GMAC to open up lending to lower credit scores immediately

With the new bailout money being funneled into GMAC under the new provisions of the US Treasury, the company has come forward to say that they will lower the credit score limitations that had previously been put in place to allow lending to those only over 700, which is well above the national average of credit.

Now that an additional 6 billion is being doled out to allow for more lending, GMAC has said that they will be lowering the score minimum to around 620, which should open the floodgates for more and more buyers in the auto world.

Is this the best step? Well, no, because the credit crisis and mortgage situation is much in due part to those individuals being 1) predatory lended to and 2) living well beyond their means. While auto buying is significantly less in terms of "debt", it still presents a problem of individuals biting more than they can chew, as evidenced by the leasing situation that can be paralleled to the mortgage crisis situation. As long as there are tougher ways to follow up on deadbeats and accountability up front, maybe it will make a difference...maybe. I guess easier said than done.

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GMAC to open up lending to lower credit scores immediately

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