Times have been tough for a lot of people this year and you might not have money in your household budget for auto repairs. This can be terrifying for those who rely on their vehicles. Thankfully, Credit Karma advises that there are financing options consumers can take advantage of to help them pay for their auto repairs. LP & Sons Auto Care works with Snap Finance for our customers who are facing tough times and cannot afford to get their car, truck, or utility vehicle fixed.
Bank or Credit Union Financing
If you don’t want to use Snap Finance or you have an excellent relationship with your bank or credit union, you should start there to secure your auto repair funds. Bank or credit union loans are better than alternative financing because they offer lower interest rates, more time to pay the loan back, and fewer penalties if you cannot make a payment. This does not come without a caveat, however.
Banks and credit unions are picky about who they lend money to. Even if you have had an account with your bank or CU for years, it may not approve your personal loan. The loan application is invasive, checking your credit score, your debt-to-income ratio, your income, and your expenses. Banks and credit unions also require collateral, i.e. a possession to back up the loan to its full value.
Alternative Financing Options
Don’t panic just yet if you have less-than-perfect credit and know your bank will say no. There are alternative financing options to get the money you need to pay for your car repairs and Snap Finance is one of them. You can also charge your repairs to your credit card, but make sure you use a card that has as low of an APR as possible. You don’t want to charge on a card with a high APR percentage.
You also shouldn’t panic if you’ve maxed out your credit cards. Payday and title loans can get you the money you need for your car repairs but Credit Karma cautions you to use them wisely and only as a last resort. Both loans charge exorbitant interest rates and penalties, sometimes as much as 300 percent. A title loan also uses your vehicle’s title as collateral, which can put you at risk of losing your car.
Payday and title loans also require payback within weeks, which might not suit your budget. Again, don’t panic. Bring your vehicle into LP & Sons Auto Care in DeLand, FL, to discuss your options and get your car fixed. Call us to schedule an appointment. We’ll work with you as best we can.