Are you considering getting behind the wheel of a new Lexus model here at Lexus of Valencia? Signing a Lexus lease can be a sensible choice for drivers looking for more flexibility, lower monthly payments, and the ability to drive the newest Lexus models when they are first released. But did you know that a Lexus lease can sometimes even help your credit score? Let our friendly Lexus finance representatives explain how.
The Relationship Between Leasing and Your Credit Score
A common misconception is that leasing a car is similar to renting an apartment – it doesn’t affect your credit score. However, that is not true. In terms of credit, leasing is closer to taking out an automobile loan in that your monthly payments are reported to the major credit bureaus. Making consistent, on-time payments can help you build a positive credit history, eventually boosting your score.
How it Works
You can consider your lease payments as opportunities to demonstrate responsible financial behavior. Each time you make an on-time payment, it adds a positive mark to your credit report. Because credit history plays a significant role in your credit score, a successful Lexus lease can make a difference.
Considerations
As with any form of financing, missed or late lease payments can damage your credit. Thus, before signing the lease, be sure that you can comfortably afford the monthly payment to protect your credit score. Also, remember that although there is technically no minimum credit score for beginning a lease, a good credit score increases your chances of approval and can lead to more favorable terms.
Sign a Lexus Lease in Valencia, CA
Now that you can better understand how leasing can affect your credit score, stop by Lexus of Valencia to explore our inventory. Our friendly sales team and finance representatives are ready to help you find a model to meet your needs. Stop by today!
