With Approved Credit (WAC)

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With Approved Credit (WAC)

What Is a With Approved Credit (WAC) Statement?

A with authorized credit statement, or WAC statement for short, is a marketing qualification. Its purpose is to make it clear that the advertised deal is contingent on the customer having a good credit rating.

WAC statements are frequently presented in connection with financial offers, such as hypothetical lease terms offered in a new automobile advertisement.

Key Takeaways

  • Advertisers utilize WAC statements as a form of disclaimer.
  • They are used to emphasize that the special deal featured in the ad is only accessible with credit approval.
  • WAC statements are intended to safeguard advertisers against incorrect or misleading advertising charges.

Understanding WAC Statements

WAC assertions are one of several sorts of qualifying statements seen in advertisements. These declarations, informally known as the ad’s “fine print” because to the tiny type in which they are normally placed, are meant to safeguard the advertiser against false or misleading advertising charges.

To that aim, qualifying statements often include further information about the terms of the specific product being advertised in the ad. The offer in the case of WAC statements often pertains to the product’s financeability, such as when a vehicle or other large-ticket item may be bought using credit supplied by the seller or an associated institution. These adverts often feature incentives like interest-free periods or low down payments.

The inclusion of a WAC statement is a risk-mitigation tactic for the marketer. Without this disclaimer, the advertiser might be accused of deceptive conduct. This strategy is marketing a product or service to a group of clients, when some or all of those customers will be unable to acquire that product or service at the advertised price or conditions. Bait-and-switch methods are illegal and constitute a breach of consumer protection laws. As a result, businesses take precautions to prevent this liability by revealing the conditions of their offers through WAC statements and other disclaimers.

  Noncredit Services

The WAC statements often emphasize that in order to qualify for the advertised conditions, the consumer must first get credit approval based on factors such as their credit rating, present and past income level, and job status. Consumer protection law, such as the Equal Credit Opportunity Act (ECOA), prohibits businesses from taking into account personal identifying criteria such as the customer’s race, gender, age, religion, or sexual orientation.

Example of a WAC Statement

Laura is in the market for a new vehicle. One day, she sees a TV commercial for a new automobile that seems to fulfill the specs she is searching for. Although the automobile is normally more costly than she can afford, the advertising adds that the manufacturer is presently providing an appealing financing plan with a modest down payment and exceptionally low interest rates for the first year.

However, upon closer study, Laura discovers that she will be unable to take advantage of this offer. The company’s WAC statement, written in fine language towards the bottom of the ad, emphasizes that these appealing financing arrangements are only available subject to a credit approval procedure that takes into account the applicant’s credit score, current income, and collateral. Laura thinks that her application will be denied since she presently has a low credit score and little collateral.

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