It can be so tough if you need your car yet you cannot afford to get it repaired. We understand this here at Righter’s Auto Repair. We work with our customers and offer a financing solution to help them pay for their auto repairs even when things are tight. There are other ways you can finance your auto repairs, as well, according to the financial website Credit Karma. Let’s talk about financing options for auto repairs below and their pros and cons.
A bank loan is the best way to go because it is a traditional form of financing that offers lower interest rates and longer payback periods. Many people find it advantageous to finance their car repairs through a personal bank loan that they can pay off over the next few years.
The cons of a bank loan include an extended approval process and the need for excellent credit. You must also have collateral that can be used to back up the loan, i.e., something you own that equals the value of the loan.
Credit cards are another option but their interest rates often make them undesirable. If you have a credit card that has a 15 percent interest rate or higher, it will take you years to pay off your car repairs and, unfortunately, the repairs will be much higher with the added interest.
Credit Karma recommends that if you have excellent credit and can secure a zero-interest credit card, this allows you a limited time to pay off the car repairs without interest. When you use a credit card this way, it is beneficial.
A payday loan is an option for people who have poor credit. Money is borrowed against a future paycheck. The advantage of a payday loan is you don’t need good credit to get one and you receive the money instantaneously.
Payday loans come with a lot of cons, however. First, the interest rates are exorbitant, sometimes as much as 300 percent. Second, you will be expected to pay back the loan and its interest on your next payday. If you can’t afford to pay for your car repairs, you won’t be able to pay back the loan.
Snap! Finance is the option that we offer here at our shop. This financing works with all types of consumers including those with bad credit. You can apply for the loan before your appointment for your automotive repairs.
Once the financing is secured, call Righter’s Auto Repair in Grand Ledge, MI, to schedule your auto repair appointment.