How to apply for an auto repair loan
Borrowing money to pay for auto repairs can be a straightforward process. Depending on your unique situation and financial history, it can also be relatively quick.
1. Determine how much you need to cover your repair costs. Be sure to account for things like parts, labor and any towing fees you may have incurred.
2. Shop around for a lender. Apply for an auto repair loan from multiple lenders, or shop through a platform like Credible to get multiple offers in one place. This not only saves you time and allows you to shop around without affecting your credit score, but also tells you how much you may qualify for and provides you with the best offers possible.
3. Choose your loan. Pick your lender based on the best loan terms offered to you (such as repayment period, monthly payments and interest rate), and even how quickly you can receive your loan funds.
4. Apply. Submitting a loan application involves a hard credit check, which will temporarily lower your score by at least a few points.
5. Get your money. Your lender will deposit your loan funds into the account you specified. Depending on the lender you chose, you may receive your funds as soon as the same or next business day.
Where to find an auto repair loan
Most banks, credit unions and online lenders offer personal loans for auto repairs
If you already have a relationship with a bank or credit union, you may want to see what loan terms and rates they offer. Otherwise, shopping around online can be a great way to get multiple offers at once without affecting your credit score.
Credible makes it easy to compare personal loan rates from multiple lenders
15 lenders to consider for auto repair loans
If you need an auto repair loan, consider these 15 Credible partner lenders.
Avant
- Loan amounts: $2,000 to $35,000
- Minimum credit score: 550
- Time to fund: As soon as the next business day
Axos
- Loan amounts: $5,000 to $35,000
- Minimum credit score: 740
- Time to fund: As soon as the next business day
Best Egg
- Loan amounts: $2,000 to $50,000
- Minimum credit score: 600
- Time to fund: As soon as one to three business days after successful verification
Discover
- Loan amounts: $2,500 to $35,000
- Minimum credit score: 660
- Time to fund: As soon as the next business day after acceptance
Freedom Plus
- Loan amounts: $10,000 to $35,000
- Minimum credit score: Does not disclose
- Time to fund: As soon as two business days
LendingClub
- Loan amounts: $1,000 to $40,000
- Minimum credit score: 600
- Time to fund: As soon as two business days
LendingPoint
- Loan amounts: $2,000 to $36,000
- Minimum credit score: 580
- Time to fund: As soon as the next business day
LightStream
- Loan amounts: $5,000 to $100,000
- Minimum credit score: 660
- Time to fund: As soon as the same business day
Marcus by Goldman Sachs
- Loan amounts: $3,500 to $40,000
- Minimum credit score: 660
- Time to fund: Typically three business days
OneMain Financial
- Loan amounts: $1,500 to $20,000
- Minimum credit score: None
- Time to fund: As soon as the same business day (but usually requires a visit to a branch office)
PenFed
- Loan amounts: $600 to $50,000 (depending on the loan term)
- Minimum credit score: 670
- Time to fund: As soon as two to four business days after verification
Prosper
- Loan amounts: $2,000 to $40,000
- Minimum credit score: 640
- Time to fund: As soon as one business day
SoFi
- Loan amounts: $5,000 to $100,000
- Minimum credit score: Does not disclose
- Time to fund: Three business days
Upgrade
- Loan amounts: $1,000 to $50,000
- Minimum credit score: 560
- Time to fund: Within one business day of clearing necessary verifications
Upstart
- Loan amounts: $1,000 to $50,000
- Minimum credit score: 580
- Time to fund: As soon as one business day
When you’re ready to apply for an auto repair loan, use Credible to compare personal loan rates in minutes
3 auto repair financing options to avoid
If you need to pay for an auto repair and can’t (or don’t want to) take out a personal loan, you have a few other financing options. But they can be costly, and you should only consider them as a last resort.
Payday loans
- Short loan repayment terms, often around two weeks
- Very high fees, which equate to an annual percentage rate ranging from 390% to 780%
- Low loan limits (anywhere from $100 to $1,000 depending on state regulations)
Car title loans
- Loans are generally limited to 25% to 50% of your vehicle’s value
- Your vehicle’s title will be held as collateral
- Average finance fees that equate to an APR of around 300%
- Typically need to be repaid in as little as 15 to 30 days
Credit card cash advance
- Usually have higher finance charges than regular credit card purchases
- May also charge transaction fees
- If you don’t pay off the balance in full, interest will compound with the next statement cycle
