@Anonymous wrote:
Hello good people
Question about auto lease and credit reports and credit scoring.
When leasing a car, how is the lease reported on credit reports?
when a person applies for the lease or finance , how is credit score affected?
Would a person just take the credit inquiry score drop?
Or would the loan or lease itself drop score?
How much the lease or loan for car affect score, how much would score go down?
Asking because I may be leasing a car within the next 6-8 months.
My scores are as followed
TU 757
EX 719
EQ 642
Equifax is lower because there are two medical collections Smh
TransUnion and Experian deleted the same medical collections that Equifax isn't deleting. What should I do about those two medical collections??
I have recently picked up Bank of America secured card , Capital One Secured card and a selflender installment loan.
I also have a AU account with 44 months of on time payments.
Secured cards and installment hasn't reported yet.
An auto lease is treated like a car loan.
If you have no existing open installment loan, you will gain points in FICO 8 for having an installment loan in your credit mix, and you will lose points because the utilization percentage will be high, and because of the inquiry and the new account. Whether the point gain outweighs the point loss... I don't know the answer to that.
I leased a car in August 2016. In Sept. I added another CC. In Oct. I did the same. My IRQs were about 4 on each CRA. My AAoA was around 1 year. My FICO8 scores were in the 770-780 range.
It had a strong affect on my scores because of my short credit history. My FICO8 scores had an average drop of 40 points.
I kept my utilization down under 4% overall. Twice one CC reported an 18% utilization.
It took about 11 months for my scores to recover. Now they are all over 775.
One thing would recommend to you is to get your FICO Auto Scores. Depending on the car you need a certain score to get the best lease rates. As I recall and I might be off here BMW only requires about a 675 auto score while Toyota requires a 720.
There are people in the Auto Loan section of MyFICO forums who keep up to date on all the info you need.
