We here at Euro Car Clinic understand that most people do not have money set aside for car repairs. This is why we work with Snap! Finance to help our customers get the financing they need so we can repair their European automobiles. Aside from this financing option, Credit Karma advises that there are other ways you can get the money you need to pay for your auto repairs. Here is what they are.
Traditional Financing
You need your European automobile to get you to and from work and for other reasons. Getting it repaired as soon as possible is your top priority. Credit Karma recommends that you approach your bank or credit union for the financing you need to pay for the repairs. The reason why is that a bank loan comes with the lowest interest rate of all of the financing options available.
In addition, banks will give you up to two years to pay the loan back. This allows you to spread the payments over time so they are lower. This helps if you are having financial problems. The caveat to a bank loan is you must have a high credit score. This may disqualify you if you have had credit problems in the past. You also have to have collateral to support the loan.
Another traditional financing option is using your credit card or an existing line of credit. The problem with this option is that you may have a high interest rate attached to either the card or line that will make it nearly impossible for you to pay off the auto repairs. Check the interest rate on your card or line to see what it is. It could be as high as 15 percent to 20 percent.
If you do the math, you will see that the charge for the auto repair will earn interest and take decades to pay off. This makes charging the repairs not worth it. If you have good credit, Credit Karma says you can apply for a low-interest credit card that will make paying off the repairs easier.
Non-Traditional Financing
Now, let’s talk about the options for people with bad credit. Specifically, you can take out a payday loan that will give you the money you need right away. Unfortunately, a payday loan comes with a high interest rate and must be paid back out of your next paycheck.
The other non-traditional financing option is a title loan, which you can take out if you own your European automobile. The problem with this loan is the same with a payday loan. You will pay high interest and must pay back the loan right away.
As we mentioned above, Euro Car Clinic in Signal Hill, CA, works with Snap! Finance to help our customers pay for their auto repairs. You can apply directly from our website.