It’s seems like every time you turn around you are spending money to repair your car. Either it’s the brake pads, tires, or headlights, the little repairs just never seem to stop. But while these repairs are annoying, they are still manageable. But what happens when your transmission fails, and you don’t have the funds to pay?
The good news is that there may be a way to pay for such an expensive car repair, and that is through the use of a loan. With LoanMart, learn about the different types of loans you could obtain to repair your transmission.
A Title Loan Can Cover the Cost of Your Transmission
With a title loan, you may be able to use your car’s title as collateral to get the funds you need for your transmission repair1. With a title loan, the title of the car is used as collateral in exchange for quick funding. The lender may be able to fund you a percentage of what they feel your car is currently worth.
There are several factors that make a title loan a great financing option:
- Your credit score is not an important qualifying factor
- You could receive funds in as little as one business day3
- Title loans are short term loans
- Keep driving your car while making monthly payments
While these are all great reasons as to why title loans are a great option, we would be remiss if we didn’t mention one of the downsides to using a title loan.
Title loans are not available in every state, which makes this option rather limiting. Make sure to do research to see if you could obtain a title loan where you live.
A Personal Loan Can Cover the Cost of Your Transmission
If you don’t wish to put your car’s title up as collateral, then perhaps you should consider getting a personal loan instead. Personal loans are a great option as they allow you to receive a great deal more in funds than most other types of loans, allowing you to pay for your repairs in full.
Personal loans don’t use collateral to secure funds, so you don’t have to worry about losing a valuable asset. But personal loans do generally require decent credit scores and financial history to secure one.
Since personal loans are not collateral based, lenders need to know you are a good bet to lend money to—they use credit scores as a reference. If your credit score is lower than what a lender would like, then chances are you may not be approved for the loan.
With a loan, the time frame in which you receive your funds should be considered. Generally, you can expect to receive personal loan funds within a day, but that may not always be the case. There are times when the approval process is held up and someone is left waiting a week until they can have their transmission repaired.
A Credit Card Can Cover the Cost of Your Transmission
You may not consider credit cards loans, but they allow people to borrow money and pay it back with interest. While using your credit card may not sound ideal for transmission repair, in some circumstances it may be a viable option.
Using your credit card as a loan comes down to your credit score. By having good or excellent credit, using your high credit line to schedule a transmission repair is possible. If you have a good enough credit score, chances are you may be able to obtain low rates.
Though if the interest on your credit card is not ideal, then using your credit card as a loan may not be the best option for you. With high interest rates, you could find yourself paying off the repair costs for years. In addition to the interest, consider the limit of your credit card. If your card has a limit smaller than what your repair cost is, then you will have to split the cost on multiple cards.
LoanMart is a financial company that wants borrowers to remain well informed, that’s why we regularly post informational articles covering a wide range of financial topics.
Know that with LoanMart, the loan amounts, terms, and interest rates will be personalized for your unique financial needs1. The quick inquiry process can be completed in under 5 minutes, and when approved you could potentially receive funds in as little as 24 hours3.
To start the inquiry process, you can call us toll-free at 1-855-277-4847 or send an email to firstname.lastname@example.org.