In a rare instance of seeing an immediate impact on consumers from federal bailouts, GM’s financing arm, GMAC, will lower its credit requirements from a credit score of 700 to one of 621 to secure car loans. Last week, GMAC restructured to become a bank, then secured $6 billion in aid from the government just yesterday.
This should help GM dealers who had been looking to secure alternative ways of providing credit to buyers, including an agreement with Midwestern credit unions. The new requirements will go into effect immediately.
So, if you’ve been salivating over GM’s Red Tag Sale prices but have sub-700 credit, now’s the time to take a test drive.