Are you a car owner facing an expensive auto repair? Well, you need to find out the available options you can use to finance your auto repair. Maintaining the type of car you own isn’t that easy especially in the era where automotive repair and the maintenance industry strive to increase the revenue for more profits.
At Auto Repair Sylva we realize that car repair can be quite expensive. Thus, every time you visit a mechanic and find out that the repair cost seems too high, learn to check the cost estimate from consumer report care. It will give you the general idea about the cost of repairs to avoid being overcharged. The following are solutions that will solve the question: what options do I have to finance an auto repair?
Use of a credit card
Always use a card that cash you back to reap benefit from the purchase or pays you mileage. This option is quite efficient since most of the shops currently accept credit card payments. If you have a higher credit score, you definitely qualify for an introductory period having 0% annual percentage rates. Similarly, you have a chance of paying for your car repair using your credit card despite having a bad credit.
What are the advantages of using a credit card?
- You will not owe any interest as long as you pay off your balance just before the grace period ends.
- You can prequalify and eligible to use this card without the checker necessarily checking your credit report.
- Most of the mechanics accept these credit cards.
Title loan or pawn shop loan
Perhaps this is the easiest option you can apply when in need of a quick cash. You simply need to take an item to the pawn shop where its value will be appraised and given a loan based on its value. However, you have to leave your possession as a collateral to act as a security. You will be given certain time to repay the loan as per the state law failure to which you lose your possessions.
High-interest rate soft loan
This type should probably be your least option. It features extremely high-interest rates that can easily trap you in an expensive cycle attempts to pay off the loan. Payback periods are quite short and when the time limit elapses, the lender will automatically roll over, refinance and add more interest and fee.
Using your car as collateral in this business is very risky. If you fail to pay, the lender sells your car making the repair a wasted expense.
The final verdict on car repair financing
Which option do you find better to finance your auto repair? Always pay your repair cost with a credit card if you have a good credit. In case you need time to make your payments, consider using the unsecured personal loan.
Use your valuable possessions on pawn shop loan if you have low credit. When confronted with a difficult situation and you have neither valuable possessions nor good credit to use as collateral, consider a title loan but only be very certain to pay your debts in time to avoid losing what you can’t afford.