Do You Know How To Avoid An Auto Credit Rating Scam?

Here’s another auto scam which, this time, revolves around something other than the vehicle itself.

The auto credit rating scam occurs when the finance department of the car dealership you are looking to buy from tells you that your credit rating is much lower than it actually is.

Whilst most dealers are undoubtedly honest, there are always going to be a few who are willing to take advantage of their customers in order to make a quick buck.

Such dealerships will try to con their customers into believing that their credit rating is poor, even when that is far from the truth.

The dealer will rely on his customer not knowing what their credit rating is in order to charge them a much higher than necessary rate of interest on their finance deal.

THE CON

The dodgy auto dealer relies upon potential purchasers not knowing their credit rating in order to con them into believing that they pose a credit risk and, therefore, that they need to pay a higher rate of interest in order to acquire financing.

They will get their victim to fill out all the necessary loan financing paperwork as usual but will then come back to explain that their credit score is dangerously low.

Of course it goes without saying that they can still offer finance but at a much steeper cost.

If their victim does actually know what their credit rating is then the dealer will almost certainly be experienced enough at this scam in order to have a whole raft of excuses at the ready to explain why there is now suddenly an issue.

Remember, though, that a credit rating is a constant – it doesn’t matter whether you are financing a house or a car or a vacation – if your credit is good for one then it is good for any other.

If the customer already knows their credit rating then such a ruse would fail.

AVOIDING THIS SCAM

I would say that it is essential for everyone to know their credit rating in advance of making any major purchase.

Not knowing it is negligence and gives any dodgy salesman the opportunity to rip them off.

If a car salesman knows more about your credit score than you do then they will almost certainly use that information against you.

It is probably a good idea to secure financing before you even go looking for a new car (I always do).

That way you will almost certainly get yourself a far better deal and also save on a whole lot of hassle.

You may also be able to secure an even better deal by paying with cash.

If you find yourself in the situation described above then don’t fall for this type of auto fraud – let the salesman know in no uncertain terms that you are aware of what your credit rating is, or maybe better still, walk away and find a more honest dealership.

DISHONEST DEALERS

If you believe that you may have already become a victim of an auto credit rating scam then you have a few options available to you –

  • You can report the car dealership to your state’s Attorney General’s office
  • You can file a report with the Better Business Bureau
  • You may be able to acquire a better financing deal elsewhere in order to achieve a better rate of interest
About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.

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