When you lease a car, say for two years, do you finance the amount of the payments for the two years? Is that how it shows up on a credit report, as the lump sum of the two years or the full amount of the car?
2007-06-01 07:57:14 · 2 answers · asked by RG 2 in Business & Finance ➔ Credit
I am just wondering which one hurts less on the credit report. I would guess the lease because it would show a smaller amount (2yr worth of payment) the purchasing the car (the full amount of the loan).
2007-06-01 08:33:57 · update #1
Each is a separate transaction, and will appear as such. If you make timely payments on your lease, (or do not), it will appear on your credit report. When the lease agreement reaches termination, you then enter a purchase/finance agreement, and the same concept applies.
2007-06-01 08:08:51 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Any type of agreement you make with a lender will appear on your credit report. Automobile leases and purchases are extremely bad for your credit INITIALLY, but, like any other purchase/lease agreement, if you continually make on-time payments, the longer you have the agreement in good standing the better.
2007-06-01 15:22:38 · answer #2 · answered by Anonymous · 1⤊ 0⤋