Credit Score Scam: Lying about Credit Scores
When buying a vehicle a customer should go through a credit score check at the dealership. The majority of consumers doesn`t know their credit score and they trust the dealer to let them know what they qualify for. Deceptive car dealers take the occasion to extract maximum profit from the deal by giving the customer lower credit scores that they actual have. The credit score scam is aimed at increasing monthly payment.
Credit score scam is one of the most abused dealer scams and it has several variations. Let`s unveil the most frequently used one. Auto dealers are continually showing advertisements on TV and radio. These ads aimed at drawing a large number of potential customers to the dealership entice with 0% interest rate or special discounted prices. The customer who has seen this ad comes to the dealership with the hope to get this tempting offer. He finds the vehicle he likes, spends much time negotiating the price, but when he is going to complete paperwork for loan finance department employee with worried face expression tells him that his credit score is too low. In order to qualify for the loan the customer has to pay a high rate interest.
How to avoid credit score scam?
The best way to cope with dealer`s avidity is to bring a copy of your credit score to the dealership. In this case there will be no confusion as to what your credit score looks like. If a salesman tries credit score scam on you just let him know that you`re aware of your credit score perfectly well. But you`d better leave the dealership as you can`t say for sure that they`ll refrain from trying to take advantage of you somewhere else. Don`t give them a second chance to cheat you!
What should victims of dealer scam do?
If you think that you`ve fallen victim to credit score scam and you have to pay too high interest rate you can ask a credit union, bank or loan company for refinancing your vehicle at lower interest rate. Going for instance from 19% to 10% means savings thousands over the whole term of the loan. You can also report dishonest auto dealership to Attorney General Office in your state and Better Business Bureau.