When you plan to pay for something over a period of time, there’s a very good chance that your credit score will be looked at. This is especially true when it comes to cars, whether you’re buying or leasing.
Once you start leasing a vehicle, it is important to know how your credit could be affected. If you’re thinking about a Toyota lease, here’s what could happen to your credit.
The Positive Impact on Your Credit
If your credit score is on the lower side or perhaps you don’t have any credit history yet, leasing could be a very smart move. As long as you make your monthly payments on time, you have a better chance of raising your score and building credit. When your score improves, you may qualify for a smaller interest rate on your next lease.
The Negative Impact on Your Credit
Before taking on a lease, it’s important to know that it could actually hurt your credit. If you always make your payments on time, this will only benefit your score. However, if you miss them or they are routinely late, this will result in your score dropping.
Defaulting on a lease or needing to end it early are also things that can hurt your credit.
Learn More About Leasing at Centennial Toyota
If you have never leased a vehicle before, you probably have questions. To learn more about the process and everything else involved – including your credit – get in touch with Centennial Toyota in Las Vegas.