Bad Credit Van Lease: Can I Lease a Van with Bad Credit?

Bad Credit Van Lease: Can I Lease a Van with Bad Credit?

Bad Credit Van Lease: Can I Lease a Van with Bad Credit?

One of the most common concerns among car buyers is whether bad credit van lease is possible. The straight answer to this is that it is possible. However, there is a catch-it becomes difficult to secure a low-interest financing loan. Leasing is, without question, the ideal option for anyone that has bad credit given the low monthly payments that make it possible for the majority of buyers to afford it. You can learn more about van leasing with bad credit in this comprehensive write-up.

Pre-requisites for Van Leasing with Bad Credit

Even though leasing might be one of the easiest ways of procuring a van, it does not always work for everyone. Lenders will want to review a number of things before they can approve your application. These requirements may vary with the firm, but there are more general requirements that tend to be common across the board.

Businesses applying for a lease a van with bad credit have to provide below:

  • A 3-year address history of the business.
  • The director will act as the guarantor of the business.
  • Company’s balance sheet, account history, and positive trading proof.
  • Any country court judgments.
  • Driving license.

If you are a sole trader applying for a van lease, then you need to avail the following:

  • 3-year address history at a bare minimum.
  • Marital status and number of dependants.
  • Your three-year employment history.
  • Bank statement showing recent monthly inflows and expenditures.

A finance firm might request more information asides from the above in case the business has been in operation for less than a year. You might also have failed to secure finance in the past and the lender may request for additional information such as a 3-month banking statement.

Once all the requirements have been submitted and you are deemed eligible for the van lease, then you can gladly anticipate the delivery of your new van on the scheduled date.

A poor credit score, past cancellation of finance, and failure to make repayments in the past might hamper your application for a van lease.

Credit Score Effect on Bad Credit Van Lease

Credit Score Effect on Bad Credit Van Lease

As explained earlier, finance firms will review your credit score when considering an application for a van lease. It, therefore, goes without saying that your credit score affects your eligibility for a van lease.

Credit scores are normally set from 300 to 850, with the higher score being an indicator of a better credit history. The majority of lenders for van leasing tend to consider a credit score that is more than 660 since this falls within the equation of what is deemed as a good score. Conversely, a score of 600 and below indicates a bad or poor rating and anyone that falls within this score will have a difficult time securing encouraging lease terms.

A credit of 720 and above will give an applicant the chance of qualifying for a more competitive offer and fewer monthly repayments on the leased van. Therefore, your credit score will hugely affect your chance of qualifying for a van lease.

The minimum credit score for a van lease is 620 though some lenders can accept scores of 600. Others have programs that do not consider excellent credit ratings prior to approvals. These programs however have some additional fees and restrictions underneath. Thus, you have to thoroughly review the paperwork before you append a signature to them.

Other prerequisites that accompany the credit score include factors such as a steady income, upgraded insurance to lease the van, proof of residence, and references such as from landlords or employers.

Can you improve your Credit Score?

A bad credit score can certainly be improved if this is holding you back from getting a van lease approved. You can improve your credit score in the following ways:

  • Review credit report-your credit score is determined by a credit report that has your credit history. Your first step is therefore to ensure your credit report is accurate and has not been co-mingled with another individual’s information.

Review credit report

  • Work on pending debts-you should work on your debt balances and that means reducing them regularly and consistently. This will improve your credit rating in the long term. You can develop a budget and devise a plan that will help reduce unnecessary expenses and channel these funds toward clearing your debts.
  • Be disciplined with bills-ensure all your bills are paid on time every month since your payment history is considered by some bureaus while determining your credit score.
  • Minimize new credit inquiries-keep hard inquiries at a minimum by only applying for new credits when necessary. Every new application tends to generate credit inquiries that suggest you are experiencing financial problems. This is bad for your credit score.
  • A mix of credit types-an applicant with a healthy mix of different credits has a better chance of securing credit and tends to have a better credit score. This is attributable to the fact that lenders get the impression that the applicant is able to responsibly manage diverse forms of debt.

How to Lease a Van with Bad Credit?

It is possible for bad credit van lease, though this comes with a higher deposit and higher monthly repayments.  Buyers with bad credit can get approved van leases by doing the following:

  • Find a van within your budget-this means the buyer has to be able to manage the monthly payments.
  • A used van may be an option-a certified pre-owned or used van can work just fine if you are considering van lease bad credit. As a matter of fact, buyers can easily find higher-mileage vans that are well-maintained within their budget.
  • Check your credit score-this should be your first task even before you submit an application for a van lease. Once you have a clear picture of how your credit rating looks then you can tell if you can qualify for a lease. It can also give you a chance to work on improving the score before seeking a van lease.
  • Make a large down payment-lenders will be more lenient with your credit rating and will most likely grant better lease terms if you pay in advance for the first months.
  • Proof of income-a bad credit score resulting from past financial hardships can be overlooked if you can prove to the lenders that you are now in a position of settling your obligations.
  • Good personal credit score-if applying for a business lease then good personal credit can help secure credit for your business. This will apply if your business has been in operation for a short time or has a bad credit rating.

The downside to Leasing a Van with Bad Credit

The downside to Leasing a Van with Bad Credit

You can you lease a van with bad credit but this comes with its share of disadvantages. These include the following:

  • Unfavorable interest rates-you will most likely incur a higher interest rate due to a lower credit score and that translates to huge monthly payments for the lease.
  • Limited van options-you are subjected to limited van options by the various dealerships since you are considered a high-risk borrower.
  • Large security deposit-some lenders might demand a large security deposit for this to serve as collateral.
  • Rejection of application-a low credit score might result in outright rejection of your application.
  • Guarantor or co-signer-a bad credit score might mean being requested to look for a co-signer or guarantor.

Alternatives when Application Van Lease Fails

An application for van leasing bad credit can fail and that does not mean it is the end of the world for the applicant. You have other alternatives that can help you get a van without stretching your bank balance. These include:

  • Van-sharing service-you will find deals with car-sharing services within your location and this can help solve your van rental problems.
  • Buy a used van-you can use your cash to buy a used van instead of going for the expensive option of leasing a brand new van. This will give you the time to save money over the long haul and afford a better van. The used van helps avoid the interest payments and still enjoy the benefits of owning the van.
  • Credit arrangements with dealerships-there exists some dealerships that offer in-house credit without the reliance on traditional bank loans. These dealerships tend to favor individuals with bad credit. However, be prepared to pay a higher down payment and interest rates.
  • Lease transfers-this is a practical option for buyers with bad credit. It allows the swapping of a van lease from one individual to the other.


Buyers considering van leasing with bad credit can be able to access credit once they understand how to increase their chances of getting their application approved. A finance lease for a van is similar to a credit card or loan application, and that means the finance companies investigate the applicant’s credit history prior to the approval of their application. The applicant should, therefore, check their credit history and credit score before applying for financing. If their credibility looks bad and want to know about bad credit van lease, then they can employ the recommended strategies to improve their chances of securing finance despite their poor credit van leasing position.

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