How To Lease A Car With No Credit

Leasing a car with no credit history can be difficult, but there are other options for you to get behind the wheel of a new car. It is possible — provided you are willing to put more money down or apply with a cosigner. You can also consider swapping a lease, and if all else fails, a bad credit auto loan may get you behind the wheel so you can start building a credit history for a future car lease.

Do you need good credit to lease a car?

The average credit score to lease a car was 755 in the fourth quarter of 2024, according to data from Experian. This score falls under FICO’s good credit category, or a score of 670 and higher. This means that most drivers who qualify for leases have strong, established credit scores — which means you may have a difficult time qualifying for a car lease without a credit history.

Can you lease a car with no credit?

Though it may be far more challenging, it still may be possible to lease a vehicle with no credit. In order to qualify, you may be required to provide a large down payment or agree to a higher monthly payment. You may also face higher-than-average interest rates on a lease, largely because the leasing company may consider you a greater risk than applicants with a strong credit history.

Alternatively, you could ask someone who has good to excellent credit to be a cosigner. Having a qualified cosigner on the lease will help lessors feel more confident that payments will be made on time and in full — but finding a leasing company that allows cosigners can be difficult, so work on building your credit history before applying for a lease.

Can you lease a car with bad credit?

You can lease a car with bad credit, but you should expect to pay a higher interest rate, or money factor, than someone with good credit. You can calculate your lease costs before you start shopping to get an idea of what you will pay each month and overall. This will help you make sure leasing a car with bad credit is a good option for your budget.

That said, dealerships may factor in more than just your credit score, including your employment history and debt obligations, when you apply for a car lease. This may help you qualify even if you don’t have good credit.

How to get a lease with no credit

If you are just starting out and don’t have a credit history, there are some options to help you get a lease on a car. In addition, once you do get a lease, the payments help you establish credit so that your next car lease has a better interest rate and lower payments.

Pay more upfront

“Without any credit history, you should expect to pay a bigger down payment and a higher interest rate than average as your lease will be considered to be higher risk,” says Steve Sexton, financial consultant and CEO of Sexton Advisory Group.

In addition to reducing the overall cost of a car lease, and thus your monthly payments, the ability to put more than the average down payment on your car lease could make it easier to qualify.

A large down payment will demonstrate that you are capable of managing your money well, but it won’t reduce your costs. The way the money factor for a lease is calculated differs from a traditional auto loan interest rate, so the extra savings of a large down payment won’t make a substantial difference to the overall cost of your car lease.

Show proof of income

You can also improve your odds of being approved for a car lease with no credit by providing proof that you have sufficient income to make the payments. This could include providing copies of your tax returns, pay stubs or bank statements to the leasing company. If you can provide solid proof that you have a consistent, reliable income, lessors may be willing to work with you despite your lack of credit history.

Get a cosigner

Another option for getting a lease with no credit includes getting a cosigner. A qualified cosigner with good to excellent credit takes on the responsibility of paying the lease if you aren’t able to. The addition of a cosigner gives assurance to the lessor that your payments will be made regardless of your lack of payment history.

“Having a cosigner with good to excellent credit helps to minimize the overall risk as the cosigner is responsible for fulfilling the monthly lease payments if you can’t,” says Sexton. He also advices that your cosigner should have a minimum credit score of 670 or better to increase your chance of approval.

Take over another lease

A lease takeover is another way to get a lease with no credit. Instead of going through the leasing company directly, you approach a leaseholder about taking over their lease. While the lessor still does a credit check, they may be more willing to work with you.

The process of taking over a lease typically involves:

1. Search lease swap websites for available options.
2. Complete application with leasing company, including a credit check.
3. Wait for the leasing company to approve the swap.
4. Finalize your paperwork with the leasing company.
5. Take possession of the car for the remainder of the lease period.

“Taking over a car lease also increases your chances of leasing a car with no credit as it also helps to minimize risk for the lender,” says Sexton. “There’s also a chance you might end up saving money on a car lease in the long run via this route because when you take over a car lease from another lessee, you can potentially benefit from what they’ve already put down on the car.”

There may also be incentives offered that are designed to make taking over a lease more appealing, including having transfer fees covered.

Bottom line

Even with no credit history, it is still possible to lease a car. Take the time to improve your odds of approval before heading to the dealer by saving a larger down payment, finding a cosigner with a well-established credit history or taking over someone else’s lease.

If none of these options do the trick, work on building your credit history and reapplying at a future date. You may also want to look into getting a car loan with bad credit to fund a less expensive car while you improve your credit score.