topic Re: First Lease Impact in Auto Loans

First Lease Impact

TwinGirls19 — Wed, 19 Sep 2012 18:49:37 GMT

So guys i got my first ever lease , 2 years 350 a month, my scores are 630 ish 640ish. As you all know midland, my only collection agreed to delete just got the letter today. My question is after 2 year lease is up no lates and paying on time, will my score jump? What have been some of your gains score wise after first lease??

Re: First Lease Impact

llecs — Thu, 20 Sep 2012 02:02:40 GMT

I never leased, but it would be viewed as an installment TL. IME, when adding a mortgage and personal loans (both viewed as the same), I lost but added points over time and regained it all back within 6-12 months. You really don't gain points by having an installment, but like with any TL, the age will help over time.

Re: First Lease Impact

TwinGirls19 — Thu, 20 Sep 2012 13:05:17 GMT

thanks llecs!

Re: First Lease Impact

Snoopy7 — Thu, 20 Sep 2012 13:15:46 GMT

TwinGirls19 wrote:
So guys i got my first ever lease , 2 years 350 a month, my scores are 630 ish 640ish. As you all know midland, my only collection agreed to delete just got the letter today. My question is after 2 year lease is up no lates and paying on time, will my score jump? What have been some of your gains score wise after first lease??

Your FICO score can change over time. I'd like to highlight that most auto underwriters look at your "Auto Enhanced" score. When you check your FICO, depending on your autoloan paying history, this score can be significantly higher or lower than the FICO you will see on your report. I recently had a EQ FICO of 639 when I pulled it a few Saturdays ago. Not even an hour later I was at the Credit Union applying for an auto refi when my "Auto Enhanced" showed 674. I pay my auto loans on time all the time. My branch manager stated that if I keep doing this, I'll easily be in the 700s not too far out.

I thought about getting a lease on a 2013 Lexus ES350, boy do they look nice. However, I'll keep the current Lexus I have for the long haul, unless it's totaled or something.