Poor Credit Welcome Again at GMAC (GM)

Following a $6 billion investment from the U.S. Treasury and approval to become a bank holding , GMAC Financial Services said it will immediately resume auto financing for a broader spectrum of U.S. customers.

GMAC will modify its credit criteria to include retail financing for customers with a credit bureau score of 621 or above, a significant expansion of credit compared to the 700 minimum score put in place two months ago.

GMAC President Bill Muir said, "The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers. We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S."

Muir also said, "The majority of GMAC's auto financing has been in the prime arena. Therefore, opening access to credit for those with CB scores of 621 or better will allow us to return to more normal levels of financing volume, and should help in efforts to stabilize the U.S. auto industry."

Stocks: General Motors (NYSE: GM)

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