The phrase “with approved credit” is typically used as something of a qualifier or stipulation in an offer so that the offer is only valid for certain individuals. This is usually seen with leases on cars or homes where financing and the terms of the lease often depend heavily on the credit of the person applying for the lease. When a car dealership advertises an offer on a particular car, usually dealing with a down payment and monthly payments, the offer may be available only for those with good credit. In this type of scenario, the advertisement for the offer will usually indicate that it is only applicable for those with approved credit.
For someone to be eligible for an offer that only applies to those with approved credit, he or she must typically have a credit score at or above a certain level. There are many different ways in which a person’s credit score can be improved or reduced, and the resulting score often indicates a great deal about a person’s financial background. For example, bankruptcy or car repossession can have negative impacts on someone’s credit report, while maintaining a credit card that is paid off in a timely manner can boost a person’s credit rating. When someone applies for a lease on a car or home, he or she will typically have to provide information that is used to access his or her credit report.
Using the credit report or credit score of a person, the business offering the lease can offer the most beneficial terms to those with approved credit scores. Customers with lower credit scores, on the other hand, are likely to be offered leases with terms that are not as attractive. This often includes higher initial payments or longer payment times that accrue more interest for the business offering a lease or loan.
In order to better avoid any legal entanglements that could arise from this practice, such as viewing these offers as a “bait and switch,” many businesses indicate that such offers are only valid with approved credit. Of course, the credit score or rating that a customer must have to be approved for a lease or loan typically depends on the company providing the offer, so the terms of such an offer are generally up to the business and not the customer. Since a lease that is offered to those with approved credit typically depends on a payment plan, these offers do not often apply to someone looking to make a purchase outright.