You probably know that your credit matters when you apply for a car lease, but some drivers also wonder if leasing a vehicle will end up affecting your credit.
When you lease a Certified Pre-Owned Alfa Romeo, it will affect your credit, but don't worry! A lease can actually be a good thing for your finances!
It's a Financial Obligation
What you need to remember first and foremost is that a lease is a financial obligation. That means that if you plan to make other financial commitments, it's going to come up.
When lenders or financial institutions look at your credit history and income to see if you'll qualify for a loan, they aren't just going to look at your past. They also need to look in the present, to see what kinds of other financial obligations you have.
A lease payment is a big obligation. Depending on your income and some other factors, leasing a car may make it harder to take out another loan or make another financial commitment.
A Lease Can Help Your Credit Improve
It's not all bad news though, because a lease can also help your credit improve. When you're leasing a car, you're making a payment every month for two to three years. Make all of those payments on time and that reflects well on you.
When you apply for another loan or a lease or something else, people will be able to see that you were good about paying your debts in the past. Your credit score could rise as well.
However, remember that this can also go the other way. If you neglect to make your lease payments on time or default, this can harm your credit score.
If you have any more questions the Alfa Romeo financing experts at our dealership can help. Visit our Alfa Romeo dealers near Katy, TX and find a new or pre-owned vehicle that delivers the driving thrills you've been searching for. We hope to see you soon!
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