Good news as a lot of otherwise qualified people have been getting turned down for car loans:


More...:

http://money.cnn.com/2009/04/01/news...ion=2009040112

 

The issue isn't that people were unqualified... it's that they stopped lending to regular people.

I can get loans because I've been a memeber of a certain military credit union since 1984. But, while I have good credit, I likely wouldn't have been able to get loans as easily as I should (if at all) through GMAC.

Also, keep in mind, GMAC is owned by Cerberus.

Cerberus also owns Chrysler Financial.

Cerberus owned GMAC first started shutting down credit NOT when the economy started shutting down....

... but at about the same time Cerberus was trying to force General Motors to take Chrysler off their hands!

Chrysler Financial never had as many restrictions as GMAC had, even when credit dried up.

Cerberus via GMAC now has a direct stake in General Motors pulling through (can't exactly loan money for buyers and dealers of a defunct car company, can you?).

GMAC loosing up credit isn't so much lowering standards for unqualified buyers...

... it's accepting more qualified buyers by ending their ridiculous raised standards.

 

I keep getting offers in the mail for cars and then see the credit standards....760+ beacon score. There are a lot of people who have had their credit limits slashed which has caused scores to go into the tank even with a good credit history. I think the loosening standards are a good thing and hopefully it will get more people back into the market so that the companies and economy can heal. Somewhere in the middle of what it was and what it is would be good.