What Is a With Approved Credit (WAC) Statement?
Let me explain what a With Approved Credit statement, or WAC statement, really is—it's a qualifier you see in advertisements, and its purpose is to make clear that the offer being promoted depends on the buyer having a solid credit rating.
You'll typically find WAC statements tied to financing offers, like those hypothetical lease terms in a new car ad.
Key Takeaways
WAC statements function as disclaimers that advertisers use to specify conditions. They ensure you understand that the promotional offer in the ad is only available if you pass a credit approval process. Ultimately, these statements shield the advertiser from claims of false or misleading advertising.
Understanding WAC Statements
WAC statements are just one kind of qualifying statement you encounter in ads—often called the 'fine print' because they're usually in small font, and they're there to protect the advertiser from accusations of false or misleading claims.
These qualifiers add details about the conditions of the offer. For WAC specifically, it's about whether you can finance the product, like buying a car or other expensive item with credit from the seller or a related lender. Ads often highlight perks like interest-free periods or low down payments.
Including a WAC statement is a key way for advertisers to minimize risk. Without it, they could face charges of bait-and-switch, where they advertise something not everyone can actually get under those terms—that's fraudulent and breaks consumer protection laws. So, companies use WAC statements and similar disclaimers to disclose terms clearly.
The statements themselves spell out that to get the advertised terms, you need to qualify through credit approval, looking at your credit rating, income history, and employment. But remember, laws like the Equal Credit Opportunity Act (ECOA) stop companies from factoring in things like your ethnicity, gender, age, religion, or sexual orientation.
Example of a WAC Statement
Consider Laura, who's shopping for a new car. She sees a TV ad for a model that fits her needs, and while it's normally out of her price range, the ad promotes a financing deal with a small down payment and low interest for the first year.
But when she looks closer, she sees she can't qualify. The fine print at the bottom has the WAC statement, stating that these terms require credit approval based on credit score, income, and collateral. With her poor credit and limited collateral, Laura knows her application won't go through.
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