What are the eligibility guidelines for AmeriCredit car loans?


Quick Answer

Prior to its acquisition by General Motors in 2010, AmeriCredit offered subprime auto loans to applicants with credit scores of at least 500 and incomes of at least $2,000 per month, reports Insider Car Buying Tips. Eligibility also required that any prior bankruptcies filed by applicants must have been discharged.

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Full Answer

Following its emergence from bankruptcy, General Motors purchased AmeriCredit, a major subprime loan company, which it renamed as "General Motors Financial." With the acquisition of the company, GM aimed to offer in-house credit to customers with imperfect credit histories, according to CNN Money. GM expected to revive fledgling auto sales by providing a financing option that targeted subprime borrowers with low incomes or poor credit histories who could not qualify for conventional prime rate loans. The acquisition proved profitable for GM and helped put the company back on a strong financial footing.

As of 2015, the subprime auto lending industry has come under federal scrutiny in recent years. General Motors Financial company faced an investigation into its subprime dealings in 2014. Prosecutors subpoenaed the company's records dating back to 2007 to determine if it violated any laws governing credit practices, reports Auto News. The investigation represented part of a nationwide inquiry into subprime lending practices among U.S. auto manufacturers.

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