{"id":26873,"date":"2022-12-20T11:33:20","date_gmt":"2022-12-20T10:33:20","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26873"},"modified":"2023-02-23T10:01:45","modified_gmt":"2023-02-23T09:01:45","slug":"bad-credit-car-leasing","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/","title":{"rendered":"Bad Credit Car Leasing: How to Lease a Vehicle with Poor Credit"},"content":{"rendered":"\n<p>Many of us assume that leasing a car with bad credit isn\u2019t an option. But it is! Depending on where you live, driving is a necessity, and the good news is that you don\u2019t need a perfect credit file to get yourself on the road. <strong>There are finance companies who\u2019ll provide you with a leasing contract even with bad credit.<\/strong><\/p>\n\n\n\n<p>In this blog post, we\u2019ll give you all the information you need on how you can lease a car even if you have bad credit.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e17451022d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e17451022d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#can_i_lease_a_car_with_bad_credit\" >Can I Lease a Car with Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#how_does_car_leasing_for_bad_credit_work\" >How Does Car Leasing for Bad Credit Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#what_should_i_consider_when_leasing_a_car_with_bad_credit\" >What Should I Consider When Leasing a Car with Bad Credit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#1_can_i_afford_to_run_the_car\" >1. Can I Afford to Run the Car?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#2_do_i_really_need_a_car\" >2. Do I Really Need a Car?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#3_do_i_have_enough_of_a_deposit\" >3. Do I Have Enough of a Deposit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#4_what_is_the_best_deal\" >4. What is the Best Deal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#5_am_i_prepared_to_explain_my_poor_credit\" >5. Am I Prepared to Explain my Poor Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#6_how_many_miles_will_i_be_driving\" >6. How Many Miles Will I be Driving?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#what_are_the_advantages_and_disadvantages_of_leasing_a_car_with_bad_credit_in_the_uk\" >What are the Advantages and Disadvantages of Leasing a Car with Bad Credit in the UK?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#what_can_i_do_if_i_am_rejected_for_a_car_lease_because_of_bad_credit\" >What Can I do if I am Rejected for a Car Lease Because of Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#what_are_the_alternatives_to_leasing_a_car\" >What are the Alternatives to Leasing a Car?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#faqs_%e2%80%93_bad_credit_car_leasing\" >FAQs &#8211; Bad Credit Car Leasing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#can_i_lease_a_car_with_no_credit_check\" >Can I Lease a Car with No Credit Check?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#can_i_lease_a_car_with_no_credit_history\" >Can I Lease a Car with No Credit History?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#can_i_lease_a_car_if_i_have_an_individual_voluntary_arrangement_iva\" >Can I Lease a Car if I Have an Individual Voluntary Arrangement (IVA)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#can_i_lease_a_car_if_i_am_bankrupt\" >Can I Lease a Car if I am Bankrupt?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#what_credit_score_do_i_need_to_lease_a_car\" >What Credit Score do I Need to Lease a Car?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-car-leasing\/#can_leasing_a_car_improve_my_credit_score\" >Can Leasing a Car Improve my Credit Score?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"can-i-lease-a-car-with-bad-credit\"><span class=\"ez-toc-section\" id=\"can_i_lease_a_car_with_bad_credit\"><\/span><strong>Can I Lease a Car with Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Yes, you can lease a car with bad credit. <\/strong>It may not be as straight forward as it is with good credit, but it is possible. To improve your chances of being approved, here are a few things that you can do.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>First, even if you have bad credit, it would be good to start building up a history of making payments on time. So, start from now with paying back what you owe, even a short period of time will work in your favour.<\/li>\n\n\n\n<li>Think about your employment. It will help also if you can prove that you\u2019ve got a steady income coming in, even if it\u2019s not as much as you\u2019d like. This will show the lender that you\u2019re capable of making the monthly payments when they\u2019re due.<\/li>\n\n\n\n<li>Maybe you could put down a larger deposit? If you can save up any extra cash or borrow from friends and family for a larger deposit will give lenders a safety net in case, you default on the payments. They\u2019re far more likely to approve your lease.<\/li>\n\n\n\n<li>Find a lender that specialises in considering <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/bad-credit-loans\/\"><strong>bad credit loans<\/strong><\/a>. They\u2019ll look at more than just your credit score when reviewing your bad credit application. They\u2019ll look at different criteria to assess your affordability.<\/li>\n<\/ol>\n\n\n\n<p>By taking these steps and if you\u2019re willing to put in a little extra effort, it\u2019s possible to lease a car with bad credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-does-car-leasing-for-bad-credit-work\"><span class=\"ez-toc-section\" id=\"how_does_car_leasing_for_bad_credit_work\"><\/span><strong>How Does Car Leasing for Bad Credit Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process is almost no different to if you have good credit. But instead of working with a bank or financial institution, you&#8217;ll work with a specialist leasing company. These specialist companies have different requirements as they look beyond your bad credit.