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Does Progressive Leasing Affect Your Credit Score?
July 1, 2025
Quick Answers
Applying for a Progressive Leasing agreement typically does not impact your credit score, as it usually involves no hard credit inquiry.
Progressive Leasing reports payment activity to select credit bureaus, so your payment history can influence your credit score over time.
While on-time payments can help build credit, initial approval often does not require an established credit history.
What Is a Progressive Lease?
A progressive lease is a type of rent-to-own agreement that allows you to take home items like furniture, appliances, or electronics immediately without paying the full price upfront. Instead of traditional financing, you make scheduled rental payments over a specific period. At the end of the lease term, you typically have the option to purchase the item and gain full ownership.
This type of arrangement is often accessible to individuals with poor or no credit history because many providers do not perform a hard credit inquiry. While timely payments may not be reported to the major credit bureaus to help build your credit score, defaulting on the agreement can still have negative financial consequences. Therefore, it serves as an alternative to conventional loans or credit cards for acquiring necessary goods.
How Progressive Leasing May Impact Your Credit Score
While Progressive Leasing's standard payments are not typically reported to major credit bureaus, defaulting on your agreement can trigger a chain of events that may negatively impact your credit score.
- Initial Application: Applying for Progressive Leasing usually results in a soft credit inquiry, which does not affect your credit score. This allows them to review your credit history without causing a negative mark.
- Routine Payments: As you make your scheduled lease payments, this activity is generally not reported to the three main credit bureaus (Experian, Equifax, and TransUnion). Consequently, on-time payments do not help build your credit history.
- Default on Agreement: If you fail to make payments and default on your lease-to-own agreement, Progressive Leasing may consider the account delinquent and take further action to recover the owed amount.
- Sent to Collections: After a default, the debt may be turned over or sold to a third-party collection agency. This is the critical step where your credit score becomes vulnerable.
- Negative Credit Reporting: The collection agency will almost certainly report the delinquent account to the credit bureaus. A collections account is a significant negative event that can lower your credit score and remain on your report for up to seven years.
How Much Will Progressive Leasing Affect Your Credit Score?
While Progressive Leasing doesn't report your payment history to the three major credit bureaus, certain situations can indirectly affect your credit. Here are the primary factors to consider:
- Default and Collections. If you fail to make payments, your account could be sent to a collections agency. This action is reported to the major bureaus and can significantly harm your credit score.
- Future Loan Applications. Lenders consider all financial obligations, including leases, when you apply for new credit. This can affect your debt-to-income ratio and your ability to secure future loans.
How You Can Avoid Progressive Leasing Affecting Your Credit Score
Make Timely Payments
The most crucial step is to make all scheduled payments on time. While timely payments aren't reported to build your score, Progressive Leasing can report defaults to alternative credit bureaus or send the account to collections, which will negatively affect your credit history.
Review Your Agreement Carefully
Before committing, thoroughly read your lease-to-own agreement. Understanding the full payment schedule, total cost, and any late fees is essential. This knowledge helps you budget properly and avoid missed payments that could lead to negative reporting and damage your credit score.
Ways to Improve Your Credit Score
Your credit score plays a crucial role in your financial life, but it's not set in stone. While improving your score takes time and consistent effort, most people can see meaningful changes within a few months by taking actionable steps to build their creditworthiness.
- Make timely payments. Your payment history is the most significant factor in your credit score, so setting up automatic payments can ensure you never miss a due date.
- Reduce your credit card balances. Aim to keep your credit utilization ratio below 30%, as paying down balances is one of the quickest ways to improve your score.
- Check your credit reports for errors. You are entitled to free credit reports from the three major bureaus, and disputing any inaccuracies you find can provide a swift boost.
- Limit new credit inquiries. Too many hard inquiries can temporarily lower your score, so it's best to space out credit applications and use prequalification tools whenever possible.
- Maintain a diverse credit mix. Lenders like to see that you can responsibly handle different types of credit, such as credit cards, installment loans, and mortgages.
The Bottom Line
Progressive Leasing does not report to the three main credit bureaus, meaning it won't build or harm your credit. Defaulting on your lease, however, can lead to collections and damage your score.
Frequently Asked Questions
Does Progressive Leasing report to credit bureaus?
Yes, Progressive Leasing reports your payment history to select credit bureaus, such as Experian and Clarity. Timely payments can help build a positive credit history.
Will applying for Progressive Leasing hurt my credit score?
Applying for a lease-to-own agreement with Progressive Leasing typically results in a soft inquiry, which does not impact your traditional FICO credit score.
What happens if I miss a payment to Progressive Leasing?
Missing a payment can lead to late fees. Since payments are reported, late or missed payments could negatively affect your credit history with certain bureaus.
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