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Buying vs Leasing Car make any difference to credit score?

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olivia3636
Established Member

Buying vs Leasing Car make any difference to credit score?

I will be in the market to buy/lease a car in 3 - 6 months and buying a house 12-18 months, and I am wondering if leasing vs buying a car will make any difference in credit score. Does it make any difference?


Starting Score: 650 TU FICO (8/29/12), 642 EQ-FICO (8/29/12) 606 EX (8/29/12)
Current Score: 787 TU FICO (8/10/15), 786 EQ-FICO (8/10/15), 786 EX (8/10/15)
Goal Score: 800 across all scores


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4 REPLIES 4
Shogun
Moderator Emeritus

Re: Buying vs Leasing Car make any difference to credit score?

I really don't think it will make a difference.  It would still show as an installment loan.  You would take the hit for your AAoA and Inquiries.  But that will will be aged plenty by the time you app for mortgage.  Just keep an eye on your DTI.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 5
olivia3636
Established Member

Re: Buying vs Leasing Car make any difference to credit score?

If I have had an auto loan before that I paid off early will hat hlep or hurt my auto enhanced score?


Starting Score: 650 TU FICO (8/29/12), 642 EQ-FICO (8/29/12) 606 EX (8/29/12)
Current Score: 787 TU FICO (8/10/15), 786 EQ-FICO (8/10/15), 786 EX (8/10/15)
Goal Score: 800 across all scores


Take the FICO Fitness Challenge

Message 3 of 5
Shogun
Moderator Emeritus

Re: Buying vs Leasing Car make any difference to credit score?

If you paid on time and had no lates, it will be a positive factor.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 4 of 5
LS2982
Mega Contributor

Re: Buying vs Leasing Car make any difference to credit score?

I agree with Shogun it will show up as an installment loan either way so no real difference in score.

@Olivia it should help you that is PIF regardless of early payoff or not.



EQ FICO 548 3/3/16
Message 5 of 5
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