Should I apply with a different lender if I was already denied a loan for $20,000?

"I want to buy a car for $20,000. I don't have money for a down payment, but if I had to, I could probably get a cash advance from my credit card to put down $2,000.

My credit score is 658, but many of the derogatory marks are from my parents opening up credit cards in my name and using them without my consent.

I was already denied at one lender. Should I apply with a different one?"

Answer
“So, one thing that stands out is that you want to take a cash advance from your credit card (at 16% to 24% interest, most likely) to make a down payment.
This is a red flag that you shouldn’t be taking out any loan at all. As a general rule, you should always be able to put 20% down on a car and your monthly payments should be no more than 10% of your gross monthly income.
Your credit score isn’t helping either, though you should definitely dispute the charges that your parents made.
In all honesty, you should save up some cash and buy a cheap used car with it. You should’t needlessly go $20,000 into debt.”
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Eric Schad
Answered on Jun 02, 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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