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Leasing and your credit score (DOC)


Car-leasing has been lauded as a more attractive alternative to buying, offering in the process the flexibility to drive a new car for less. The reality, however, is that leasing is an option that is fraught with many pitfalls for the average customer. Leasing regulation does not require as much disclosure as buying a vehicle. This has given rise to many leasing scams that trick the customer into believing they are into a good deal when, in effect, all he is getting is a rough deal on the dealer抯 terms.

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									Leasing and your credit score.

Your credit score is part of the leasing decision. When you apply for a

lease, your lease company will typically look at your credit score to

decide whether you to approve the application.

The leasing contract stipulates that you make regular, monthly payments

over your lease term. The credit score you lease company requests

identifies how likely you are to make such payments. It is simply a number

calculated according to a model that takes into account your payment

history, any amounts you owe and credit currently in use.

It is very important to keep a good credit-score, usually above 700, to

qualify for a lease or any other lending decision. Start by ordering your

credit report from Fair Isaac Corp, the company that creates your credit

score. If erroneous data is held about you, then contact the creditor

responsible and get such information corrected.

Your payment history is the single most important factor in determining

your credit score, so get in the habit of paying everything you owe on time

and keep the balances low in your credit cards.

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