Last updated on April 18th, 2023 at 11:18 pm
Tesla credit application is one of the different ways to get your hands on a Tesla model car.
Through the financial request program by the same company, you can request a vehicle on credit.
Depending on use, preference, and economic power, you have lease or loan options. The credit application is online. Hence your request can remain pending longer than expected.
Forty-eight hours is the average period it takes to process and confirm your credit decision. Sometimes, the whole process only takes minutes. However, if it remains pending or denied, there are specific criteria to check and improve. A better financial status helps you make faster credit decisions.
How Long Does the Tesla Credit Decision Take?
It takes 48 hours for Tesla to decide on your credit status. These only take a few minutes for those that meet the proper criteria.
Old customers with a reputable credit history also have their decisions reviewed and sent in a few hours. However, it might take more than two days.
You can relax and check your status using the “payment method” section on your account. You might need to review your application details if it remains pending for a long time.
Also, if the request is not approved, you need to be more familiar with the credit decision requirement.
What Credit Score do you Need for Tesla Financing?
A credit score of about 720 is what you need for Tesla financing. This figure is the lower limit under the Excellent Credit Score chat.
Note that Tesla does not display its minimum credit score. However, the frequency of confirmed requests helps you to know the unwritten rule.
The Excellent credit score is a requirement if there is to be any guarantee that the company will grant your request.
However, if you have a very good credit score close to the above mark, you can apply to see if you will get approval. Alternatively, you can improve the score using various steps.
A credit score is an essential factor worth considering for several reasons. It shows your capability in handling loan and lease situations.
Here is a table showing the range for Credit Score and their category according to Equifax
Note that this is just one categorization chart. Several others categorize the credit score a little bit differently.
There are different ways to improve your credit score. Some options include the following:
- Reducing the frequency of opening new credit accounts.
- Paying down the revolving credit balances.
- Building a reputable credit file by making pending payments on time.
These steps help you to build up your credit score, making you eligible for the minimum requirement.
How Hard is it to get Approved for a Tesla Lease?
Lease is the second method of Tesla financing. This method is much easier compared to the loan method requirements.
Due to the conditions necessary for the Tesla lease, it is not hard to get approval. Unlike a loan, the lease has a low monthly payment requirement.
There are three Tesla models available for lease. Each model has a different payment duration. Also, the duration can be an advantage depending on your choice of the Tesla model.
- Model X and Model S provide a leasing duration of 24 to 36 months
- Model 3 offers a lease period of 3 years
This flexibility in lease options also allows you to select the correct type of lease that works with your financial power.
Another point that works in your favor is the number of available states and cities. The lease option is available in more cities than the loan option.
It is available in 43 US states, making approval easier. All these options make the lease approval easy to get.
Does Tesla check Credit for Lease?
Yes, Tesla checks your credit for the lease option too. This step is not available for only the loan option.
Hence, it would be best if you had a good credit score to qualify for the lease option.
Checking the credit helps to decide your eligibility. It also helps the company to advise on the best lease plan for you.
Five Reasons why Tesla Declined Your Financing Request
Applying for Tesla’s financial assistance is straightforward. However, it sometimes gets difficult to get approval. If you have difficulty approving your request, consider these five common reasons.
These are the likely reasons why Tesla is declining your request:
1. Short Credit History
If you are new in the lease and loan arena, you probably don’t have much credit history. This criterion is essential to the company.
Your credit history gives details on your payment patterns and credit reliability.
Even if you have made prompt payments during previous loans, it might not be enough to establish your credibility.
You need more loan accounts to improve your credit history. It sounds slightly ironic, but that is how credit history works. When you have a credible credit history, reapply and hope it works.
2. Income Detail
Your income statements must also be good if you enjoy this program’s benefits. Tesla will check your income details to confirm reliability.
The exciting part is that this check is comprehensive. The company looks into several factors.
During the processing, you will have to submit your employment details, including the details of your annual income.
Some of the factors checked is the stability of the income irrespective of the amount.
If it is not deemed stable due to the employment type, then Tesla might decide to decline the request.
On the other hand, if it is stable but deemed too low for your loan details and requirement, the result is the same.
Tesla considers the level of pending loans and payments when you have a high and steady income.
If the pending debt is high, then the request is not accepted. These checks show that the review of your income details is comprehensive.
3. Low Credit Score
A credit score is essential when up for financing consideration. It depicts your capability to pay a loan. It is a summary of a person’s financial statement.
Having a good credit score is one thing. Meeting the financing request by Tesla is another.
A good credit score of about 720+ is required if you are to get approval for your financing request.
Be assured that Tesla will check your credit score before processing any financing. A good credit score gives you more chances of approval.
However, note that the credit score requirement is unavailable, and there is no certainty. Such a request changes based on income level, loan term, and other features.
But good credit indeed works in your favor. If it is not high enough, then Tesla might decline your request.
You can reapply for a Tesla financing request when you improve your credit score. That depends on whether you excel at other criteria.
4. High Financial Request
After all the various criteria and qualifications, the entire decision still lies at Tesla’s discretion. They decide if your choice of request is too high or not.
If the company determines that the amount involved in your request is too high, they might turn down the application. It is the final step in the process.
This evaluation step is common to all loan requests, not just with Tesla. If this is the problem, there are a few ways to solve it.
You can increase your initial payment to cut down the loan plan. Another option is to choose a lower or less expensive financial request.
5. Application Error
Sometimes, simple errors can be the reason for Tesla declining your financial request. The entire process is online, making inputting your details easier.
Ironically, it is also effortless to make mistakes during the filling process. The tricky part is that you might know exactly why the request is not gaining approval.
A simple error with the social security number that does not match your name will affect your bid.
Essential details such as personal profiles, employment information, and others must be accurate. Be sure to double-check your details before sending.
Tesla financing is a way to help you through your journey to car ownership. There are various methods available to potential Tesla users.
The cash method is always available for you. However, if that seems too difficult, you can choose between the lease or loan methods.
All these options are part of the Tesla financing. With the suitable qualification, you can get approval for your financial request.
Hey, I’m Michael Davis, a 35-year-old with a degree and a love for cars and tech. Since I was a kid, cars have been my thing—so much that I even thought they ran on magic beans! Fast forward, and I’ve built Vehicle Army, your one-stop-shop for easy-to-understand car facts.