What Type of Credit Do You Need to Lease a Car?

A person's credit score -- a credit reporting bureau's measurement of his creditworthiness -- affects a person in a number of different areas of his life. In addition to affecting the interest rates that the person is able to receive on loans, a credit score will often also affect the terms that the person can receive on a leased car. With a higher credit score, the person can expect to pay less money.

Leasing

When a person leases a car, he is, in effect, being extended a form of credit in the form of the use of the car. Car leasing companies generally want to lend to people who are financially responsible and who are not likely to refuse to pay their lease. Therefore, many leasing companies will look at a person's credit score when determining the rates the person must pay.

Credit Score

According to the automotive reference website Lease Guide, a person who has a score of 700 or higher can expect to get the best rates on a lease. However, a person with a score below 640 may have difficulty getting a lease. The person may be required to pay additional money in interest or fees, or he may not be allowed to lease a car at all if his score is too low.

Other Factors

A person's creditworthiness, in the eyes of leasing companies, is not defined entirely by his credit score. In addition, the company will likely also look at the person's financial situation, including the amount of income he has coming in and the amount of money he has in his bank account. A high income and lots of savings may help compensate for a low credit score, allowing the person to receive better rates.

Auto Insurance

In addition to the money that a person will spend leasing a car, a credit score will also affect the person's car insurance. Because car insurance companies set the price of premiums based on the relative risk of insuring a driver, many look at credit scores for policy holders as a means of measuring financial responsibility. A person with a superior score will be considered relatively low risk and will likely be give a lower rate.