After successfully completing a consumer bankruptcy, it can be difficult to lease a car since a bankruptcy will remain on your credit report for up to ten years from the date of your discharge. Having a bankruptcy on your credit report weakens your credit score and makes interest rates higher when applying for loans, credit cards or leasing rates. Even with bankruptcy on your credit report, it is possible to lease a car without breaking the bank.
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Raise your credit score. Immediately after bankruptcy, it is imperative that you start rebuilding your credit score. This can be done by taking out a credit card and paying it off in full every single month without carrying a balance. After bankruptcy, interest rates on credit cards will be higher, so it is important to pay off all credit card balances monthly to avoid paying interest charges.
Save money to put down on your car lease. The more money you have on hand for a car lease, the less monthly lease payments should cost. Start saving money as soon as you are able, even while still in bankruptcy.
Shop for car lease options. Start visiting car dealers to find car leases. It is important to have a budget in mind before going to a car dealership, do not let a car salesman talk you into leasing a more expensive car than you can afford. Remembering that you've just come out of bankruptcy, keep your spending habits in check to avoid having to refile for bankruptcy in the future.
Tips and warnings
- Never spend more than you can afford or sign a car lease with a payment that does not fit into your monthly living expenses budget.
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