GMAC lowers credit score requirement

[Verio]

Originally Posted by irpq11

I have been with Free Credit Report .COM since the first year they came out and have monitored my score like a hawk and have found some interesting things with regards to the effects of different things. Things that people wouldn't normaly think about. But you're right, it can take a while when you get in a pinch. ONE late payment can lose you 30 points for years.

When I went to college 7 years ago, and had 3 roommates bail out on me for my apartment rent... I've had 4 charge-offs stuck on my report since.

Since then, I have had ZERO issues on my credit report, but I cannot for the life of me get in to the 700 range because of those 4 items. To top it off, they weren't even fixed until 2003, which leaves me with another 1-2 years before they aren't counting against me.

Credit Scores mean diddly. Have to look @ Income/Debt Ratio.

[toehead93]

You're right. You can have the best credit in the world but if you have too much debt vs income you won't get a loan.

[PQ]

Originally Posted by Verio

When I went to college 7 years ago, and had 3 roommates bail out on me for my apartment rent... I've had 4 charge-offs stuck on my report since.

Since then, I have had ZERO issues on my credit report, but I cannot for the life of me get in to the 700 range because of those 4 items. To top it off, they weren't even fixed until 2003, which leaves me with another 1-2 years before they aren't counting against me.

Credit Scores mean diddly. Have to look @ Income/Debt Ratio.

Originally Posted by toehead93

You're right. You can have the best credit in the world but if you have too much debt vs income you won't get a loan.

Dispute them. Sometimes creditors don't fool with some of the mail and if they don't confirm within 30 days it comes off of your credit.

As far as debt to income ratio, you're excactly right. I normaly pay all of our monthly bills with credit cards but starting last month I just paid everything straght out of the bank because I want to give it time to reflect zero debt showing except the house and what's left on Bonnies car.

If GMAC is going as low as 620 for credit then maybe the rates will be better for 750 and above?

[DDustiNN]

Originally Posted by irpq11

If GMAC is going as low as 620 for credit then maybe the rates will be better for 750 and above?

I'm also wondering what the rates look like...

[ShnOmac]

Originally Posted by Iwantone2

Great info, thanks for the link!!!

If they only looked at credit score, it would be good, but they look at other factors from what I'm told. Debt to income ratio, credit history, installment loans(previous auto, home, rec vehicle loans), how much available revolving credit there is (credit cards and such). My credit score is 711, but that's just not going to cut the mustard!!!

All those factors you just named..... IS WHAT MAKES UP YOUR CREDIT SCORE
Majority of all credit lending agencies just ues credit score's because it is a "picture" of your overall credit health....
Yes my wife works in this field for a living.....

[ShnOmac]

As for GMAC lowering their standards.... that just says they are willing to take a chance to try and make some money. If you apply with a 620 score chances are your APR is going to be through the roof.

[tribone]

Originally Posted by shnomac77

All those factors you just named..... IS WHAT MAKES UP YOUR CREDIT SCORE
Majority of all credit lending agency's just ues credit score's because it is a "picture" of your overall credit health....
Yes my wife does it for a living.....

[marcgo2]

This is good news for Repo men.

[Grimelock2009]

I wonder what APR would you get with a 620?

[hellraiser]

That is insane, when these loans start to default, you the taxpayer will pick up the bill. Remember your govt. will have majority shares and the debt keeps rising..

[Iwantone2]

Originally Posted by shnomac77

All those factors you just named..... IS WHAT MAKES UP YOUR CREDIT SCORE
Majority of all credit lending agencies just ues credit score's because it is a "picture" of your overall credit health....
Yes my wife works in this field for a living.....

So, with a score of 711 and cc debt of $5K (yes people, its going down ), I might get approved for a $30K loan? No previous auto loans either.

I'm glad this forum has people that can help out with any and all questions. Thanks guys!!!

[MerlinZero]

This is great news... I've been rebuilding my credit SINCE college... stupid student loans killed my credit rating.

I've just now started to climb back up.

[Iwantone2]

Good for you Merlin!!! Being in college takes a toll on your wallet without a doubt (that's why I owe $ on my cc's). Do everything you can to pay off those loans and little by little your score will improve.

I went up 37 points in 7 months, so it will take some time.

[Verio]

Originally Posted by Iwantone2

Good for you Merlin!!! Being in college takes a toll on your wallet without a doubt (that's why I owe $ on my cc's). Do everything you can to pay off those loans and little by little your score will improve.

I went up 37 points in 7 months, so it will take some time.

I ended up in the high 400's after college due to my roommates screwing me over. Over the last few years I've gone up over 200 points... it literally takes years.