Your mechanic just called with bad news. Your automobile repairs are going to be expensive. You can’t get rid of your car. Not only do you need it; you also owe too much money on it. Does it fall under the Lemon Law? That’s best determined by a lawyer. Can you finance your auto repairs so you can get them done? Yes. It’s just wise to do so carefully.
Do a Budget Check
First, review your household budget to see how much money you have leftover each month to see if you can afford another monthly payment without strapping yourself. If there isn’t much wiggle-room, conduct an even thorough review to see where you can make cuts. You want to come up with a reasonable monthly payment you can afford without problems.
Contact Your Bank
Next, walk into your bank, give it a call, or go online to apply for a personal loan. Don’t be tempted to apply for more than you need because you’ve been eyeing a new home entertainment system. The more you borrow the bigger your monthly payment, so only take out the money you need to fix your car. Ask your bank what loan options they have.
Next, take the loan options your bank offers and compare them with other lenders. You might be able to find a better interest rate at another bank and you don’t have to have an account there to take out a loan. You want to find the loan with the lowest interest rate from a reputable financial institution. Don’t go to alternative lenders unless you absolutely have to.
Apply for the Loan
Fill out the loan application, attach all requested documentation, and submit the loan for approval with the financial institution. Keep in mind the bank will verify the information on the loan application and run a credit check at a bare minimum. Be prepared for additional documentation requests; they come with the process even though often they don’t make much sense.
Pay for Your Repairs
Once the loan is approved and the money made available to you, pay for your automotive repairs. Then, and this is the most important part, pay off your loan as promised. Don’t miss monthly payments as this will affect your credit score. It’s important you make your monthly payments on time and pay a little extra each month if you can.
Fairfax Auto Repair in Fairfax, VA, offers financing options for our automotive services. Call us for more information.