Bad Credit Rating Car Financing Fraud
by FABIOLA CASTILLO
Some dealerships will try to fool you by telling you that your credit score is bad when you know that it is good. They are lying through their teeth about your credit rating and hoping that you do not know what it really is. You could have good or bad credit to be fooled by this one. It does not matter how good your credit rating is if you are not aware of what it is. Their scam will not work on you if you do know how good your credit is. If you are not cognizant of your credit rating when you walk into a car dealership, they may be able to swindle you into thinking that you are not credit worthy, and you could be paying more money than you should.
How do car dealerships try to swindle you?
When it is time to fill out loan financing paperwork at the car dealership, the financiers will attempt to tell you that your credit score is very low. For that reason, you will have to pay a very high interest rate in order to qualify for the loan. You probably were expecting to pay 0% interest but the car dealership is hoping you leave paying 9% because you do not know your credit score. If you do know your credit and you question the dealer what it is, the dealer will most likely have excuses ready to throw at you. Do not fall prey to this scam because a credit score is what a credit score is.
Your credit score is always the same no matter what you are buying. Someone who is well aware of his credit rating would ask questions right away. If the financiers at the dealership give you some B.S. excuse that credit scores do NOT always mean the same thing, be suspicious of them. They will try to pull a fast one on you. Just watch the expressions on their faces when you tell them that you know what your credit score really is and that they were lying to your face the entire time.
Protect yourself by knowing your credit score
Everyone should have a good idea what their credit is before buying a new or used car from a car dealer. If the car salesman knows your credit score, and you do not, he will most likely try to pull this scam on you. It is better for you to get your own financing before you show up at the car dealership. You will not only get a better interest rate, but the dealership will not try to fool you into paying more on the cost of borrowing money. If a dealership tries to pull this scam on you, just let them know what your credit score is, or just leave. There are other legitimate car dealers out there whose salesmen will not try to take advantage of you. Do not give them a second chance. If you do, they will not hesitate to try to pull another scam on you.
What should you do if you are a victim of this scam
If you believe that you have been a victim of an auto financing scam, you should report the car dealership to your state's attorney general office right away. You should also contact the Better Business Bureau to report their dishonesty. You can also try to get better financing with a lower interest rate as soon as possible. Going from 17% to 8% could mean saving yourself hundreds of dollar per month, and thousands of dollars over the entire term of the loan.
There are lots of consumer fraud schemes out there such as the bad credit car financing scheme. It is up to you, the consumer, to educate yourself to recognize what is and is not legitimate. By doing so, you can minimize becoming a victim to this form of deception.
Fabiola Castillo is an online marketer for the website NinjaCOPS.com. Her virtual store specializes in personal defense products where you can buy pepper spray, kubaton keychains, wholesale stun guns, nunchaku technique videos, wireless hidden cameras, expandable steel batons, and many other home security products.
