Can You Lease a Car With Bad Credit? (2025 Guide)

Many drivers worry that a poor credit history will stop them from leasing a car. Rejections, higher deposits, or inflated monthly payments can feel frustrating when you just need a reliable vehicle.

The truth is — yes, you can lease a car with bad credit. This article explains how it works, what credit score you’ll need, and the steps you can take to improve your approval chances in 2025.

Can You Lease a Car With Bad Credit?

Yes. Even with a low or poor credit score, leasing is possible — but lenders will view you as higher risk. This often means:

• A larger initial rental or deposit

• Higher monthly payments

• Limited choice of vehicles or mileage terms

Car Leasing companies don’t set one “pass or fail” score, but most prefer applicants with a credit score in the “fair to good” range (typically 600+).

What Credit Score Do You Need to Lease a Car?

Here are typical categories used by UK providers:

• Excellent (700+ with Citygate, 881+ with Experian):
  You’ll have the best approval odds and can secure the most favourable leasing terms.

• Good to Fair (650–699 with Citygate, 600–699 with various lenders):
  Approval is possible, but you may need to pay a higher deposit or work through a specialist broker.

• Poor (below ~600):
  Leasing is still possible, but expect stricter terms, higher costs, or more detailed checks on your finances.

Tip: Check your credit score with Experian, Equifax, or TransUnion before applying, so you know what to expect.

How Does Car Leasing Affect Your Credit Score?

Leasing a car is a form of credit. Once approved, making payments on time can help build or improve your score. However:

• Missed payments will harm your credit history

• Too many applications in a short time create “hard checks” that may temporarily reduce your score

Tips to Improve Your Car Lease Approval Chances With Bad Credit

1. Consider a larger upfront payment → lowers lender risk

2. Choose a cheaper or smaller vehicle → easier approval than luxury models

3. Apply for a joint lease (guarantor) → spreads the risk

4. Check your credit report for errors → dispute and fix them before applying

5. Work with a specialist bad credit leasing broker

Car Leasing Alternatives if You’re Declined With Bad Credit

If you’re refused, don’t panic. Other car finance options include:

• Hire purchase (HP) – you own the car after payments

• Personal contract purchase (PCP) – flexible balloon payment at the end

• Short-term rental – useful if rebuilding your credit

No-Deposit Car Leasing Options for Drivers With Bad Credit

For some applicants, a no-deposit lease can be appealing. Instead of paying a lump sum upfront, costs are spread evenly across the contract.

Final Thoughts: Leasing a Car With Bad Credit in 2025

Bad credit doesn’t mean you can’t lease — it just means preparing differently. By knowing your score, improving your credit, and exploring options like No Deposit Car Leasing, you can still drive the car you need in 2025.