Visitor IV

Does leasing a car raise your credit score?

One thing I do pay for as a student is my car payment once a month. I was wondering if this helps raise my credit score?

3 Comments
Member II

Does leasing a car raise your credit score?

Great question! I want to see the answer!

TurboTax Specialist

Does leasing a car raise your credit score?

It can over time. 

 

Initially, your credit score may take a hit when you first established the lease. But over the term of the lease and if you make on time payments, your payments may increase your scored. On time payments of any loan/credit is a huge % of your credit score (around 35%).

 

Late lease payments will adversely affect your score-bringing it down.

 

 

Visitor II

Does leasing a car raise your credit score?

Hi,

 

The simple answer is yes.

Any financial transactions that resulted in monthly installment, if paid on-time each month, is one of the best way to bring up your Credit Score.  If you set up auto pay, this will ensure your payment will never be late (unless there is lack of fund for withdrawal).

 

Good luck.