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You probably know the feeling of dread when your car starts to make funny noises — especially if you don’t have a lot of cash on hand. If you’re in this situation, auto repair loans could help you cover the expense of fixing your car.
Depending on the lender, you might be able to get the funds from an auto repair loan as soon as the next business day. Just keep in mind that you’ll generally need good credit and verifiable income to qualify, though some lenders also offer options for poor and fair credit.
Here’s what you should know about auto repair loans and where to find them:
- 15 personal loans for auto repair
- What is an auto repair loan?
- How to apply for an auto repair loan
- Auto repair loan frequently asked questions
15 personal loans for auto repair
Personal loans can be used for almost anything, including auto repairs. Here are Credible’s partner lenders that offer auto repair loans:
| Lender | Fixed rates | Loan amounts | Min. credit score | Time to fund |
|---|---|---|---|---|
 View details | 9.95% - 35.99% APR | $2,000 to $35,000** | 580 | As soon as the next business day (if approved by 4:30 p.m. CT on a weekday) |
*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state. **Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. |
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 View details | 6.49% - 29.99% APR | $5,000 to $35,000 | 740 | Next business day |
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 View details | 5.99% - 29.99% APR | $5,000 to $35,000 | 600 | As soon as 1 - 3 business days after successful verification |
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 View details | 6.99% - 24.99% APR | $2,500 to $35,000 | 660 | Funds can be sent as soon as the next business day after acceptance |
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 View details | 7.99% - 29.99% APR | $10,000 to $35,000 | Does not disclose | As soon as 2 business days |
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 View details | 10.68% - 35.89% APR | $1,000 to $40,000 | 600 | Usually takes about 3 days† |
LendingClub personal loans review †Based on a majority of borrowers from LendingClub's marketing partners who were issued loans between 1/1/19-12/13/19. The time it takes for your loan to be funded may vary. |
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 View details | 15.49% - 35.99% APR | $2,000 to $25,000 | 585 | As soon as the next business day |
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 View details | 3.99% - 19.99% APR | $5,000 to $100,000 | 660 | As soon as the same business day |
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 View details | 6.99% - 19.99% APR1 | $3,500 to $40,0002 | Many Marcus customers receive funds in as little as five days | 660 (TransUnion FICO®️ Score 9) |
1Rate reduction of 0.25% available for AutoPay. 2You may be required to have some of your funds sent directly to pay off outstanding unsecured debt. 3After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details. |
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 View details | 18.00% - 35.99% APR | $1,500 to $20,000 | None | As soon as the same day, but usually requires a visit to a branch office |
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 View details | 6.49% - 17.99% APR | $600 to $20,000 (depending on loan term) | 670 | 2 to 4 business days after verification |
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 View details | 6.95% - 35.99% APR | $2,000 to $40,000 | 640 | On average, within 5 days of accepting your offer |
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 View details | 5.99% - 18.83% APR | $5,000 to $100,000 | Does not disclose | 3 business days |
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 View details | 6.94% - 35.97% APR | $1,000 to $50,000 | 580 | Within a day of clearing necessary verifications |
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 View details | 8.13% - 35.99% APR4 | $1,000 to $50,0005 | 580 | As soon as 1 - 3 business days6 |
4The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 15% and 36 monthly payments of $33 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. 5This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website. 6If you accept your loan by 5pm EST (not including weekends or holidays), loan funds will be sent to your designated bank account on the next business day, provided that such funds are not being used to directly pay off credit cards. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law. |
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What is an auto repair loan?
An auto repair loan is generally any loan that can be used to cover car repairs. A personal loan, for example, could be a good auto repair loan option — especially since you might be able to get one relatively quickly compared to other types of loans.
Here are a few perks to keep in mind:
- No collateral required: Most personal loans are unsecured, which means you won’t have to worry about losing your assets if you can’t make your payments.
- Funds come in a lump sum: If you’re approved, you’ll receive the funds as a lump sum that you can use for your auto repairs.
- Typically fast funding: The time to fund for a personal loan is usually a week or less — though some lenders might get you your money in as little as one business day.
If you decide to take out a personal loan for auto repairs, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
How to apply for an auto repair loan
If you’re ready to apply for an auto repair loan, follow these four steps:
- Shop around and compare lenders: It’s a good idea to consider as many lenders as you can to find a loan that fits your needs. Be sure to compare not only interest rates but also repayment terms and any fees charged by the lender.
- Choose the loan option you like most: Once you’ve compared lenders, pick the loan option that works best for you.
- Fill out the application: You’ll need to complete a full application and submit any required documentation, such as tax returns or pay stubs. Be sure to provide accurate information and get any paperwork back to your lender quickly to streamline the process.
- Get your funds: If you’re approved, you’ll need to sign for the loan so the lender can send you your money.
It’s also a good idea to consider how much a loan will cost you over time. Before you borrow, estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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Auto repair loan frequently asked questions
Here are some answers to frequently asked questions about auto repair loans to help you decide if they’re right for you:
Where can you get an auto repair loan?
There are several types of lenders that offer auto repair loans, including banks, credit unions, and online lenders. Some online lenders even offer same-day funding.
Other options include payday loans, pawn shop loans, and car title loans. However, these sorts of loans should only be used as a last resort, as they typically come with astronomical rates and fees. Generally, using a personal loan for auto repairs is a much less expensive option.
Learn More: Where to Get a Personal Loan
What can an auto repair loan cover?
Auto repair loans can be used to pay for almost anything related to car repairs. For example, you might use an auto repair loan to cover new tires, a transmission replacement, or a broken windshield.
Be sure to borrow only what you need to keep your future costs low. While an auto repair loan could technically be used to pay for upgrades (like fancy rims or a new sound system), keep in mind that you’ll have to pay back however much you borrow along with interest.
Is an auto repair loan better than using a credit card?
This depends on your situation. If you can take advantage of a credit card with a 0% APR offer and are able to pay off your balance by the time this period ends, you won’t have to pay any interest. However, if you’re unable to repay the money in time, you could be stuck with hefty interest charges.
The interest rates on personal loans, on the other hand, are often much lower than what you’ll pay with a credit card. For expensive repairs that could take some time to pay off, a personal loan is likely the better option.
Can you get an auto repair loan with bad credit?
While many personal loan lenders require you to have good or excellent credit, there are some that offer bad and fair credit personal loans.
If you can’t qualify on your own, getting a cosigned personal loan could be another option. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to get approved, having one could get you a lower interest rate than you’d get on your own.
Check Out: No-Credit-Check Personal Loan
What are some alternatives to auto repair loans?
If an auto repair loan doesn’t seem right for you, here are some alternatives to consider:
- Credit card: If you only need to cover a small expense, a credit card could be a good option, especially if you can use one with a 0% APR introductory offer.
- Home equity loan: With a home equity loan, you can access the equity in your home. You’ll get the funds as a lump sum that you can use as you wish. However, unlike a personal loan, a home equity loan can take weeks to process — which makes it a less viable option if you need to make your auto repairs right away. Also keep in mind that if you can’t make your payments, you could lose your home.
- Home equity line of credit (HELOC): A HELOC is another way to tap into your home’s equity. Unlike a home equity loan, a HELOC is a type of revolving credit — you can repeatedly draw on and pay off your credit line, similar to a credit card. Just remember that your home could be at risk if you can’t keep up with your payments.
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