The holidays are here and the last thing you need is to spend money on your automobile. If it needs to be repaired, however, you are left with no alternative other than to spend that money. Actually, Credit Karma offers some suggestions to help you secure financing for your auto repairs so you can worry about paying for them next year. Scotty’s Automotive is going to list some of the suggestions below.
Bank Loan
According to Credit Karma, one of the best options is to secure a loan from your bank or credit union. A personal loan comes with low-interest rates and extended payback periods. You need to have stellar credit in order to secure this loan, however, so it may not work for all individuals. You also need to have collateral to back up the financing. There is an approval process for this loan, so you won’t get the money right away. This being said, this is the safest option on this list.
Credit Card
You can also use a credit card to pay for your auto repairs, but take a look at the interest rate on your existing cards first. You might be surprised to find that some of them are as high as 19 percent or more than 20 percent. This makes it nearly impossible for you to pay off your car repairs. If you have good credit, Credit Karma suggests that you apply for a low-interest credit card or one that has zero interest for a short time. This gives you the chance to pay off the repair bill without interest.
Payday Loan
Not everyone has stellar credit, however, so there are alternative financing options available. Credit Karma warns, however, that these options often come with high interest rates and short payback periods. This makes it difficult for you to pay the loan off if you already don’t have money for the car repairs. One such option is a payday loan where you borrow money against your next paycheck.
Title Loan
Another option is a title loan, and this financing is secured by your vehicle’s title. In other words, you turn the title over to the lender and do not get it back until you’ve paid the loan and interest in full. This can be dangerous, as you could lose your automobile. Still, for those with poor credit, the advantage of no credit check and instant cash is appealing.
Finally, Scotty’s Automotive in Montague, NJ, works with two financers to help our customers pay for their auto repairs. In fact, you can apply for a loan on our website.
