Just a few months ago, GMAC announced that it would be tightening its criteria for auto loans, refusing to lend to anyone with a credit score below 700.
But now, the company says it will consider extending a loan to someone whose score hovers close to 621.
However, while this change in policy may open up possibilities for those looking to purchase a vehicle, CNN Money points out that GMAC has not specified the interest rate offered for lower credit scores.
You can also expect a GMAC loan to last for less than 60 months, as the auto industry moves away from the trend toward extra-long loans.
Although this means you will have larger monthly payments, it also means that you end up paying less interest over the long term.
The news provider suggests that prospective buyers should check out all of their options before opting to borrow from GMAC – particularly for someone with poor credit, there could be a better offer available from a bank or credit union.
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