How Credit Affects your Audi Lease
Your credit history is the first thing that a leasing company will check when considering whether to do business with you. Banks use your credit history as a basis for determining the level of risk involved with writing you a loan or lease. With a good credit score, you are a great candidate for a lease. However, with a blemished credit history, you will be less likely to be approved by the leasing company.There are some financing institutions that are willing to write leases for people with poor credit, but these leases typically carry very high interest rates, which can be extremely expensive. If you are concerned about your credit history or you are simply curious about your current credit score, CLICK HERE.
| Credit history is typically the most important factor that effects an individual's vehicle purchase decision. |
Understanding your score
Often, a credit bureau has a score associated with it, which is used by a lender to quickly categorize various credit candidates into different classifications based on perceived risk. This score, often referred to as your Beacon Score, is derived from a formula that utilizes the information provided by a credit bureau. The score is inversely related to the risk a credit candidate poses to a lender in terms of repayment. Simply put, the higher the score, the better chance you have of being approved for credit. Credit scores have a top end of approximately 800, with most individuals falling in the 500 to 700 range.
What does my credit score mean?
You may have heard your credit, or someone else's, referred to by using an alphabetical letter, or more specifically A, B, C, or D credit. These classifications are related to credit score and are another way that lenders group and categorize potential credit candidates. The following credit score ranges are commonly used and accepted by most lenders when rating one's credit worthiness:
| Number | Rating |
|
700+ |
A |
|
670-699 |
B |
|
640-669 |
C |
|
<639 |
D |
AudiLease.org offers three unique services that can help you to gain a better understanding of your current credit situation:
1) Free Credit Report
- Instant access to your credit report
- See your credit score and debt analysis
- Monitor your credit report
- Guard against identity theft
2) Credit Improvement
- Start with a phone assessment
- Receive updated credit reports
- Let the professionals do the work
3) Comprehensive credit report
- See your files from TransUnion, Experian, and Equifax
- Instant online delivery
- Get the big picture on your credit history
- Easy-to-read, consumer friendly format
- Review your 3-1 before your apply for a loan
How does your credit relate to your interest rate?
Securing a low interest rate can help you to save thousands of dollars on a lease. Although you do have the ability to shop different banks for the best interest rate, your credit history will ultimately determine which interest rate you are eligible for.
| The higher your credit score, the lower your interest rates will be. |
A lot of the 'amazing' deals that are advertised for 'nothing down' and 'no interest' are for people whose credit score is 700+. However, most people do not have perfect credit, which means that the interest rate will be an issue of concern. If your credit is not great, you should consider credit improvement before trying to secure an attractive interest rate.
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