Most auto service shops accept credit cards, so you can charge your car repairs. Credit Karma advises, however, that this can make paying off the auto repair nearly impossible. If your credit card has a high interest rate, the money you pay each month will go to that instead of the principal cost of the auto repair. It’s better to apply for a low-interest credit card or one that offers no interest for a limited time. Another option is to have your car repaired at JTR Repair because we work with Snap! Finance. Let’s talk more about auto repair financing below.
Bank Loans
You can also approach your bank or credit union to see if you qualify for a personal loan. These types of loans come with the lowest interest rates on the market. They also allow borrowers more time to pay back the loan, which will work well for those with a tight budget. The longer you have to pay back the loan the lower the monthly payment. In order to qualify for a bank or credit union loan, however, you need to have excellent credit as well as collateral to back the financing. In addition, it may take up to 30 days to receive loan approval and the borrowed funds. Many people can’t wait that long for their automobiles. This being said, Credit Karma advises this is one of the best options available to consumers.
Payday Loans
For those who don’t have perfect credit, you may be able to obtain a payday loan if you live in a state that allows them. The caveat with payday loans is that you borrow money against your next paycheck. In other words, you borrow the money now but pay back the full amount plus interest out of your next paycheck. If you can’t afford your auto repairs, it’s going to be extremely difficult to pay back the payday loan. In addition, some people get into a vicious borrowing cycle of which they cannot get out.
Title Loans
Another option for those with poor credit is a title loan. You can apply for this loan if you own your vehicle and live in a state that allows them. In order to secure the financing from a title loan, you must turn over your vehicle’s title to the lender. You will not get the title back until you pay back the loan plus the interest, which Credit Karma warns can be very high.
This being said, again, JTR Repair in Crawfordsville, IN, excepts Snap! Finance at our shop. You can apply for the financing online and then schedule an appointment to have your car repaired.