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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?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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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- Gregory R.
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