The holidays are over and now is the worst time to need car repairs. Between holiday shopping and hosting the holiday meal, your bank account is nearly down to zero. There are ways you can finance your car repairs to get your vehicle back on the road. Mechanic One Auto Repair & European Auto Repair is going to list some suggestions from the financial website Credit Karma below. These are not your only opportunities. We offer financing for automotive repairs through Snap! Finance at our shop. In fact, you can apply online to see how much you get approved for before you schedule your appointment for your automotive repairs.
Bank Loan
This being said, Credit Karma recommends getting a personal loan from your bank or credit union if you need to finance your car, truck, or utility vehicle’s repairs. The reason why they recommend using your bank is that the interest rates on personal loans tend to be much lower than any other financing option. You can also get a longer payback period with a personal loan that will help you incorporate lower monthly payments into your budget. The caveat to a bank loan is that you must have excellent credit and collateral to back the financing. If you don’t have either of these things, the bank will likely reject your loan application.
Credit Card
Another option is to use a credit card, but Credit Karma cautions that this can be more expensive than you realize. The reason why is that your credit card may come with an interest rate that is 15 percent or higher. This makes it nearly impossible to pay off your auto repairs, as excessive interest accrues each month. If you have good credit, you can look into credit card offers that give you zero interest for a limited time. This allows you to pay off your auto repairs without any interest accrual. As with a bank loan, however, you must have excellent credit to be approved for this type of credit card.
Payday Loan
For those with bad credit, there is an alternative financing option that can be used, but Credit Karma recommends you use it with extreme caution. This option is a payday loan. A payday loan borrows money against your next paycheck. In other words, you can have the cash now, but you must pay it back out of your next paycheck. If you are already struggling to pay for your auto repairs, this option may not be viable, especially since it comes with high interest rates.
As we mentioned above, Mechanic One Auto Repair & European Auto Repair in Canton, MI, works with Snap! Finance to help our customers pay for their automotive repairs. This option works for all credit histories, so apply online today.
