A car repair may pop up when you least expect it. Perhaps a flat on your way to work turns into a mechanic advising you to replace all four tires, or a fender-bender results in you needing to fix your taillights. No matter what the situation is, you’ll have to decide how to afford the necessary repairs.
Since a personal loan in Jackson, TN, can typically be used for a variety of purposes, it could be one way to help fund a car repair. With a personal loan from a bank, credit union or online lender, you could receive fixed terms and predictable monthly payments that may make your car repair costs more manageable over the long term.
Prequalifying with a few different lenders could help you find the best personal loan terms for your budget. Prequalifying isn’t a final loan offer, which means you still need to complete a full application. However, checking to see if you have any prequalified offers might give you a good idea of what type of loans could can expect.
Keep reading for some additional ways to potentially help pay for your car repair before you decide if a personal loan is right for you.
Consider using a credit card
If your repair is urgent, you could look into charging the cost to a credit card you already have or consider getting a new one. Many credit cards may have a higher interest rate than a personal loan, but you could have or find a card with a low or 0% introductory annual percentage rate. With a low or 0% APR, you’ll save interest in a set amount of time, known as a promotional or intro period. This period can last anywhere from six to 21 months or more1, depending on the card program. Once the period is over, the unpaid balance will be charged the card’s non-promotional APR, so it’s a good idea to pay off your balance as soon as possible.
Use your savings
If you have savings, you could use them to cover your car repair. Then, instead of repaying a loan, you’d focus on replenishing your savings.
To pay yourself back, you could look into setting up regular automatic transfers from your checking account into your savings account. Or, see if you can split your paycheck direct deposits so a portion goes directly into the savings account every time you get paid.
You could also use this strategy to help you save up for repairs if you don’t have enough savings right now. Either way, the less you have to think about doing it, the easier it may be to set aside the money you need.
Take on additional work
If your repair isn’t urgent, you could consider looking for a side gig to help you set aside extra money for your car repairs. Think about how many hours per week you could take on extra work and what kind of part-time, freelance or gig work appeals to you. Even a few hours mowing lawns or cleaning houses could help.
Once your repair is taken care of, you might put that additional income toward building an emergency fund so that you have extra money on hand in case you have urgent expenses in the future.
Ask for support
Reaching out for help from friends and family can be difficult, especially when finances are concerned. But it could be an option if you don’t want to borrow from a lender, or you don’t think your credit score is strong enough to get the loan terms you want.
If you decide to borrow money from someone you know, make sure you both agree to the terms of the arrangement just as you would with a bank — create a contract that includes the amount borrowed, whether you owe interest and the payment due dates. Having an agreement in place could help you stay on track and ensure there aren’t any hurt feelings, or worse, due to miscommunication about the loan.
Find the best option for your situation
A personal loan may be the best way for you to cover urgently needed car repair costs because it offers fixed terms and predictable monthly payments. Prequalifying a few different loan options might help you find the best one for your budget. You could also look into a low or 0% APR credit card. If you can hold off on the repairs, you could start saving up or ask for financial support from friends and family.
Take as much time as you can to weigh your options and make the right decision for your situation and your financial future.
