalent vehicles[4]
- Leasing with bad credit is possible but requires larger down payments, higher monthly payments, and often limits vehicle choices
- Consider improving your credit before applying—even modest score increases can save thousands over a lease term
Frequently Asked Questions
What is the minimum credit score to lease a car?
There is no universal minimum credit score for leasing because each lender sets its own criteria[1]. However, most industry experts recommend having at least a 620 score for basic approval and 670+ for favorable terms. Scores below 620 face significant approval challenges.
Can I lease a car with a 600 credit score?
Yes, but approval will be difficult and expensive[3]. A 600 score falls into the subprime category where only about 3% of leases originate. Expect higher payments, larger down payments, and limited vehicle choices. Consider a cosigner or improving your credit first.
Does leasing a car help build credit?
Yes, lease payments are reported to credit bureaus just like loan payments[8]. Making consistent, on-time lease payments demonstrates creditworthiness and can improve your score over time. However, the initial credit inquiry when applying will cause a small, temporary score decrease.
What credit score do I need for a $0 down lease?
Zero-down lease offers typically require excellent credit—generally 720 or higher[2]. These promotional deals target the most creditworthy customers. Applicants with lower scores will almost always need some down payment to qualify.
Is it easier to lease or finance with bad credit?
Financing a used vehicle purchase is generally easier than leasing with bad credit[5]. The average credit score for used car loans (690) is significantly lower than for leases (753). More lenders specialize in subprime auto loans than subprime leases.
References
- Experian. (2024). What Credit Score Do I Need for a Car Lease? https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-for-a-car-lease/
- Investopedia. (2025). This Credit Score Can Get You the Best Car Lease Deals. https://www.investopedia.com/this-credit-score-can-get-you-the-best-car-lease-deals-11761892
- Experian. (2024). Can You Lease a Car With Bad Credit? https://www.experian.com/blogs/ask-experian/can-you-lease-a-car-with-bad-credit/
- 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/
- Self Financial. (2025). What Credit Score Do You Need to Lease A Car? https://www.self.inc/blog/credit-score-to-lease-car
- Cars.com. (2024). Can You Lease a Car With Bad Credit? https://www.cars.com/articles/can-you-lease-a-car-with-bad-credit-441663/
- Farris Motor. (2025). How to Lease a Car with Bad Credit: A Practical Checklist. https://farrismotor.com/blog/how-to-lease-a-car-with-bad-credit
- SoFi. (2025). Can Leasing a Car Build Credit? https://www.sofi.com/learn/content/credit-score-needed-to-lease/
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.
