Can you lease a car with bad credit?
March 12, 2025 by David Motton

It’s tough to lease a car with bad credit. Finance and leasing companies can be quite picky about their customers, especially when providing an expensive car. It’s possible to lease a car with bad credit, but you may need to take steps to improve your credit score first. Alternatively, you may have to set your sights on an affordable car with low monthly payments.
Can you lease a car with bad credit?
Yes, you can lease a car with bad credit. It’s not as easy as finding a leasing deal with a clean financial history, though.
You may need to take steps to become a safer bet in the eyes of the leasing company, or you could benefit from shopping around to find a leasing firm that’s more flexible and understanding. Choosing a more affordable car with lower monthly payments can certainly help.
But ultimately, improving your credit score is key.
How to find out your credit score
You can find your credit score through companies such as Experian and Equifax.
A basic credit score report is usually free, although you may need to sign up for a free trial. A paid for account unlocks additional features, including tips to make you more appealing to lenders as well as security features.
Different credit rating agencies use different scoring ranges. With Experian, the score runs from 0 to 999. With Equifax, the maximum score is 1000. The higher the number, the better the score. The better the score, the more likely that you will be accepted for a personal loan, a credit card – or a car lease.
If you discover that you have a bad score, there are steps you can take to improve it.
How to lease a car with bad credit
There are various ways to arrange a car lease, even with bad credit. Anything you can do to reduce the risk to the lender makes it more likely that you’ll be accepted as a leasing customer.
Pay more upfront
The more you pay at the start of the agreement, the less you have to pay each month. From the leasing company’s perspective, that makes the leasing deal less risky because a big chunk has paid on day one.
Choose an affordable car
A more affordable car costs less to lease. The lower the monthly payments, the more likely that someone with an iffy credit score will be able to pay the bill each month without overstretching themselves. So, someone with a bad credit score is more likely to be accepted as a customer when signing up to lease a cheap and affordable car.
Find a guarantor or co-signer
The leasing company will see you as less of a risk if someone else acts as a guarantor or co-signer. This applies, in particular, if the other name on the agreement has a very good credit score. In effect, their good score makes up for your poor score.
Choose a lease takeover
A lease takeover is when someone takes over the remaining payments and responsibilities of an existing leasing deal. The original leasing customer wants out, the leasing company wants someone to make the remaining payments. It’s a win-win when someone steps in to take on the car and make the remaining payments.
Improve your credit score
If your credit score is stopping you from leasing the car you really want, take steps to improve it. You can’t undo bad credit history overnight though, but you may be surprised how much you can change your score by taking a few simple steps.
How to improve your credit score
There are various steps you can take to improve your credit score:
- Correct mistakes: Take a thorough look at your credit report. Mistakes do sometimes happen, and you can apply to the credit agency to have them corrected. You can also apply for a ‘Notice of Correction’ which can explain why the circumstances which led to you falling behind with repayments no longer apply.
- Paint a better picture: Show lenders that you are responsible with money, whatever may have happened in the past. This could be something as simple as opening a current account and staying within the agreed overdraft. If you have a joint account and the bad credit score is mostly your partner’s, you could close the account and apply for a ‘notice of disassociation’ to stop your credit records being linked. Another tip is to set up direct debits for your bills so there’s no chance you will forget when a payment is due.
- Add extra info: If you rent your home, are these payments showing up on your credit report? You can add them to show that you have been making payments on time. Make sure you are registered to vote at your current address, and that this shows on your credit report. Experian runs a scheme called ‘Boost’ which adds payments such as council tax and subscriptions to your credit score.
- Do the work yourself: There are credit repair companies which will advise you on how to improve your credit score, but you can take the necessary steps yourself with a little research and effort. Save money and go the DIY route.
Does car leasing affect credit score?
Yes, leasing a car can affect your credit score. It can boost your rating if you make all your payments on time. However, the opposite could be true if you miss payments.
Rather than struggle with a leasing deal you can no longer afford, it’s better to have an honest conversation with the leasing company. There may be a way to end the deal early or transfer the lease to somebody else. This is better for your credit score than frequently defaulting on payments.
Leasing a car with bad credit FAQs
What is the lowest credit score to lease a car?
There’s no hard and fast answer. Generally a credit score that’s ‘good’ or ‘excellent’ will make it easy to find a leasing deal for a car. Score lower, and leasing will be more difficult but not impossible.
Can I lease a car with no credit?
If you have no credit history for a company to assess, you may still be able to find a leasing deal. The chances are you will need to prove to the leasing company that you earn enough to afford the repayments.
Can I lease a car if I have a CCJ?
Many leasing companies will not accept you as a customer if you have a county court judgment (CCJ). However, it’s not a universal rule. Some companies will lease you a car, although you may need to make a higher initial payment or accept strict terms.
How long does it take to improve my credit score?
Taking steps to improve your credit rating can see a change in a month or a little more. However, if you have a really bad credit history it could take years to fully turn things around.
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