GMAC, GM’s financing arm, has lowered its minimum credit score requirement to 621, meaning more car buyers will have access to loans to buy a GM vehicle. GMAC was approved to become a bank holding company on Dec. 24 and received $5 billion from the U.S. Treasury.
A couple months ago, GMAC said it would not finance customers with a credit score less than 700, leaving millions of potential buyers to find other means of financing for their next car purchase.
"The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers," said GMAC President Bill Muir. "We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S."
If your credit score is less than 621 though, you’re still out of luck. GMAC will not consider you for an auto loan at this time if you’re in that credit score range, according to a GMAC press release. GMAC’s expanded financing policy will apply to both new and certified used vehicles.