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With Approved Credit (WAC)


“With Approved Credit” (WAC) is a common term used in the finance industry. It indicates that the quoted terms such as interest rates or loan amounts are available to the customers whose credit ratings meet the lender’s standards. If a customer’s credit score does not meet these standards, they may be offered different terms or denied credit altogether.


The phonetic pronunciation of the phrase “With Approved Credit (WAC)” is as follows: With = wɪðApproved = ə-‘pro͞ovdCredit = ‘kre-ditWAC = wæk

Key Takeaways


  1. Qualification: WAC means ‘With Approved Credit,’ which indicates that the terms of an offer or promotion are subject to the credit approval of the applicant. Not everyone qualifies for WAC as it depends on their individual credit history and credit score. In simple terms, you must have a certain level of creditworthiness to qualify for financing under WAC.
  2. Interest Rates: WAC also impacts the interest rates that you qualify for. If your credit history is strong and your credit score is high, you will typically qualify for lower interest rates. Conversely, if your credit score is lower, you may face higher interest rates under the terms of WAC.
  3. Honest Communication: When you see ‘WAC’ in an advertisement, it’s a clear sign that the offer is not universally available to all customers. Businesses use it as a tool to communicate honestly and clearly about this fact. Therefore, it’s important to pay attention to this term and understand what it means for you personally.



The business/finance term “With Approved Credit” (WAC) is important because it denotes the terms of a transaction or financial arrangement that are dependent on the buyer’s creditworthiness. Often used in environments where loans or financing options are provided, WAC specifies that the offer being made, whether it’s lower interest rates, specific repayment timelines, or other beneficial financial conditions, are only applicable if the buyer has a sufficient credit score or meets the lender’s credit requirements. Not every individual may qualify for these offers as their credit histories can drastically differ. Hence, WAC plays a key role in lending decisions ensuring that there is transparency about who can access the best possible terms.


With Approved Credit (WAC) is a term mainly utilized by lenders and automobile dealers for financial transactions and promotions. The main purpose of implementing the WAC condition is to present the most favourable terms that a buyer may receive, given that their credit rating meets the lending standards. It serves to secure financial transactions and standardize the loan offering process, thereby safeguarding the lender’s interests while offering the most advantageous conditions to the financially sound customers.Often used in various promotional advertisements and deals, WAC aims to attract customers with the promise of low interest rates or favourable financing terms. However, these attractive terms are contingent upon a favorable credit assessment. Potential borrowers with excellent credit scores and histories who pose minimal risk to the lender are granted these benefits. Thus, the “With Approved Credit” condition instills a level of security and confidence in the transactions, minimizing risk for the lender while providing potential benefits for both parties involved.


1. Auto Loans: In many car dealerships, the special financing rates or discounts advertised are often based on “With Approved Credit” (WAC) terms. This means that to qualify for those rates or discounts, a consumer must possess a good to excellent credit score, as determined by their financial institution or the dealership’s financing partner. 2. Home Mortgages: When buying a home, a real estate agency might advertise a certain low-interest mortgage rate “with approved credit”. This means that the interest rate is based on the borrower having an excellent credit history. If the prospective homeowner’s credit is not at the level required, they may not qualify for that advertised rate.3. Retail Financing: Many retail stores offer special financing options for large purchases such as furniture or electronics, subject to approval of your credit. These stores, such as Best Buy or Rooms To Go, may advertise special financing deals like “0% interest for 24 months” but this is typically based on the condition WAC. This simply means that the deal is available only to customers who apply for the store’s credit card and are approved based on their credit score and history.

Frequently Asked Questions(FAQ)

What does With Approved Credit (WAC) mean in finance and business terms?

With Approved Credit or WAC, in finance and business, refers to the requirement that a customer must have a satisfactory credit score or credit history to be eligible for a particular financing offer, e.g., a loan, a finance package, or a special rate.

How is WAC related to credit ratings?

WAC is closely related to credit ratings as these ratings help financial institutions determine if a customer’s credit is approved. Customers with higher credit ratings are more likely to be approved.

What factors can affect WAC?

Credit history, current income, existing debt, and other financial circumstances can influence whether or not a customer’s credit is approved (WAC).

In what circumstances is the term WAC commonly used?

WAC is used in a variety of financial and business transactions, including loans, credit cards, mortgages, rent-to-own agreements, auto financing, and more.

Can a customer negotiate a deal stated as WAC?

The deal itself may not be negotiable if it’s stated as WAC since it means that the offer only applies to those with approved credit.

How can a customer improve their chance of qualifying for WAC?

Customers can enhance their chances of qualifying for WAC by maintaining a good credit score, paying bills on time, reducing outstanding debts, and ensuring a stable income source.

Can I be denied a deal, even if it’s labeled as WAC?

Yes, a customer can be denied a deal labeled as WAC if their credit score or credit history is not in good standing or doesn’t meet the lender’s guidelines.

Does WAC apply to all transaction types?

Generally, WAC would apply to transactions that involve credit or financing. However, the specifics may vary based on company policies and the nature of the transaction.

Are interest rates affected by WAC?

Yes, interest rates offered can be affected by WAC. Those with better credit ratings typically receive lower interest rates.

: Is the WAC status permanent or can it change?

WAC status can change over time based on changes in a person’s credit history or financial situation. Regular financial management and credit monitoring can help maintain or improve WAC status. For any other queries, please feel free to ask.

Related Finance Terms

  • Credit Score: This is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history.
  • Credit Approval: It refers to the approval given by the financial institutions or lenders to grant a certain amount of credit to a borrower.
  • Finance Charge: It is any cost or charge directly associated with borrowing money, including interest fees and loan origination fees.
  • Annual Percentage Rate (APR): It is a yearly representation of the interest that you’re required to pay on borrowed money, including loans and credit card balances.
  • Terms of Loan: These are the details of a loan, including the loan amount, interest rate, repayment time, and other conditions.

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