This week, auto finance and mortgage firm GMAC said that it will only give purchase contracts to consumers who have a credit score of at least 700.
That move means that unless you have been consistently paying your bills on time, keeping your debt levels in check and following all of the other recommended steps for keeping your record clean, you may struggle to get a loan from GMAC.
An individual who has a credit score between 700 and 750 is generally considered to be a low credit risk and will have access to favorable loan rates, while those scoring above 750 will qualify for even better deals.
The current credit crunch has meant that some lenders, such as GMAC, are refusing to even consider giving a loan to someone who is not low-risk.
In a statement, the company said its actions are a direct result of uncertainty in the global markets and that its policy will “remain in place until the credit markets stabilize and accessibility improves.”
In the meantime, you may want to think about taking steps to boost your credit score – or develop a close relationship with your bicycle.
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