<\/p>\n\n\n\n<p><strong>Car leasing companies who are in the market to help people with poor credit histories could:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ask that you pay a bigger deposit<\/li>\n\n\n\n<li>Have higher interest rates on their lease agreements<\/li>\n\n\n\n<li>Have less options for you to choose from<\/li>\n<\/ul>\n\n\n\n<p>Taking out a car lease with one of these companies isn\u2019t necessarily a bad idea. It can help you to build your credit score if you make your payments on time which can help with future loans on cars, or otherwise.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-should-i-consider-when-leasing-a-car-with-bad-credit\"><span class=\"ez-toc-section\" id=\"what_should_i_consider_when_leasing_a_car_with_bad_credit\"><\/span><strong>What Should I Consider When Leasing a Car with Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>If you want to lease a car with bad credit, there are a few things to think about before signing on the dotted line.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-can-i-afford-to-run-the-car\"><span class=\"ez-toc-section\" id=\"1_can_i_afford_to_run_the_car\"><\/span><strong>1. Can I Afford to Run the Car?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You&#8217;ll be responsible for making monthly payments so make sure you can afford the payments before applying. Remember to take into account the running costs, which don\u2019t just mean paying for the fuel. Depending on your contract you\u2019ll have other costs to pay for, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Car insurance<\/li>\n\n\n\n<li>Road tax<\/li>\n\n\n\n<li>Tires and general maintenance<\/li>\n\n\n\n<li><a href=\"https:\/\/www.gov.uk\/check-mot-status\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>MOTs<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-do-i-really-need-a-car\"><span class=\"ez-toc-section\" id=\"2_do_i_really_need_a_car\"><\/span><strong>2. Do I Really Need a Car?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you only need a car for occasional use, leasing may not be the best option. You may want to consider other options like using public transport or car sharing services. If you do need a car, think about whether a smaller, less expensive one will do.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-do-i-have-enough-of-a-deposit\"><span class=\"ez-toc-section\" id=\"3_do_i_have_enough_of_a_deposit\"><\/span><strong>3. Do I Have Enough of a Deposit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The larger the deposit you can pay, the lower the monthly payments will be. There are some companies who\u2019ll give you a car lease with no deposit \u2013 even with bad credit. But you\u2019re better off working out if can put down a deposit before applying for a lease.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-what-is-the-best-deal\"><span class=\"ez-toc-section\" id=\"4_what_is_the_best_deal\"><\/span><strong>4. What is the Best Deal?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are lots of different leasing companies out there, including some who offer car leases for bad credit. Some of these are brokers rather than direct lenders, so do your research. Compare rates and terms so you can choose the one that suits you best.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-am-i-prepared-to-explain-my-poor-credit\"><span class=\"ez-toc-section\" id=\"5_am_i_prepared_to_explain_my_poor_credit\"><\/span><strong>5. Am I Prepared to Explain my Poor Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Leasing companies will want to know why you have bad credit. You\u2019ll need to be honest and open when you answer any questions they have. They may ask for extra information such as payslips or bank statements, which you\u2019ll need to provide.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"6-how-many-miles-will-i-be-driving\"><span class=\"ez-toc-section\" id=\"6_how_many_miles_will_i_be_driving\"><\/span><strong>6. How Many Miles Will I be Driving?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Most leases have a mileage limit, so it&#8217;s important to estimate how many miles you&#8217;ll be driving in a year. The more miles you do, the higher the monthly payments.<\/p>\n\n\n\n<p>By making sure you know what you\u2019re taking on you\u2019ll be able to choose the best leasing agreement for you. And you\u2019ll be able to find which company are more likely to lend to you. Even with bad credit.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-advantages-and-disadvantages-of-leasing-a-car-with-bad-credit-in-the-uk\"><span class=\"ez-toc-section\" id=\"what_are_the_advantages_and_disadvantages_of_leasing_a_car_with_bad_credit_in_the_uk\"><\/span><strong>What are the Advantages and Disadvantages of Leasing a Car with Bad Credit in the UK?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Leasing a car with bad credit in the UK has its advantages and disadvantages. The table below lists some of them.<\/p>\n\n\n\n<figure class=\"wp-block-table aligncenter\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Advantages of Car Leasing with Bad Credit<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Disadvantages of Car Leasing with Bad Credit<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Making your payments in full and on time will help to improve your credit score.