It can be tough if your car is broken down and you can’t afford to get it repaired. Fortunately, there are options for financing auto repairs for consumers, although some are better than others. We here at Fairfax Auto Repair also offer financing through Bosch Service. You can apply for the financing directly from our website. If you are not comfortable with this option, Credit Karma suggests the other options below.
Bank Loan
According to Credit Karma, the best option is to apply for a loan from your bank or another traditional financial institution such as a credit union. These loans come with low-interest rates and extended payback periods. You need excellent credit to apply for a bank loan, and you must have collateral to back up the loan. It’s much easier to pay back a bank loan than it is the other options listed below.
Credit Card
You could put your auto repairs on your credit card, but Credit Karma warns that if you have a high-interest rate on the card, it will take you years to pay off the auto repairs. If you have excellent credit and can apply for a credit card with low or zero interest for a short time, this might be the way to go. Otherwise, paying for your auto repairs on your credit card may make it difficult to pay off the debt.
Payday Loan
A payday loan is another option for those who don’t have good credit, but the problem with this option is not only are the interest rates high but you are expected to pay back the loan at your next payday. For some, this may cause other financial problems. You may not have enough money left over from your paycheck to pay your other bills. This is an option that should be used as a last resort because the payback terms are often unreasonable. In fact, payday loans are illegal in some states.
Title Loan
Another loan that is illegal in some states is a title loan. This loan also comes with high-interest rates and short payback periods. Some people don’t have a choice, however, if they have bad credit or no credit. To secure financing from a title loan, you must turn over your vehicle’s title to the lender. Once you’ve paid back the loan, you get the title back.
Fairfax Auto Repair is the best auto repair shop in Fairfax, VA, and, as you can imagine, a title loan puts you at risk of losing your automobile. Again, you can apply for financing for your auto repairs through Bosch service on our website.
