Bankruptcy: As a person or business can no longer repay their outstanding debts, they file for bankruptcy. Its goal is to give you a fresh start by eliminating your debts but it does have repercussions.
- It can lower your credit score dramatically. Whether you started at a good or bad score, there will be a significant drop.
- It will appear on your credit score and stay there for up to 10 years, or even longer if you apply for a loan amount above or equal to $150,000.
- Future car loans will have higher interest rates and car loans might require larger down payments.
So what CAN you do if you are at a point in your life where you want to lease a car following bankruptcy?
Obtain Credit Report
- Know where you are with your credit score. The number will be your gauge on how far you have to go to get a high enough score to lease.
- Filing bankruptcy relieves your past debts, but in order to bring up your credit score, it is best to obtain at least one new credit card to use responsibly. You can bring up your score quicker by paying off the credit balance each month before your payment date.
- A few lenders out there tend to avoid those who have filed for bankruptcy in the past, but there are some out there that are willing to work with you and help you at. Research and obtain information from different lenders to get an idea of what you need to do in order to set up a successful car lease. Be careful, however, some may take advantage of your situation. Be sure to ask questions on:
- Leasing options
- Qualifying incentives or rebates
- Best possible interest rate
- Minimum credit score required
- Availability of short-term leases
- It may be easier to take on a lease assumption rather than a new lease on your own. A lease assumption is basically you taking over someone else’s lease because they can’t pay for it anymore. At times, the down payment will be small or you don’t need to put money down at all. It is easier to qualify for this type of lease, but you need approval from the lender.
Are you looking to lease a car with bankruptcy in your records? Be sure to follow these tips! Also, be sure to check out Swapalease.com.
Swapalease.com is the online marketplace with vehicles and customers in every state in the continental United States and Canada. For more information on finding the best car lease deals or to learn how you can have a successful car lease trade, visit Swapalease.com or contact them at 866-SWAPNOW.