Credit Score Related Car Scam
Today we are going to tell you about the two of the most dangerous credit score related car scams. As you already know, only by educating yourselves you will be able to avoid different kinds of auto dealer fraud, scams and tricks.
The first car scam we are going to tell you about is the so called “Straw Purchase” car scam. This auto dealer trick can be considered to be one of the financial and credit score related car scams. The scenario is the following; the dealer tells you that your credit score is not enough for you to qualify for the vehicle purchase. Accordingly, you get into panic. The only solution the dealer can offer is that you bring a co-signer with you to be able to get the car. The dealer knows it for sure that with your credit score you will not be able to get the confirmation for the purchase. Later on, when you find a co-signer and send him/her to the dealership, the dealer dishonestly puts the name of the co-signer instead of yours (primary borrower) and accordingly you become the second borrower having to pay huge interest rates for that.
How to avoid this car scam?
- First of all, do not try to buy a new car if you know your credit score is low, otherwise you will be trapped into such credit score related car scams.
- Secondly, if however, you decided to find a co-signer for your contract, then take him/her with you to the dealership. Never appear there separately.
- Note that both of you sign the same contract.
Another scam among credit score related car scams is lying the customer about their credit score. Car buyers with low credit scores have to face high interest rates or they are sometimes even forced to buy used cars instead of new ones.
Sometimes, even people with high credit scores are trapped into this car scam. You may have a credit score of about 720 (which is excellent), and at the same time you may be forced to pay 10% interest rate.
The only way to avoid this car scam and credit score related car scams in general, is to find out your credit score yourself. You needn’t trust the dealers so much as to give them the opportunity to learn about your credit score first.