Does having any number of car leases impact one's credit score?
Does it count towards amount of credit debt I have and impact credit usage ratio?
1 Answer
In the US, a car lease is pretty much the same as a car loan for credit scoring purposes. Since payment history is the largest contributing factor to your credit score, timely lease payments are important.
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Does it count towards amount of credit debt I have and impact credit usage ratio?– trusktrCommented Aug 10, 2019 at 16:21
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1@trusktr Utilization is based solely on revolving credit accounts (credit cards/lines of credit), so any loan/lease/mortgage that has a specific end-date does not factor in to utilization.– Hart COCommented Aug 10, 2019 at 16:33
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@HartCO: That's not accurate. Installment loan utilization is computed separately from revolving utilization, but it is computed and it does have an effect. Commented Aug 10, 2019 at 18:00
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@BenVoigt According to all the sources I looked at, including Experian, only revolving credit accounts factor into credit utilization: experian.com/blogs/ask-experian/credit-education/score-basics/… It does say installment loans do factor in 'another way', just not credit utilization rate.– Hart COCommented Aug 10, 2019 at 20:06
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I'm not sure what this is if not a version of utilization rate specific to installment loans: "Proportion of loan balances to loan amounts is too high FICO® Scores weigh the balances of mortgage and non-mortgage installment loans (such as auto or student loans) against the original loan amounts shown on a person’s credit report. Your score was impacted because your proportion of installment loan balances to the original loan amounts is too high." Commented Aug 10, 2019 at 20:19