If you have a car, it’s likely that you are quite dependent on it. You probably can’t imagine going anywhere without your car, but mostly, having to go to the car without your car and dealing with people on the subway isn’t a scenario you usually like to imagine.
What happens when your car breaks down though? What do you do when some parts turn out to be faulty and you don’t have the money to repair it? Maybe your insurance or your car warranty doesn’t cover it either but you need to repair your car as soon as possible.
Well, certain financing options can help you get through this dreadful situation. Let’s take a look at some of them.
1. Payday Loans
Payday loans are short term loans borrowers have to pay back anywhere from within 1 month to 72 months. They typically come with interest. In this case, your borrowers ask you to give them a post-dated check which will have the amount you are borrowing along with the interest so they can withdraw the amount when your next paycheck comes. This way, they have guarantee while you have the amount needed to pay for your auto repair on time.
Payday loans lenders typically don’t check your credit card scores or don’t care much for them. The only thing that holds any importance for them is whether you have a steady income.
If you don’t know where to begin to go about applying for your first payday loan for car repair, PaydayMe is as good a place to begin as any.
2. Personal Loans
Personal loans are what you call long term loans. In this case, the borrower lends you money for auto repairs and states it for personal reasons. Your payment dates are usually due monthly and you keep on paying it until you have completed the full amount.
Personal loan lenders need you to have a good credit score. As they are letting you borrow a large amount of money and for a long period of time, they need to know you will be able to pay it back even years later if your finances aren’t always in the best situation. So, while it’s a nice scheme, getting approved for it is hard.
3. Car Repair Loans
In this situation, you get the exact amount needed to repair your car. The lender expects you to return the money within 30 to 60 days and if you fail to do so, your car might be repossessed.
Like payday loans, the lenders don’t care for your credit score. Why would they? They have your car as their guarantee.
4. Credit Cards
In case you have a credit card with an open credit limit, one option would also be to put the associated costs on your card. You should remember that you are going to be charged interest for the transaction, which depends on the bank and type of card. If you are considering to apply for a new card, it would be good to compare introductory rates on each card and select the one with the lowest rate.
5. Family or Friend
We understand it might not be very pleasant to ask for a loan from a family member or friend. However, it’s one of the best options in the sense you don’t put yourself at a terrible risk of losing a good amount of money or your car just because you wanted to repair your car.
If you don’t feel comfortable simply asking for a loan, you can even strike up an agreement where you pay your friend or family back with interest. This way, you can keep your head held high.
Whichever option you choose, always read up on the terms and agreement. If you don’t, you might end up losing way more than you bargained for if you fail to pay back the borrowed amount on time. The payday loans might be the best option though if family is out of the question, for they are a short period loan but not too short and not too risky.