For
Car Repairs

What Is a Car Repair Loan?

If you rely on a car to get you from point A to B, you can face some serious challenges if it breaks down. Getting repairs done can be costly, so what can you do if you lack enough spare cash to pay for the expense? Car loans could be the answer.

A car repair loan (sometimes known as an auto repair loan) is a specialist loan designed for business owners or individuals who require car repairs, but lack enough ready money to cover the costs. 

When you take out this type of car loan, you can get your car repaired rapidly, then pay the debt off over a certain loan period in monthly instalments.

What Can I Use a Car Repair Loan For?

A car repair loan is ideal for all purposes relating to vehicle maintenance, from repairing damage caused by accident to replacing parts that have worn out.

If you lack a warranty on your car or have been in an accident that is your fault and don’t have a comprehensive cover insurance policy, a car repair loan can be a lifeline to give you the funds you need. 

You can then get repairs carried out as quickly as possible so you can get back on the road.

Can I Get a Car Loan with Bad Credit?

Unfortunately, a lot of people struggle with their finances. 

Sometimes, it only takes one minor setback to send you spiralling into debt. Perhaps you experienced something unexpected like redundancy. Or maybe you had to pay a large unexpected bill, perhaps for the replacement of a major household appliance, and this led you down a path that ended in a cycle of unpaid bills and arrears that resulted in a poor credit score.

The good news is that even if your credit score is less than perfect, you can still obtain car loans. Many lenders will extend your credit for your auto repairs even if your credit rating has seen better days. 

That said, the interest rates you’ll be offered will be far higher than those provided to customers with a high credit score, and you may be offered a smaller loan amount.

What Happens If I Can’t Afford to Fix My Car?

If you can’t afford to fix your car, you could find yourself in a difficult situation. 

More and more of us rely on our own transport as public transportation services can be poor.

Therefore, having access to a working vehicle is paramount for many people.

Still, if you don’t have sufficient money to pay for those unexpected repairs, your budget can struggle to manage the strain.

There are a few options you can consider if you’re unable to afford to fix your car:

• Speak with your mechanic and ask if a more affordable fix is available, even temporarily, and whether the repair is urgent 

• Purchase used parts – you may be able to reduce the cost of your repair by purchasing used parts. Not all mechanics will work with used parts but plenty will, which could significantly reduce the final bill.

• Check if your car is still in warranty – some cars have an extended manufacturer’s warranty on them – sometimes as long as seven years. You may also have paid for an extended warranty on your car and forgotten about it. Make sure to check as this could cover some or all of the cost of your repairs.

• Do your repairs – you can often find tutorials on YouTube that will help you carry out repairs on your car without needing to go to a mechanic. Just buy the parts yourself and save the labour costs. Of course, this may not be the best option if you don’t have experience with this. 

• Sell your car – if the repairs are extensive, it may be worth thinking about selling your car. Some companies will buy cars even if they're in poor condition.

• Use a credit card – if you have a credit card, you can use it to fund the repairs if the total amount is under your permitted limit. This can be an expensive way of borrowing, especially if you have a high APR.

• Take out a car repair loan – perhaps the best option is to take out a car repair loan, but it’s essential to find out the interest rate. Although you can borrow money from a payday lender, bear in mind that the cost of borrowing can be extremely high, and you only have a short period in which to pay back the total amount. This could cause you to end up in a cycle of debt. 

Can I Pay the Loan Back with Instalments?

Car repair loans work in a similar way to any other type of loan. 

When you take the loan out from the provider, you’ll sign up for an agreement to pay a specific instalment each month.

As long as you continue to make the payments on time and for the correct amount, your credit rating won’t be negatively affected and you could see a boost.

How Can Creditspring Help?

Creditspring is a great option if you need to pay for any unexpected vehicle repairs. 

When you become a member, you can take advantage of two no-interest loans (Rep. APR 83.1%) every year, ensuring you have access to available funds if and when you need it.

Whether you discover your car has failed its MOT, or you want to keep your no claims bonus intact, Creditspring offers a perfect solution to get those car repairs done.

There’s no added stress or hassle and you won’t have to seek out a personal loan from an expensive provider who will charge you a high rate of interest.

One of the best things about Creditspring is that there is no-interest or additional fees. 

That means you only have to repay the amount you borrowed, plus your low monthly membership fee. 

This makes a Creditspring loan an affordable borrowing option compared to other lenders.

You can check whether you’re eligible to become a Creditspring member quickly and easily without having any adverse effect on your credit rating, so there’s nothing to lose by checking your options. 

Check whether you’re eligible to join Creditspring today! If you’re eligible you’ll have the funds available when you need it to get emergency repairs done and keep your car running.