Can You Get An Auto Repair Loan If You Have Bad Credit?
A sudden need for an auto repair can be what destroys a household budget. When you're already dealing with a tense financial situation that includes bad credit and low savings, the need to spend money on your car is unwelcome. Yet there is hope. Not only might there be a warranty that takes care of part of the repair costs, but there are also auto repair loans that you can get no matter your credit score. These companies know that if you have no car, you might not be able to get to work -- and that would just make your financial situation worse. So, you do have a chance at getting an auto repair loan even if your credit score is in dire need of repair itself.
You May Qualify for a Smaller Amount or Need a Minimum Income Level
Any loan meant for people with bad credit will likely have some restrictions. In the case of an auto repair loan, the amount you qualify for could be smaller than what someone with great credit might qualify for, or you could need to have a minimum level of income. Keep in mind that the lender does realize that money for even part of the car repair expenses can be difficult to dredge up, so they will try to get you enough to pay for the repair.
These Loans Could Help Your Credit
Most auto repair loan companies report the loan to the credit bureaus. This means that, as long as you make those payments on time, you're going to have a good payment record reported to the bureaus that form the basis for all your credit scores. So, if you're unsure if you should take out this loan because you're worried about how it might look on your report, be positive. Overall, the loan's effects should be very good, credit-wise.
Not the Same as a Payday or Title Loan
Note that these loans are not the same as payday or title loans. You're not putting your car title up as collateral, nor are you borrowing against a future paycheck. These are plain loans for a specific amount for a specific purpose, and you pay them back in installments like you would with any other loan.
While you could try to put off part of the repairs or try to take buses everywhere for a while as you save up, it's much easier -- and better, in terms of improving your credit score -- to find an auto repair loan. Even if you have bad credit, these loans are available to you so you can get back on the road. Go to website to learn more.