What is bad credit car leasing
Bad credit can get in the way when you are trying to buy a car on finance or lease a car on a normal leasing deal. But why? A credit rating that usually comes with a credit report will indicate the level of trust a business will out in you to repay any money you have or will borrow. If you have good credit, the trust will obviously be high, but if you have a bad credit rating, then they are unlikely to trust you with a normal agreement.
Bad credit simply describes your past failings to keep up your payments on previous credit agreements, which means you are unlikely to be approved for new credit, including new car finance or car leasing deals.
Here are some of the things that can damage you credit rating:
- Late payments, debt collections, charged-off accounts
- Eviction, foreclosures, repossessions or lawsuit judgements
- High credit card and loan balances
- Recent applications for credit
- No or limited credit history
- Debt settlement and credit counseling
In order to protect their businesses from customers who aren’t able to repay their payments, they employ credit firms to ensure that each customer has good credit. This is the reason you will be denied if you have bad credit.
Rise of Bad Credit Car Leasing
With the recent financial difficulty, many have seen a decrease in their budgets and a rise in bad credit scores. This is why Zero Deposit Car Leasing has introduced bad credit car leasing deals, because in the majority of circumstance, most people need a car to be able to go to work or enjoy their weekends or conduct their hobbies. Bad Credit Car Leasing is a great way of helping people with bad credit get a car.
Bad Credit car leasing is different to bad credit finance because rather than receiving a finance loan for the car, the customer is signing a contract hire agreement. This means that instead of purchasing a car with a loan, you are hiring the car for a specific length of time.
Bad credit car leasing agreements usually include the following features:
- Road tax is usually included in the monthly payments for the term of the contract
- The monthly payments are fixed rather than fluctuating with bank interest rates
- There is sometimes warranty for the period of the hire
- Bad Credit Car Leasing agreements are usually 4-5 year contracts.
- The annual mileage is usually agreed at the beginning of the contract and if you go over the limit then there is a charge per mile over.
- Monthly payments are usually higher with bad credit leasing deals than with normal car leasing deals.
If you have bad credit and are looking for personal car leasing, then we have a variety of deals on a variety of cars available for you to consider. While we understand that bad credit car leasing will be higher than normal leasing, we can help you find cheap car leasing for you on a bad credit agreement.