Hi All,
Back in 2017, I was in a job crisis and incurred around 15 late payments on my credit cards. Later my situation got better and my current credit score is 720+ on all the 3 credit bureaus. I’m planning to lease a car, but I’m worried about the late payments in my credit reports and how they affect my approval/rate?
Any thoughts?
Thanks,
TJ
If the late payments are still on the report, they can surely affect your approval, rate or required down payment. Even if your score is assumed to be good, the actual report carries more weight.
Since your credit score is back up I think you will probably be in good shape. Also, you car payment history will have more weight then credit cards when it comes to leasing another car.
I don’t think Accounting Departments look at Credit that way. Any Derogs immediately show up faster than ‘good payments’
The actual credit score can vary depending on who is asking for it. Let’s sa someone has a few late credit cards payments but has paid 4 car loans/leases perfectly then if applying for a credit card the formula used may return a 674, but the same report being pulled weighted for a new car may come back at 723 because similar types of credit are weighted heavier. Also some banks will even negotiate on fees and interest rate for repeat clients. Like if someone is applying for a lease through Chase bank and has a 694 score, but needs 720 for the .9% promo, a customer with 3 previous Chase car loans may qualify for the 720 rate by calling the bank. Or perhaps the lender waives a $395 acquisition fee, again for a repeat client.
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