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? "

“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.”
Eric Schad
Answered on May 26, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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