Imagine, you are in your car going to get groceries. Suddenly, a dog runs in front of your car and you swerve to avoid hitting it. The dog survives but the front bumper of your car doesn’t. You need to fix your car but you need to take a car loan. It might be a daunting task if you are not familiar with the lenders who specialize in swift car repair loans. You have to know the interest rates, the loan passing period, the repayment period, and the maximum amount to make a calculated and well-thought decision.
In today’s article, we will talk about the best companies to get swift car repair loans from. We will also discuss some alternative ways to fund your car repair. Let’s dive into it.
Best Companies to Get Swift Car Repair Loans
When you need immediate funds for vehicle repairs, you might feel confused as the automotive industry can be very disorienting. There are numerous lenders on the market and they have different competitive rates. We have analyzed and chosen the best ones for you. All of these provide quick loans for unexpected car expenses.
Upgrade
A credit score is a key factor for getting a loan. The higher the credit score, the more likely is that your loan application is going to be passed. For people who have bad credit, an Upgrade is like a saving grace. Upgrade loans are made for people who have bad credit scores as the minimum credit score required for getting a loan is just 620. You can also get a soft credit check for pre-qualification. The lenders also allow joint applications.
Upgrade offers you a loan amount from $1,000 to $50,000. It also has a pretty standard interest rate which can be anywhere from 8.49% to 35.99%. It offers a repayment period of 24 months to 84 months. If you use your car to secure your loan, then Upgrade will provide you an unspecified amount of discount on the interest rate. If you have an Upgrade Rewards Checking Plus account, then you will have a 20% discount on your loan interest rate.
Upgrade falls short in one area: its origination charge. The origination charge ranges from 1.85% to 9.99% of the loan amount. It also offers low minimum loan amounts. So depending on the size of your repair expense, you may not need to borrow more than you need. Funding is usually available within one working day following approval.
Upstart
Upstart’s low minimum interest rates make it a wonderful choice compared to other lenders if you have great credit. That doesn’t mean that your loan will be rejected if you don’t have great credit. Upstart accepts loan requests from all types of lenders with all types of credits.
Upstart offers you a loan amount ranging from $1,000 to $50,000. It has an interest rate that can range anywhere from 6.40% to 35.99%. You will not get any discount on this interest rate and you also cannot apply for a joint loan application. The lender may also charge you an origination fee of up to 12% of the loan amount.
Upstart offers you a period of 36 months – 60 months to repay the loan. Upstart’s eligibility criteria are rather explicit, and you can pre-qualify with a light credit check. If your loan is authorized, Upstart can fund it in as little as one business day.
First Tech
If you need a small amount of money to fix your car, First Tech is the best option for you. It offers small loans as small as $500 to fix your car. Like most credit unions, the lender’s maximum rate is low, and you won’t have to worry about an origination charge draining out your loan payout.
First Tech offers you a loan amount that can range from $500 to $50,000. It has an APR range of 8.99% to 18%. It also provides you with a window of 24 months which can be upto 84 months to pay back the loan. If the loan application is approved, then the funds will be given to you within a day.
While First Tech doesn’t state the minimum credit score of the borrower, it is estimated that a person has to have a minimum credit score of 660. You can also get prequalified by a soft credit check. If you don’t have the credit score to get approved individually, then you can apply for a joint loan application. The credit union also provides loans that can be backed up with a savings account or equities.
PenFed
PenFed has a lot of features that make it a wonderful choice for fixing cars, no matter how much it costs. It has a lower initial loan amount than most lenders, and the highest APR isn’t as high as it is for other personal loans. Even, if your credit isn’t great. Just keep in mind that you won’t get a rate break for setting up scheduled payments like some other lenders.
PenFed offers you a loan amount of $600 which can rise to $50,000. It’s APR range is around 7.99% – 17.99%. You also get a repayment period of 12 months to 60 months. It also doesn’t have an origination fee which makes it a good choice. But, it has a $29 late fee if you miss any payment by five days.
PenFed doesn’t say what kind of credit or income you need right away, but you can get pre-approved with a soft credit check that won’t hurt your score. You can also apply with another person as a co-borrower to increase the chance of getting your loan passed.
SoFi
SoFi is one of the biggest names when it comes to personal loans. It is one of the few lenders that offers fee-free loans. It doesn’t charge you any hidden fees such as late or returned payments like other lenders. Rather, it clearly states the amount that you need to pay.
You can loan anywhere from $5,000-$100,000 from SoFi. So, SoFi is not for small-time repairs. It is a great option for people who need funds for major repairs. The interest rate ranges from 8.99% to 25.81%. The rates are pretty standard. It also offers a 0.25% discount if you opt for automatic payments. You usually have to pay the loan back in 24 months to 84 months.
The loan amount will be given to you as soon as the application is passed. But, the approval time varies from borrower to borrower. SoFi allows joint loan applications. It helps people who need the economic net to apply for a loan. But, it isn’t a good move for a quick loan as the lender will then investigate the borrowers which may take a long time.
SoFi also requires that the borrower has a high credit score. According to a survey conducted by the lenders, the average score that one needs to get a loan from SoFi is roughly around about 747 in 2022.
Also Read: Speedy Approval Motorcycle Loans for Bike Enthusiasts
Alternate Ways To Finance Car Repair
If you fail to get a loan to repair your car, you might get into a lot of trouble. We will now present to you some alternative ways to finance your car repair besides the traditional loan.
Payday Loans
Payday Loans are also known as check advance loans or cash advance loans. It requires you to give a post-dated check or give the lender permission to make an automatic withdrawal of funds from your bank account. You might have to pay back the whole loan amount plus fees by the time you get paid again.
There are limits and risks to borrowing against your next paycheck. The maximum payday loan amount may be capped at a certain amount in states that allow payday loans. The fees can be as high as 400% or more APR, even for a small loan.
Car Title Loans
Short-term loans like car title loans come with a lot of risks. If you apply for a car title loan, the seller hands you money in exchange for the title of your car. You will get your title back when you pay back the loan and the fees. This is usually due 30 days after the loan is given.
If you don’t pay on time, you will either have to turn in your car or pay “rollover fees”. These are extra fees that help you to delay the repayment. It is risky to borrow money this way. Most car title loans have an APR of 300%.
Mechanic Financing
Some mechanics offer financing through lenders and some mechanics offer financing through a branded credit card. These are often good for more than just repairs. For example, it can be used to pay for annual maintenance and keep problems from happening.
But before you apply, look at the other options. Try to go straight to a bank or credit union instead of going through your mechanic’s third-party loan as the rates are often better that way.
Credit Cards
You can also finance your car repair with a credit card but it would be a burden if you use your existing credit card. For instance, if you borrow $1,000 and pay $25 a month, the interest could go up to $395 over 56 months. This will happen if the APR is 15%. At 20% APR, it would cost you 67 months and close to $662 in interest to pay for the repair.
Conclusion
Getting quick funds for your car repair is a tough task but not impossible. Make sure to check the rates thoroughly before applying. Always choose the one that will not break the bank to make the car. We hope this article helps you. Drive safe and Choose safe!
