What is a With Approved Credit (WAC) Statement?

Advertisers utilize the qualification “with approved credit statement,” or WAC statement for short. It is meant to clarify that the customer must have a sufficient credit rating to qualify for the promotion’s offer.

Usually, WAC assertions are attached to finance proposals, such as the fictitious lease conditions shown in a new automobile advertisement.

Understanding WAC Statements

The WAC statement is one of the various varieties of qualifying statements often used in advertisements. Because of the tiny type in which they are usually printed, these assertions are known as the advertisement’s “fine print.” They are meant to shield the advertiser against deceptive or false advertising claims.

In light of this, qualifying remarks often give further information on the terms of the specific deal that is being advertised in the advertisement. Regarding WAC statements, the offer usually concerns how financeable the product is—whether a vehicle or other expensive item can be bought with credit from the vendor or a partner institution. These commercials often offer advantages like low down payments or interest-free terms.

The marketer may minimize import risk by including a WAC statement. Without this disclaimer, the advertiser may be charged with bait-and-switch tactics. This strategy entails presenting a product or service to a group of consumers, some or all of whom cannot buy it at the stated price or on the specified terms. Bait-and-switch strategies are against consumer protection regulations and are seen as dishonest. As a result, businesses take precautions to limit this responsibility by revealing the conditions of their offers with WAC statements and other disclaimers.

To be eligible for the advertised terms, the WAC statements usually specify that the client must be approved for credit per specific criteria, including job status, credit rating, and past and present income. However, businesses are prohibited from taking into account personal identifying criteria, including a customer’s race, gender, age, religion, or sexual orientation, by consumer protection laws like the Equal Credit Opportunity Act (ECOA).

A WAC Statement Example

Laura is looking to buy a new vehicle. One day, she comes across a TV commercial for a new automobile that fits her requirements. The commercial claims that the manufacturer is presently providing an enticing financing plan with a small down payment and very cheap interest rates for the first 12 months, even though the automobile would generally be more costly than she can afford.

But after more examination, Laura finds she can’t take advantage of this offer. The company’s WAC statement, tucked away toward the bottom of the advertisement, makes it clear that these alluring financing conditions are only accessible after a credit approval procedure that takes the applicant’s credit score, present income, and collateral into account. Laura believes her application won’t be accepted because of her low credit score and little collateral.

Conclusion

• Advertisers utilize a certain kind of disclaimer called a WAC statement.
• They are meant to clarify that the advertisement’s promotional offer is only accessible after a credit approval procedure.
• WAC statements aim to shield the marketer against deceptive or fraudulent advertising claims.