Credit Score Scam. How to Avoid It?
The process of credit approval starts with the completion of the car loan application which is then taken to the finance manager for approval. Generally, some of the most reputable car dealers have national and local lenders and even internal financing capabilities and may get convenient car loan rates for their buyers.
However, in some cases buyers may fall victim to a very common car buying scam the so called credit score scam in which the fraudulent dealer may use the financial transactions to maximize on his/her profits.
This auto scam is usually designed like this. Your credit application is returned to you with the citation that your credit is not good and therefore you may not obtain the financing through your preferred source.
However the salesman tells you that he/she is going to consult your finance manager. After this, you are told that the dealer has managed to push the finance manager via another bank for you to be approved. This makes you pay a higher interest on a car loan than it should be. Thus credit score scam involves forcing you to pay more than you intended to. You increase the interest rates on your car loan, which enables the car dealer to make more money on you. On the other hand a reputable dealer who has good lending relationships will get a better car loan rate than the buyer can get without any assistance.
So before the car buying process, you need a copy of the credit report. When you have this information, no car dealer tricks may work on you. When seeking for a car loan, it is better to ensure the lender institution is genuine. This also implies to online customers because there are car scam sites that make money based on an individual’s financial situation.
In case you are a victim of credit score scam and you need help and assistance, don’t delay turn to an experienced car lawyer.