is a car lease an installment debt?
At the same time, a car lease or loan adds a different type of debt to the mix -- a recurring installment debt -- and this is a positive factor in determining credit scores. However you slice it, if you're making lease payments or loan payments, your credit score will reflect how you manage those debts.
Installment debt involves paying a certain amount each month over a predetermine period of time. An automobile loan is an installment debt. An interest rate is applied and paid out over say three to five years in most cases. Installment debt payments rarely change as most are fixed rate loans. However, the installment payment can be ignored if there are less than 10 months remaining, boosting borrowing power.