Times are tough right now for many people, and you may be facing an auto repair bill that you simply do not have the money to cover it. We here at George Automotive Services understand how stressful this can be. You need your car, truck, or utility vehicle, and trying to find ways to get around without it not only adds to your stress but can prove to be more expensive at times. Thankfully, there are financing options available to consumers who cannot afford their auto repair bills. Credit Karma offers the following suggestions below, and we also have an option for you in our shop.
Traditional Financing Options That Are the Safest
According to Credit Karma, the safest way to finance your automotive repairs is to take out a traditional bank loan. This type of loan is called a personal loan, and most banks will let you take out the money you need to pay for your automotive repairs provided you have a good credit score and the collateral to back the financing. The reason why this option is the safest, alongside a bank line of credit, is that the interest rates are the lowest of all financing options and the bank will give you plenty of time to pay back the loan. Consumers run into a problem securing these loans if they don’t have good credit or collateral.
Non-Traditional Financing Options That Aren’t As Safe
This, consequently, causes consumers to look into non-traditional financing options that, although they provide the consumers with the money they need, come with difficult payback terms that can get consumers in trouble. The two most common alternate funding options for people with bad credit are payday and title loans. The payday loan means you borrow money against your next paycheck and you pay back the loan plus a high interest rate out of your next paycheck. This can leave you in deep trouble for money. A title loan only works if you own your automobile and have the pink slip. To secure the money, you must turn the pink slip over to the lender and you won’t get it back until you pay off the loan and interest.
Another option to pay for your auto repair bills is a credit card. Credit Karma warns that the problem with this option is the interest rate. You may have plenty of room on your credit card to cover your auto repair bill, but you may be paying an interest rate as high as 20 percent, which makes it nearly impossible to pay off the credit card. Unless you have good credit and can secure a card with zero interest for a limited time or a low interest rate, paying your auto repair bill with a credit card can get very expensive.
Finally, George Automotive Services in Danville, PA, offers auto repair credit to our customers through Snap! Finance. This might help you get the money you need to get your automobile repaired.