Interested in boosting your credit score? Our Honda finance experts at Heritage Honda Parkville are outlining how a lease can actually affect your credit score.
How Does a Lease Work?
An auto lease is essentially a long-term rental from our dealership. You’ll work with our team to set up a term for your lease, which is typically two or three years.
Then, we’ll determine the cost by estimating the depreciation of the vehicle during your lease.
How Does a Lease Affect Your Credit?
Leasing a car can affect your credit in the same way financing a vehicle can. By making regular monthly payments, you show that you can borrow and pay back money responsibly.
Anytime you borrow money and make regular, on-time payments, it is reported to the credit bureaus, and it can help you boost your credit score.
Can Leasing Hurt Your Credit Score?
Keep in mind, this can also have an unwanted effect on your credit score. If you fail to make your payments on time (or worse, stop making them completely) your credit score can suffer.
Also, your score may initially drop when you first secure your lease since you’ve opened a new account and added to your debt.
Why Lease a Vehicle?
When you are working on building up your credit, leasing can actually be very beneficial. For starters, leasing is more affordable than financing, so leasing can help you keep your expenses down. Plus, it will be easier for you to afford, which can help ensure you can always make your payments.
Ready to secure a new Honda lease? We’re ready to help! Visit our Honda dealership in Parkville, MD to get into a new Honda car, SUV, or truck today.
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