You Should Consider Financing Your Car Repairs

Financing car repairs is a tremendous idea when looking to save on repairs, but you do have to be smart in your decision when shopping for the loan. Often times you will find that some lenders like to take advantage of their customers, so proper research is required when financing car repairs.

Usually the single most important determining factor in getting approved for a loan is your credit score. The quality of your score will determine the interest rate you receive, and obviously the better the score, the better the rate. Unfortunately if you have a bad score, the interest rates can be inflated to unfair levels, and make taking out a loan difficult.

You can avoid these ridiculous interest rates by doing a couple things. If you can, always go with an asset based lender. These lenders focus very little on your credit score, therefore the interest rates are fair and equal for all applicants.

If you are not going with an asset based lender, make sure you only apply for what you need. When financing car repairs, every little bit you finance is going to affect your payments, so only apply for what you absolutely need. If you have any amount of money to pay a portion of the repair before taking out the loan, do that. This will lower the principle amount that you must borrow, therefore lowering your payments.

Another option to look at when financing car repairs, is to negotiate. If you are unhappy with your interest rate, simply talk to a loan officer and see if they will budge at all. Often times that officer will shop around for you to find the lowest rate and payments. The only drawback to this is that sometimes they will charge a commission on the loan for their work. If after paying the commission you still have a better rate than before, go with it and be happy.

If you are financing car repairs, and still having trouble getting the rate and the payments you require, don't be afraid to go elsewhere. Remember this is your money, and you never need to feel pressured into accepting a loan. If you feel you are being pressured, simply walk away and look to another lender. The key in financing auto repairs is to be patient, but diligent. If you adhere to these principles you will find the process going smoothly and you should be on your way to financing car repairs.