On Approved Credit (O.A.C.)
“On Approved Credit” (O.A.C.) is a disclaimer used in financing offers to indicate that the terms (such as an advertised interest rate or loan approval) are conditional on the customer’s creditworthiness. Canadian dealerships include O.A.C. in advertisements and finance agreements to clarify that not everyone will qualify for the best rates or promotions. This term reminds staff and customers that the deal must be underwritten by a lender who will approve it based on the customer’s credit history and financial situation. It helps manage expectations and ensures compliance with advertising standards by making clear that special financing terms depend on credit approval.