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Can I trade in my car and take out a new car loan if my credit has dropped to 520?
"When I bought my first car, my credit was in the 700s—after medical and student loan debt, my credit is 520. But I want to get a new car now.
I earn $5,000 a month and can easily make payments. Can I trade in my current car and get a new loan despite my credit? "
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The answer is probably not. The first question a lender is going to ask you is why you haven’t paid any of your other debt if you have money to do so. Why should they expect special treatment?
Keep paying on your car loan while simultaneously paying off your other debt. This way, you’ll build back your credit enough to get that car loan and the car you want.”
View full answer
- Gregory R.
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