That old rickety rattle trap you’ve been driving needs to be replaced, so you’ve been exploring your options. You want the best deal possible, so you’re doing your homework. “OAC” keeps cropping up on the pricing information, but what does it mean?
For the most part, terminology from car manufacturers, dealers, and lenders is mumbo jumbo for the average car buyer, and acronyms tend to use every letter in the alphabet. Some of these terms are important though, and OAC is one of them.
The acronym ‘OAC’ is usually found below the estimated monthly payment or interest rate on the vehicle description page. You’ll see it in the fine print at the bottom.
OAC stands for On Approved Credit. It means that approval for the attractive monthly payment or interest rate you see on the price tag is subject to your credit rating. For example, 0% APR financing is usually only available on approved credit. The better your credit score, the higher your chances are of getting approved for this special offer.
Unfortunately, 1 in 3 Canadians have non-prime or sub-prime credit ratings. Even those with near-prime or prime credit ratings may not get access to these attractive OAC rates.
But that doesn’t mean you should give up on finding a great deal...
Don't know your credit score? Find out how to check it for FREE in minutes.
Qualifying for OAC financing when you have less-than-perfect credit is possible. You may get approved for some special offers if you can prove your ability to keep up with the monthly payment. Sometimes a co-signer or down payment will be required to get that stamp of approval.
But whether you qualify for OAC financing today or not, you should always be mindful of building credit so that you qualify for better interest rates tomorrow.
The lender uses your credit score to gauge whether or not you can be trusted to borrow money. Lenders like to see that you make enough money to repay on time and that you are in good standing with all your current credit obligations.
Here are some tips on how you can boost your credit score in just a few months:
If you want to find a great deal today and don’t have time to build your credit, there are other ways to get the vehicle you need immediately and at a price you’re happy with.
Since 2010, Canada Drives has been connecting customers facing all kinds of credit situations with the best possible deals in their area based on details such as their vehicle preferences, budget, and location.
Apply online today (it only takes 3 minutes!) to see what great deals you're eligible for.
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Or feel free to call us at 1-888-865-6402