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You may end up paying higher interest rates.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">It gives you the chance to drive a newer car which you may not otherwise afford. This also can also mean lower repair costs.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You\u2019ll have a limit on your mileage. If you go over this limit, you\u2019ll incur extra costs.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t have to find a large lump sum of money to buy the car outright.<\/td><td class=\"has-text-align-center\" data-align=\"center\">You don\u2019t own the car, you\u2019ll have to give it back at the end of the lease.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-can-i-do-if-i-am-rejected-for-a-car-lease-because-of-bad-credit\"><span class=\"ez-toc-section\" id=\"what_can_i_do_if_i_am_rejected_for_a_car_lease_because_of_bad_credit\"><\/span><strong>What Can I do if I am Rejected for a Car Lease Because of Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you&#8217;ve ever tried to lease a car with bad credit, you know the process can be frustrating. You may be told that your credit score is too low, or that you don&#8217;t have enough income to qualify. But there are a few things you can do if you find yourself in this situation.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Leasing companies use your <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-is-the-average-credit-score-in-the-uk\/\"><strong>credit score<\/strong><\/a> to determine how likely you are to make your payments. If your score is low, find out if there\u2019s anything else you can do to get the lease. <strong>You could:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Show the company your payslips and bank statements to prove you can afford the payments.<\/li>\n\n\n\n<li>You could offer to pay slightly increased rental payments if you can afford it. Then take on a shorter lease so they\u2019re not high for long. By showing you can keep up your payments it\u2019ll help bring them down on your next lease.<\/li>\n\n\n\n<li>Offer to make a higher deposit if you\u2019ve got the money to do it.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>If you&#8217;re denied a lease because of your credit score, consider taking out a joint lease. If you do this, then both incomes and credit scores will be taken into account. Of course, both of you will be responsible for the payments too. And if you default on the lease agreement, then it\u2019ll affect both your credit files. You can only do this with someone who shares your address.<\/li>\n\n\n\n<li>If your application has been declined, you could appeal against the decision. Get a copy of your credit report and check if there\u2019s anything on there that could be changed. By presenting more up to date facts on your situation, it might help them change their mind.<\/li>\n\n\n\n<li>Ultimately, the best way to improve your chances of getting approved for a car lease is to build up your credit score. This does take time, but by <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/improve-your-credit-score\/\"><strong>improving your credit score<\/strong><\/a> it\u2019ll make it easier to lease a car in the future.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-alternatives-to-leasing-a-car\"><span class=\"ez-toc-section\" id=\"what_are_the_alternatives_to_leasing_a_car\"><\/span><strong>What are the Alternatives to Leasing a Car?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you&#8217;ve been turned down for a car lease because of your bad credit score, then don\u2019t worry, you\u2019ve still got options.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>One option is to lease a car through a \u2018subprime lender\u2019. These lenders specialise in working with those of us with bad credit.<\/li>\n<\/ol>\n\n\n\n<p>You may find one or two who are willing to lease you a car with no credit check. But you should keep in mind that all lenders who are regulated by the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" rel=\"noreferrer noopener\"><strong>Financial Conduct Authority<\/strong><\/a> (FCA) will carry out a credit check. The FCA ensures best practices are being followed and financial institutions are treating consumers fairly. Borrowing from a lender who is not regulated by the FCA is risky.<\/p>\n\n\n\n<p><strong>Here are three companies who claim to offer cars on lease specifically for people with bad credit.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.anycaronline.co.uk\/non-status-poor-credit-history.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Any Car Online<\/strong><\/a> this is a direct lender.<\/li>\n<\/ul>\n\n\n\n<p>These next two are brokers, so they search a panel of lenders for you.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.hippoleasing.co.uk\/subprime-cars\/\" target=\"_blank\" rel=\"noreferrer noopener\">Hippo Leasing<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.carfinance247.co.uk\/car-finance-ccj-defaults-iva\" target=\"_blank\" rel=\"noreferrer noopener\">Car Finance 247<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>Another option is to take out a car loan. Even if you have bad credit, you may still be able to get approved for this type of loan. The terms of the loan are likely to be less favorable than with a lease agreement. But it\u2019s another option if you are in real need of road transportation.<\/li>\n\n\n\n<li>You could try getting a <a href=\"https:\/\/en.wikipedia.org\/wiki\/Personal_contract_purchase\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>personal contract purchase<\/strong><\/a> (PCP). This is a type of financing is where you make monthly payments for an agreed period of time. At the end of the agreement, you\u2019ve got the option to purchase the car outright by making a final lump sum payment. Otherwise, you can just return the car to the lender.