What is OAC Financing?
When shopping for a vehicle, you’ll notice in the fine print of their advertisements specific monthly payments and interest rates known as OAC financing. OAC financing stands for On- Approved Credit, meaning that the advertised interest rates and monthly payments are only available to those who have a credit history in good standing with little risk of defaulting on the loan. Those who meet the specific requirements of an OAC financing offer can take advantage of advertised rates and payments.
OAC Financing Requirements
To be eligible for an attractive interest rate and monthly payment on the price tags, dealerships require the borrower to meet very strict criteria.
- Must have a credit score of at least 700.
- Need to have a favourable DTI of less than 43%.
- Credit history in good standing with no defaulted loans
- Proof of income with pay stubs and bank statements.
What Do The OAC Financing Requirements Mean?
A credit score is an important factor in applying for OAC financing. To maximize chances to be qualified for an offer of interest rates and monthly repayment offered on OAC financing, applicants with a higher credit score have the best opportunity. An applicant’s credit history must also show a long period of timely payments in order to show that it is maintained in good standing. As a rule, making your minimum or above monthly payments on time, every month will improve your credit score over time. Dealerships often require a strong credit history for an OAC as it proves the borrower is reliable and can easily make payments on time with the reduced risk of defaulting on the loan. Obtaining approval for OAC financing depends on the borrower having a low debt-to-income ratio. In addition, proof of an adequate income means that the borrower may be more likely to obtain this loan, as the higher earning potential will allow them to afford repayment comfortably without overextending themselves financially every month.
Check Your Eligibility For Great Rates Today!
If you meet OAC Financing requirements, you can take advantage of the advertised interest rates. You don’t necessarily have to get OAC financing to receive low-interest rates and affordable monthly car loan payments. While these rates may appear more competitive than those available to customers with less-than-perfect credit, they may not be the best option for everyone. Get the vehicle you need now! We offer competitive interest rates and affordable monthly payments while working with your credit score.