If you are thinking about a new Volvo, you don’t necessarily have to buy to get a great vehicle. Leasing is another good option, especially when you see our current Volvo lease deals. However, it is important to know what leasing might mean for your credit, so we wrote out this helpful guide.
Leasing Can Improve Your Credit
If you don’t have a great credit score – or maybe no score at all – leasing can be a very good choice. This is because when you lease a car, you sign an agreement that is typically between 24 and 48 months.
As long as you make your payments on time every month, leasing can make a very good impression on credit bureaus and help improve your credit rating.
Or Do Damage
When you first apply for a lease and your credit score gets checked, this will cause your score to drop slightly. Fortunately, it usually doesn’t take very long to recover. And if you are diligent about making that monthly payment, your score will be in great shape.
However, if you miss a payment or even default on the lease, your credit can take a serious hit. While it may sound counterintuitive, paying off a lease early is something else that can hurt your credit score.
Have More Questions About Leasing and Credit?
If you’re looking for more information about leasing, get in touch with our Volvo dealership near Brownsburg. We can also answer your questions about financing, specials, or any of the vehicles we have in stock.