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Posted in Auto Loans
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LBL0107

4 Contributions
1 Person Helped
Auto Lease or Purchase? Score 750.Goal lowest payment. Need details on how pros and cons of both. TY
ill lease show up as personal loan or more like a cc with % utilization. What happens after lease ends in regards to my score? My end goal is higher score during and after either lease or purchase. Any advice much appreciated.I keep my cc utiliztions under 20%. So, would lease or purchase affect utililization one way or the other? What if I buy out at end of lease or turn in for another lease? How do I avoid multiple hard hits? A leasing company has offered me "best offer" by sending my application to multiple potential lenders. Should I avoid and go direct to each company to see options. I have 3 in mind, but can't have all of those hard hits since I already have 5 over past 2 years. Thanx again!!

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Top Contributor
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it won't matter if they send it to multiple lenders or if you do it directly, it will still result in hard hits to your credit report.   These entries will remain for 2 years.  If you do it yourself, at least you can limit the number of firms.  If the dealership does it, there is litterally no limit as their ultimate goal is to complete the transaction not pay attention to the damage to your credit score.  At the end of the lease, if you renew, there will probably be another credit inquiry, although, how they code it will depend if it is treated as a hard/soft inquiry.  Neither the purchase nor the lease will have any impact on your utilization.  Utilization is mainly used for credit cards.  The out accounts are treated differently, its % of paid to original amount. 

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