When you get ready to sign a Toyota lease, you probably know that your credit score and history helped to determine the terms of your deal. Next time you sign a lease or financing deal here at Hall Toyota Virginia Beach, you might be able to secure an even better offer. That's because a Toyota lease can help you build up your credit.
How a Toyota Lease Helps Your Credit
When you sign a lease, you have to make monthly payments for the next two to three years if you want to keep driving your car. When you make your payments on time each month, that reflects well on you.
By the time you reach the end of your lease, you have somewhere between two and three dozen on-time payments to point out to potential lenders. If you keep up with your other financial obligations as well, this can raise your score a little bit.
Leasing can also be a great way to build credit because it is generally less expensive than financing a car would be. A car loan may not hurt your credit, but it can be a factor when other lenders are deciding whether or not to give you money. If they think you are at your limits financially, that could affect your ability to take on another obligation.
How a Lease Can Harm Your Credit
A lease can actually harm your credit score if you're not careful, though. Making payments on time can reflect well on you but missing payments or making them late can make you less attractive to lenders.
If you default on your lease, that's even worse. So be sure that this is a financial obligation you are ready to take on.
If you are ready to lease a new Toyota vehicle of your own, visit our new car dealers in Virginia Beach. We can answer any questions that you have about leasing or financing.
