If you have bad credit and need a car, you might be wondering: "Can I lease a car if my credit isn’t perfect?"
It’s a smart question — and the answer might surprise you.
Leasing could actually be a better option than buying if you’re rebuilding your credit. Here’s how it works and what to expect.
When you have challenged credit, you usually face two paths:
A long-term loan with a high interest rate on a high-mileage car you may not even love.
Or, leasing a brand-new car that's under warranty the entire time — while rebuilding your credit.
Most car commercials focus on "all credit apps accepted" deals for used cars. But rarely do they mention leasing as a real solution.
I always look for ways to set clients up for success, not just sell them a car.
In general:
600–650 credit score: Considered "challenged credit"
720+ score: Gets you the best lease rates
740+ score: Typically qualifies as A++ credit
Life happens — medical emergencies, unexpected bills — and good people sometimes face credit setbacks.
The key is to have a strategy to rebuild, and leasing can be a part of that strategy.
Leasing with challenged credit is definitely possible. Here's what you need to know:
Expect a slightly higher monthly payment compared to someone with excellent credit.
But in exchange, you'll be driving a new car under full warranty.
You don't have to love the car — you need a safe, reliable, comfortable vehicle that meets your daily needs.
Pro Tip: If you're in love with the car but it's a financial stretch, it's a sign you may need to wait. Build first. Dream cars come later!
Lenders look for:
Proof of income (last 30 days of paystubs)
Stable job history (2+ years preferred)
Stable residence history (2+ years preferred)
Being prepared improves your chances of approval.
With a lease, your car stays under factory warranty the entire time.
No worrying about expensive repairs on an older car during a long, risky loan.
A cosigner can help you qualify, and leasing presents less risk to cosigners than traditional car loans:
Fixed 2–3 year term
Brand-new, reliable car under warranty
No unexpected major repairs
If you're considering asking a family member to cosign, leasing can be a smarter and safer option for everyone involved.
A lease is considered a high-dollar installment loan on your credit report — exactly what lenders love to see.
On-time payments for 2–3 years = Significant credit score growth
Many clients qualify to lease again — this time without a cosigner
Some even qualify for a home mortgage after rebuilding their credit through leasing
Yes — you can absolutely lease a car with bad credit.
It takes preparation, patience, and smart decisions — but it’s one of the best ways to:
Drive a safe, reliable car
Rebuild your credit faster
Create a path toward home ownership and greater financial freedom