Hey Markus… how does leasing a car affect your debt to income ratio. And is leasing better for my credit score compared to financing?
Any debt we take on affects out debt-to-income ratio.
But get this:
When leasing a new vehicle, only the balance shows up on our credit file.
If Ashley would have financed the exact same car the traditional way, her debt-to-income ratio would have jumped higher. Not good… because the full price of the car would show up as debt. That would have been at least $26,000.
Instead, less than a third ($8,964) shows up as debt, because it was a lease.
In fact, Ashley could have leased 3 brand new Nissan Sentras and have about the same debt-to-income ratio “hit” as financing just one car.
This is one of the TONS of reasons I will lease my cars for life.