<\/li>\n<\/ol>\n\n\n\n<p>Whatever option you choose, make sure that you do your research first. You don\u2019t want to keep making lots of credit applications as this will hurt your credit score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faqs-bad-credit-car-leasing\"><span class=\"ez-toc-section\" id=\"faqs_%e2%80%93_bad_credit_car_leasing\"><\/span>FAQs &#8211; Bad Credit Car Leasing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1671102996917\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_lease_a_car_with_no_credit_check\"><\/span><strong>Can I Lease a Car with No Credit Check?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You might be able to. But you should keep in mind that all lenders who a regulated by the Financial Conduct Authority (FCA) will carry out a credit check. This means that all reputable leasing companies will do a credit check as part of the application process.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671103020359\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_lease_a_car_with_no_credit_history\"><\/span><strong>Can I Lease a Car with No Credit History?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If you have little or no credit history, you\u2019re access to leasing a car is limited. But it\u2019s not impossible. There are leasing companies who\u2019ll look at more than just your credit file, Compass Vehicle Services Is one. They understand that bad credit doesn\u2019t mean you won\u2019t pay, so they\u2019re willing to help.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671103171584\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_lease_a_car_if_i_have_an_individual_voluntary_arrangement_iva\"><\/span><strong>Can I Lease a Car if I Have an Individual Voluntary Arrangement (IVA)?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If you have an IVA, you may still be able to lease a car, but there\u2019ll be some extra hoops to jump through. You\u2019ll have to get permission from your IVA practitioner first. But once you\u2019ve got this, go to a lender who specialises in leasing to people with IVAs. For example, Hippo Leasing are brokers who claim to lease cars to people with IVAs.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671103194799\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_lease_a_car_if_i_am_bankrupt\"><\/span><strong>Can I Lease a Car if I am Bankrupt?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p><a href=\"https:\/\/www.nidirect.gov.uk\/articles\/bankruptcy\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>If you\u2019ve been declared bankrupt<\/strong><\/a> but it\u2019s been discharged, you may still be able to lease a car. There are specialist lenders who offer car leasing to people in your shoes. Compass Vehicle Services are a direct lender who are willing to help people who\u2019ve been bankrupt.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671103227150\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what_credit_score_do_i_need_to_lease_a_car\"><\/span><strong>What Credit Score do I Need to Lease a Car?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It really depends on the lender. As a rough guide, you can expect that most lenders will be looking for a credit score of at least 500. But you may be able to get a lease with a lower credit score if you can prove that you can afford the payments.<br \/><strong>To find out what your credit score is, go to one of the top three credit reference agencies in the UK:<\/strong><br \/>1. Experian<br \/>2. Equifax<br \/>3. TransUnion<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1671103288562\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_leasing_a_car_improve_my_credit_score\"><\/span><strong>Can Leasing a Car Improve my Credit Score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, leasing a car can help improve your credit score. But it\u2019s all down to how you manage your payments. As you make your lease payments on time as they\u2019ll help to build up your payment history. This is one of the key factors that determines your credit score. It\u2019s important to never take out a loan unless you are sure you can manage the repayments. Defaulting or continuously paying late will have a negative effect on your credit score.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> Any information provided does not constitute financial advice. Please read carefully about the terms and conditions of the credit provider you choose to take out a loan from. Any links to external websites are for reference only and are correct at time of publishing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many of us assume that leasing a car with bad credit isn\u2019t an option. But it is! Depending on where you live, driving is a necessity, and the good news is that you don\u2019t need a perfect credit file to get yourself on the road. There are finance companies who\u2019ll provide you with a leasing [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26875,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26873"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26873"}],"version-history":[{"count":2,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26873\/revisions"}],"predecessor-version":[{"id":27015,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26873\/revisions\/27015"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26875"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}