A vehicle lease does not appear on your credit report, but some facets of the leasing account are shown. Some banks may only report to one credit bureau, while others report to all three. Consider which lease information is reported to the bureaus and how your payment history may affect your chances to pursue other lines of credit.
Lease Account Information
Your leasing bank may report your account information to one or all three of the major credit bureaus -- Experian, Equifax and TransUnion. Various lease account information appears on your credit report. Your report lists your total lease amount, or the amount you're expected to pay toward your lease over your contract term. For example, if you will make a total of $12,000 in lease payments, the amount is shown on your report as the amount you borrowed. The name of the bank from which you are leasing is also listed on your credit report.
Payment History
The monthly lease payment is also listed on your credit report. For example, if you pay $200 per month, the amount is listed as a portion of your lease account information. The number of payments you've already made is also reported, so it changes monthly. If you've made lease payments late, your credit history reflects the number of times you've made late payments and how late the payments were. For example, if you made lease payments 30 days late three times over the course of your lease, your credit report will list "30 3" next to your account information.
Repossession
Repossessions are also shown on your history report. If you brought your vehicle back to your bank, this is shown as a voluntary repossession. If the bank had to seize the vehicle for nonpayment, your credit report shows your car was involuntarily repossessed. Despite the different terms, both types of repossession affect your credit score the same. If you failed to make payments toward your lease after the vehicle was returned -- such as for over-mileage, lease-end fees or other penalties -- your account will appear as past due.
Other Creditors
Other creditors can view the complete payment history on your lease account. If you made every lease payment on time, your account is reported as closed and paid satisfactorily, allowing you to maintain your good credit standing. If you defaulted on your lease, your credit score is likely affected. If your account wasn't paid satisfactorily or on time, you might find it difficult to obtain another lease approval or other lines of credit.
0 comments:
Post a Comment