Briefly about the role of credit history in car leasing!

1) Credit Rating or Credit Score:

– The higher the credit score, the better the car lease price is. Perfect credit score starts at 720+

– The credit score number itself  doesn’t mean much if you have never had a car on credit or lease. In this case, you will be a “First-Time Buyer”. This is absolutely not a problem for us, but some price changes are possible. Each individual case is different, but we can solve it 100%!

– The credit score number can change many times a month, depending on changes in your credit card accounts and other loans …

– Checking your credit history through specialized services (such as Credit Karma or directly with the credit bureaus) does not affect the credit score in any way.

– Any request made for a loan (credit card, car) reduces your credit score by 3-10 points and, most importantly, reduces your chance of getting a loan in the next six months.

– The Credit Karma service gives an inaccurate number of your credit score, it can be very different from reality! The best way to check is directly with the credit bureaus! Once a year you can do it absolutely free!

– Never close your very first credit cards (credit history is of great importance)

– Use the credit limit to the maximum, BUT MANDATORY:

– Repay a credit card in $ 0 at the due date (payment date) this is not to pay interest on the loan

– Leave 1% – 10% debt from the amount of the credit limit (maximum 30%, but ideally up to 10%. 0% is also bad).

2) Factors affecting credit history:

– Length of Credit History (15% of a FICO Score);

– Amount of Debt (30% of a FICO Score);

– Payment History (35% of a FICO Score);

– Amount of New Credit (10% of a FICO Score).

– Credit Mix (10% of a FICO Score)

3) Credit limit on credit cards.

Please be patient and read a very interesting and useful article about credit limits and the reasons why they should be constantly increased:

https://www.creditcardinsider.com/le…/credit-limit-increase/

4) The difference between debit cards and credit cards.

American life directly pushes towards life on credit; although, to be honest, I strongly advise against actively using credit cards! Except in cases of building credit history and security of payments and using it with a high level of financial responsibility! In America they say: “you take someone else’s money, and you give yours”!

Here is an another  interesting article:

https://www.creditcardinsider.com/…/debit-cards-vs-credit-…/

To be continued … Correct me if I am wrong about anything!

P.S. Feel free to ask all your questions about the role of credit history in leasing or car financing, building and correcting credit history. It is very IMPORTANT to prepare your credit history at the time of leasing or car financing. It is better to spend a couple of weeks raising your credit score and getting the right advice, than overpaying thousands of dollars later over 3-5 years!

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