The first option you should look into if you cannot afford your car repairs is to find an auto service shop that will work with you. We here at Automobile Diagnostics are that shop. We offer financing options for our customers whether you are driving your own vehicle or you are a fleet manager. The financial website Credit Karma also discusses financing options for those who can’t afford their car repairs, and we will summarize this discussion below.
Traditional Lending Opportunities
Traditional lending opportunities include a bank loan or line of credit. Using a credit card is also considered a traditional financing option. The important thing when considering any of these options is how easy it will be for you to pay back the loan. If you are already struggling financially, opening yourself up to terms that you cannot abide by will ruin your credit and place undue stress on your finances.
A bank or credit union loan is the best option if you have good credit and the collateral to back it up. These loans offer the lowest interest rates of all of the options listed in this blog post and they also give you plenty of time to pay the loan back. The downside of these loans is it may take a few weeks to get approved and get your hands on the money you need to repair your automobile.
Credit cards or lines of credit can also be used to pay your auto repairs, but these often come with high interest rates that prevent you from paying off the repairs in a reasonable amount of time. If you have excellent credit, Credit Karma recommends that you try to find a credit card or line of credit with a limited zero interest rate duration so you can pay off your repairs without interest.
Non-Traditional Lending Options
Not everyone has stellar credit, however, and there are options for those with low credit scores or no credit score. A payday loan is one way to pay for your auto repairs, but approach the payday loan with caution. Credit Karma warns that this option comes with extremely high interest rates, sometimes as much as 200 percent. Plus, you will be required to pay off the loan in full at your next payday.
Another option is a title loan, but you can only use this option if you own your automobile. In order to receive the money that you need to repair your car, truck, or utility vehicle, you need to turn your vehicle title over to the lender and will not receive it back until such time as you pay off the loan plus interest. The payback terms are also short when it comes to this type of loan.
Automobile Diagnostics in Columbus, IN, offers two types of financing for our customers, as well. You can apply for Snap! financing or NAPA Easy Pay directly from our website.