Owning a vehicle is expensive. In addition to paying off the loan on the vehicle, paying insurance, and regular maintenance, such as oil changes and new tires, you also have to take care of major repairs to your vehicle. Those major repairs though can be tough to plan and budget for. If your vehicle needs to be repaired, and you don't have the cash on hand to just pay the repair bill, you have a few different financing options.
Apply for a Special Credit Card
There are special credit card companies that work directly with auto repair shops. These credit card lenders usually work with specifically approved auto shops. Oftentimes, these auto shops will advertise within their shop that they work with that particular credit card provider. You can also look up credit cards that are designed to be used at an auto repair shop and get a list of auto repair shops that accept the card in your area.
With a special credit card, you are generally offered an introductory deal, where you have a set number of months to pay off the work on your vehicle, and you will not be charged any interest. For example, perhaps you are given six months to pay off your balance without incurring any interest.
If you go this route, make sure you can pay off the credit card before the introductory period ends.
Apply for a Personal Loan
Another option is to apply for an unsecured personal loan. With an unsecured personal loan, you don't have to put up any colleterial for the loan. The loan will be offered to you based on your credit score and often based on your current income.
With an unsecured personal loan, the loan terms usually last a couple of years, giving you more time to pay off the repairs on your vehicle. In order to get an unsecured personal loan though, you generally need a decent credit score.
Apply for a Title Loan
You can also apply for a title loan. With a title loan, you are offering the title to your vehicle up as collateral. This is an option if you own your vehicle, and no other lender has a claim to the title of your vehicle. Title loans do tend to carry high interest rates, so you'll want to pay off the loan quickly. The great thing about title loans though is that they don't require you to have a great credit score; they just require you to own your vehicle.
If your vehicle needs repair, you can apply for a special car-focused credit card, take out an unsecured personal loan, or apply for a title loan. These are three options you can pursue if you need to fix up your vehicle, but don't have the cash on hand to pay for the repair. Talk with lenders near you like Liberty Lending Group about your options.