The average credit score for a car rental has increased by three points year over year, according to Experian The data. This continues the trend we have seen over the past few years as the average tenant credit score increased year over year in the second quarter.
There is no universal minimum credit score required to lease a vehicle, but having a good credit score is more common than a bad one. Good credit is generally considered a FICO credit score of around 670 or better.
In Experian’s latest report on the state of the auto finance market, the trend continues and the average credit score for a car rental has fallen from 733 to 736 year over year. Meanwhile, the average credit score for a borrower getting a car loan rose to 729, up five points from the second quarter of last year.
While this does not mean you need to have a credit score in the mid-700s to get a lease or loan, it does indicate that better credit scores are becoming more common among borrowers, both for loans and for leases.
In recent years, the average credit scores of borrowers who lease and those who take out car loans have increased. The current increase in the average credit score for a car rental follows the same trend that has been observed over the past five years. Rental scores averaged 725 in Q2 2017, compared to 733 in Q2 2020 (currently 736). Average loan scores have continued to rise from 715 in 2017 to 729 this year.
Having a score in the Tier One credit rating range usually gets you the lease or loan you’re looking for. If you’re struggling with a low credit score, you’re not necessarily out of the game, it just depends on the lender you’re working with. However, tenants who qualify with lower credit scores are likely to face a higher cash factor rate than someone with better credit.
Also, even if you qualify for a lease with a lower credit score (below 670), you may not qualify for the best rental deals or advertised prices you see. These rates are traditionally reserved for people with the best credit – this means being a primary or super-primary consumer, with credit scores ranging from 661 to 780, or 781 to 850. These are the highest credit score ranges . But, sometimes renting is a better deal than buying, so it’s worth considering if you think a rental is right for you.
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