A car repairing loan is a kind of personal loan that is mainly borrowed for repairing a vehicle. No matter how much you maintain your car there is no guarantee that you will not require to replace or repair the parts of the car. At times there becomes some emergency to repair the car urgently and at that point in time you may not have cash on your wallet or you may not want to shell out big bucks. But at the same time, you will not be able to let the car stay with the problem too long since in such a case it will cause even more problems for your cars. During such a situation, an emergency car repair loan becomes the only option for the people.
Some best car repairing loan
There are various ways with the help of which you can pay for car repairs and some of the best options are discussed as follows:
A personal loan is the best option to repair your car in case you have good credit. The average processing time for getting the personal loan approved is 1 to 2 business days. The interest rate of the personal loan is capped at18% to 36% and you will get multiple lenders in the market for giving your personal loan. The average loan amount that you can easily get on personal loans ranges from $1000 to $20,000. The average return time remains from 3 to 5 years.
You can easily put the repairing cost of your car if you have a credit card and have an open credit limit on it. However, availing loans on a credit card for car repairing will charge interest for transactions. The rate of interest charged for credit card loans differs from card to card and so before you avail the loan on a credit card it is important to compare the rate of cards and if necessary apply for a new card that charges low introductory rate.
Some mechanics partner who has lenders offer finance to its customer. These types of loan are not only offered for car repairing but also for its regular maintenance. Although the rate of interest for this type of loan is a little higher availing mechanic financing will help you to prevent any further problem in your car. But if you think that the interest rate of such financing is higher than you can directly avail the loan through the bank or credit union.
Short-term loans are designed for borrowers who have bad credit and who require quick financing. But borrowing a huge amounts of money through short-term loans for repairing your car may cost you since its return back period is very short and the interest rate is higher.
These are some best options that you can avail at the time of emergency when you need to repair your car immediately but have shortage of cash in your pocket or cannot spend the limited money you have on car repairing.