Credit score 550, can you lease and what MF can you expect?

Sorry for cheesy pun. I’ve been reading about cars and I would to hear thoughts please. Background: screwed credit up last year. Currently like 550 (Hospitalized in 18’ couldnt work). I have a family member willing to cosign (800 Cred Sc). I am working, healthy, job pays 80K a year. Hopefully the combo qualifies for a loan.

Should I lease (I hear lower payments/less down) or should I buy used and take a loan? With debt to pay and wanting to rent my own place again…could anyone provide direction?

Also this is important. I work a lot. I travel for work. I was in the UK last month. South Carolina next week. Would this be possible to do all online?

Ideally I just want to walk into a dealership prove identity and get keys (cosigner is parent/same address).

Any help is greatly appreciated. Thank You

Yes completely possible, in fact most people recommend NOT negotiating in person but rather via email/phone. For me personally, I spent less than two hours in the dealership after agreeing to my last lease deal entirely over email. That included a test drive, signing all paperwork, and a 45 minute walk through of my vehicle and all the features.

Also, there are plenty of brokers that will do all the legwork for you for a fee, so if you’re too busy with work and don’t want to pursue a deal yourself, this might be an option.

What are your needs in a car? How many miles a year do you drive if you’re constantly traveling for work?

Doubt a cosigner would work with that score, sounds like you need a straw deal

Car loan will still bite him in the :peach:

really? In a soft pull on my credit score I got two offers. Now I am sure interest rates I will be killed. It’s a shame one bad year (really 1/2 a year)…but would you say loan over lease or lease over loan in a situation like that?

I thought lease was lower payment/less down. I want to begin repairing my credit which was over 700 last year this time.

Anything under 600 would be a no go in my opinion, but maybe others have a different opinion

You need to get a really small auto loan to minimize the interest you’re going to pay while rebuilding your credit and auto score


Well that is why I was using a cosign. Without that I could not. They have an 800 score.

Plus job wise I make decent money. If it factors in I have never been fired or jump from job to job. I have only had 4 in the last 14 years. Graduate level education. I was hospitalized and that crushed me.

That is why I was thinking lease.

Would you say that over loan?

I have a Honda Civic with like 84K on it. But front bumper is a little banged up. They sit way too low to the ground. I think the trade in value is like 75 dollars

That is something I do not understand. If I take a loan out to buy a used car. I understand that. The loan is for the eventual ownership of a car.

But a lease what am I taking a loan out for?
I do not own the car. I can afford monthly payments. So is the loan for the guarantee of the monthly payments of my lease? And I am paying back this loan over the course of the lease.

Or will I be paying for a lease and a loan?

Keep driving the civic until your score is back up


I cant. Nor do I want to. That is not the issue.

Neither is will I or will I not be able to get a loan. I can. I went into a dealership as well and they told me they would be able to work something out with a cosign.

I know I am going to pay because of the credit score…

The question is what would give me a lower payment a lease or a loan?

Thank You for the reply.

I wonder how the cosign would apply to doing everything online

There’s too many variables to answer that question, you’ll have to do some leg work to figure that out. I’d get some numbers and post them here for evaluation, they can say whatever they want but until it’s approved it’s just hearsay. At some point you’ll need to go in and sign paperwork, you can’t do everything online.

A credit union loan would probably be the best bet. There are leases on vehicles with an MF that is really low, but that doesn’t mean they’re good value leases or you’d be able to afford the monthly. Way too many numbers just to fixate on MF.

The dealership I spoke to is the one my mother and step father just bought their car from about a month ago. Their financial said he would be able to do something that way. That is how I know my score. …I would have to get a hard credit pull for the exact numbers of the other two. Which only included my information.

You are saying there are still too many factors to give an opinion on a lower payment? Car wise I truthfully do not care about. I want something to get from point A to B. I do not drive a ton for work. Its around 15 miles round trip. Travel for work is all plane.

I saw a 2018 Trax by Chevy for about 15,300 to buy used 12,300 miles on it. So I was thinking…should I take a loan to buy. Or should I just least for now for a lower payment.

I am not sure how they factor in my 550 with their 800 score to determine a rate. How do you do that without people running your credit?

I wish you luck

I have spent a decent amount of hours of my free time over the last 3 weeks trying to do “leg work” and honestly I have no clue still. Maybe I am defensive but I do want to say I have a master’s degree and two bachelor degrees yet I feel stupid when it comes to this stuff and I have very little answers for the time already I’ve already dedicated. This is not any way based on any of your answers which I appreciate you all taking the time to read and answer.

If I start getting quotes. That is going to hit against my cosigner’s score. So I wanted to get as much information at once. In going to whatever institution to ask a loan I need to be able to answer for a loan…or lease…or how much…how would I know what to answer? It is not that I want something specific.

Also if possible do it completely through online. The person signing my loan was at a dealership almost six hours. I do not have that patience.

Bad credit can turn a good deal into a bad one in a hurry.

Wish you luck but don’t expect miracles.

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I would go back to basics and not just look at the interest rate.

Clearly the long term aim is to improve your credit rating. The best way to do that is with smaller forms of credit over shorter periods, in a piecemeal approach. If you have a solid income now a Credit Union is the best bet as they normally have less stringent criteria for loans and other credit products.

Personally with the higher cost of credit and/or involving a co-signer I would look for shorter term loans on older, lower value vehicles but that are in good shape or that have some kind of CPO coverage. It might mean driving around in a less than great vehicle but you’ll lose less on the interest paid, less on the depreciation, and a shorter term loan will still help you credit-wise.