Can’t Afford Financing? Here’s Your Options
Coming up with cash for an emergency with auto repair isn’t easy. The survey done by AAA, proved that a person could have to spend almost $1,200 per year for auto repair and maintenance costs. And that’s only for a new car. If your car is new, you are doomed.
Well, maybe not. Even if you can’t come up with the required cash by using your finances and your warranty and insurance doesn’t cover it, there are few ways you can provide the finance needed. Let’s take a look at some of them.
1. Quick Loans
Quick loans are even called check advance loans. As the name suggests, the loan is dependent on your payday. Your lender will lend you the money you want with interest provided you give them a post-dated check that has the same amount listed so they can withdraw it from your bank account on your next paycheck.
In some cases, you can give your lender the permission they need, so an automatic withdrawal can be made.
This website is a great example of how payday loans work. Like in the example we have given, payday loans usually have a limitation on how much you can borrow and it does come with some risks.
However, the limitations are good for it ensures you don’t borrow more than you’re able to afford. You also don’t need to have a good credit score to qualify for payday loans.
2. Personal Loans
Personal loan is another option for auto repair financing. In this case, a good credit score is a must. If you do have it, you will be able to take out a loan in no time. Mostly, it is dependent on your lender and how fast they work.
Personal loans work on installment basis. In other words, whatever you’re borrowing from your lender has to be paid back with interest on a monthly basis with a fixed short amount until you reach the final borrowed amount.
Sometimes, if your credit score isn’t good enough to help you qualify, you can use a co-signer who can guarantee that you will pay back your debt.
3. Title Loans
Title loans or car title loans are similar to payday loans. They allow you to borrow money for a short amount of time to repair your car but you have a considerable risk factor to look at.
That is, the lender usually asks your car title to be what you would be giving up to them if you are unable to pay back in time.
This is actually the shortest borrow time, with lenders usually allowing a 30-day period. This is a risky and expensive option but you won’t face much problem getting approved because lenders don’t really care to check your credit score.