If you have issues with your credit, getting a car, whether you lease or buy, may be challenging. However, you still need a vehicle. If you have no or poor credit, a cosigner can help make that possible.
D&M Leasing is here to help you learn the ins and outs cosigning a car lease.
Do You Have Poor Credit?
There are a lot of ways to diminish your credit score. Maybe you’ve missed a few payment due dates, or went over your credit line. Sometimes unfortunate things happen and defaults, repossession, and bankruptcy are unavoidable. Such life events can negativity affect credit up to 10 years.
Even if you’ve evaded debt, lack of credit can be just as impactful. If you have no loan or credit history, the bank cannot accurately evaluate your credit performance.
There are plenty of free credit checkers, so you can assess where your credit lies before heading to the dealer. Credit scores can range anywhere from 300 to 850, 550 is considered very negative, while 750 is exceptional. Anything below 629 is considered bad credit. However, fair credit, 630 to 689, may also require a cosigner.
Who Should Be Your Cosigner?
The purpose of a cosigner is that they agree to make your lease payments if you are unable to. They are required to have good credit since their qualifications will grant the lease or loan approval. Even though their name is on the lease contract, the vehicle is still your responsibility; a cosigner is not a co-owner.
Your cosigner should be someone with mutual trust. In case of serious financial hardship, in which there was no way you could make your monthly payments, you should be able to trust that your cosigner will fulfill the obligation. Your cosigner must be able to trust that you will do everything in your control to be accountable for your monthly payments.
What If You Don’t Have a Cosigner?
Then you need a sub-prime lender. Sub-prime lenders provide loans to people with poor credit. This often comes at a higher interest rate to compensate. Both bad credit and nonexistent credit history are temporary nuisances that can be repaired over time. A car lease is a great start to building your credit or recovering bad credit.
At D&M Leasing, we take every client’s specific situation and personal needs into account when finding you a customized lease that works for you. Contact D&M Auto Leasing today for quote.