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14 Auto Repair Loans: Find Car Repair Financing Fast

Depending on the lender, you could get a personal loan for auto repairs as soon as the same day.

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By Lindsay VanSomeren

Written by

Lindsay VanSomeren

Writer

Lindsay VanSomeren specializes in credit and loans. Her work has appeared on Credit Karma, Forbes Advisor, LendingTree, and more.

Edited by Meredith Mangan

Written by

Meredith Mangan

Senior Editor

Meredith Mangan is Credible's Senior Editor for Personal Loans. Since 2011, she’s helped steer content creation in the areas of mortgages and loans, insurance, credit cards, and investing for major finance verticals, including Investopedia, Money Crashers, and The Balance.

Updated January 31, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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If you’re facing an expensive car repair, an auto repair loan could help you cover it — and you could get the money you need as soon as the same day you apply.

An auto repair loan is typically a personal loan that you use to fix your car. You’ll generally need at least fair credit and verifiable income to qualify, though some lenders offer loans to bad-credit borrowers as well.

14 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:

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4.24.2

Credible rating

Fixed (APR)

7.49% - 25.49%

Loan Amounts

$5000 to $100000

Min. Credit Score

700

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on Credible’s website

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3.93.9

Credible rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

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on Credible’s website

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4.44.4

Credible rating

Fixed (APR)

-

Loan Amounts

$2500 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

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4.64.6

Credible rating

Fixed (APR)

8.49% - 17.99%

Loan Amounts

$600 to $50000

Min. Credit Score

760

Check Rates

on Credible’s website

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4.54.5

Credible rating

Fixed (APR)

8.49% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

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4.94.9

Credible rating

Fixed (APR)

8.99% - 29.99%

Loan Amounts

$5000 to $100000

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

9.57% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

9.95% - 35.99%

Loan Amounts

$2000 to $35000

Min. Credit Score

550

Check Rates

on Credible’s website

View Details

4.34.3

Credible rating

Fixed (APR)

-

Loan Amounts

$5000 to $35000

Min. Credit Score

710

Check Rates

on Credible’s website

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4.34.3

Credible rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

560

Check Rates

on Credible’s website

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3.93.9

Credible rating

Fixed (APR)

11.72% - 17.99%

Loan Amounts

$3000 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

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44

Credible rating

Fixed (APR)

-

Loan Amounts

$20000 to $200000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

3.73.7

Credible rating

Fixed (APR)

14.30% - 35.99%

Loan Amounts

$3500 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

540

Check Rates

on Credible’s website

View Details

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

What is an auto repair loan?

An auto repair loan is typically any loan that can be used to cover car repairs. A personal loan can be quick and easy to get, and generally doesn’t require collateral, which makes it one of the best auto repair loan options.

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 (like your car or home) if you can’t make 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 a personal loan is usually within a few days of loan approval — and some lenders can even get you money the same day.

You’re most likely to be approved for a personal loan with good to excellent credit, and the higher your score, the better rates tend to be. But some lenders offer loans for bad credit, too.

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How to compare auto repair loans

If you decide to take out a personal loan for auto repairs, consider multiple lenders to find the best personal loan for you. Here’s how:

  1. Check your credit: Check your FICO score to get a sense of the personal loan rates you might qualify for, or whether you’ll qualify at all. If your FICO score is considered good, above 670, you’re more likely to be approved for a loan at a reasonable rate.
  2. Know how much you need to borrow: Review the work estimate you got from the mechanic. Do you need to borrow the entire amount, or do you plan to cover some on your own? You may want to consider borrowing more than the estimated amount, since that figure could change. If you do borrow more, be sure to repay what you don’t use as soon as the car is fixed — just make sure your lender doesn’t charge a prepayment penalty (none of these personal loan lenders do).
  3. Understand your budget: How much of a monthly payment can you afford? Once you know this, you can use a personal loan calculator to estimate payments over different repayment periods, or you can start prequalifying with lenders to get a customized estimate of your terms.
  4. Prequalify with multiple lenders: Prequalification doesn’t hurt your credit, and allows you to see the APRs (annual percentage rates), monthly payments, loan amounts, and terms you might qualify for with different lenders. Prequalification is not an offer of credit, and your credit score may drop temporarily by a few points once you apply for the loan.
  5. Compare APRs and loan terms: The APR accounts for the interest rate and upfront fees associated with the loan, which makes it a better measure of cost than interest rate alone. In addition, look for a lender that offers the repayment term you need, that funds within the time frame you need, and, ideally, doesn’t charge an origination fee. An origination fee is often deducted from the loan proceeds, which means you could receive less than the amount you applied for.

You should also know how much a loan will cost over time. Before you borrow, estimate how much you’ll pay for a loan using a personal loan calculator. Plug in different repayment terms to see total interest costs. Note that a longer repayment term often translates to a lower payment, but also means more interest charges over time.

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How to apply for an auto repair loan

If you’re ready to apply for an auto repair loan, follow these steps:

  1. Choose the loan option you like best: Once you’ve compared lender terms, fees, funding times, and APRs, pick the loan option that works best for you.
  2. Fill out the application: You’ll need to complete a full application and submit any required documentation, such as tax returns and pay stubs. Be sure to provide accurate information and get any paperwork back to your lender quickly to streamline the process.
  3. Review the loan agreement: If you’re approved, you’ll need to read through the loan agreement and sign it. Make sure the terms are as expected — in particular, the loan amount, monthly payment, APR, the repayment period, and any fees.
  4. Await your funds: Once you’ve signed, the lender will begin the process of remitting your funds. With some lenders, you could see the money in your account as soon as the same business day. But, generally, you should expect a 2-3 day turnaround.

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FAQ

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. Other options include payday loans, pawn shop loans, and car title loans. However, these loans should only be used as a last resort, as they typically come with astronomical APRs and fees. Generally, using a personal loan for auto repairs is a much less expensive option.

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. But borrow only what you need to keep your future costs low. While an auto repair loan could 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 with interest, which could be thousands of dollars.

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% promotional APR and can pay off the balance within the promotional period, that would be better than most personal loans. However, if you’re unable to repay the money before the rate adjusts, you could be stuck with higher interest charges than you’d face on a personal loan.

The interest rates on personal loans are often lower than what you’ll pay with a credit card. For expensive repairs that could take years 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 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.

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.
  • 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 draw on and pay off your credit line, similar to a credit card.

Note that HELOCs and home equity loans require your home as collateral — if you can’t make payments, you could lose your home.

Loan Amounts:

Meet the expert:
Lindsay VanSomeren

Lindsay VanSomeren specializes in credit and loans. Her work has appeared on Credit Karma, Forbes Advisor, LendingTree, and more.