If your credit score is under 580, that is considered well below the average of U.S. consumers and it can make it more difficult to get an affordable short-term loan for any reason. But when your car breaks down, you may need money for repairs. Fortunately, you do have options for low-cost emergency car repair loans even if your credit isn’t perfect.
Need to repair your car for unexpected reasons?
Before you take out a loan, try to figure out what’s wrong with your vehicle. The information below can help you troubleshoot the problem, fix it yourself, or find car repairing services in your area.
Can you repair your car yourself?
Depending on the reason your car needs repairs, you may be able to do a quick fix yourself. That said, it may not be a good idea to take on projects that are beyond your skill set.
How to find a repair shop
If you search online and you are not sure what shop would be best for your situation, ask your friends and family for mechanic recommendations. Some garages even give friend-and-family discounts, so be sure to mention their names when you get a quote!
5 funding options for emergency car repair costs
Once you’re sure a visit to the mechanic is in order, it’s time to review your emergency car repair assistance options.
Save up money to avoid getting a loan
If your vehicle still runs safely, you could try finding part-time work so you can pay for the repairs in cash. In doing so, you can avoid interest payments that come with putting repairs on a credit card or taking out a loan.
Find a loan that helps build credit
If you have to take out a loan for an emergency car repair, consider getting one that does double-duty. Credit builder loans are designed to help people with no or bad credit. You’ll make payments, earn interest, and once the term of the loan ends, you’ll have access to all the funds. Your payment history will be reported to the credit bureaus. If you make your payments on time, that can help improve your credit score. At MoneyLion, we offer Credit Builder Plus to help you build or improve your credit. If you become a Credit Builder member, you will unlock all of this for $19.99/month:
Credit Builder loan up to $1,000 with a competitive APR
Credit reporting to all three credit bureaus to help build your positive payment history
Credit monitoring and weekly updates on your credit score and credit factors
0% APR Instacash cash advances up to $300.
Ask a family member or friend for a loan
Your friends and family may also be willing to offer car repair financial assistance. That said, you don’t want to ruin your good relationships, so be sure to come up with a payment plan and stick to it. You may even offer to pay a little interest on top of the loan to sweeten the deal.
Government emergency car repair assistance
Believe it or not, welfare car vouchers do exist, though they’re typically reserved for Temporary Assistance for Needy Families, or TANF, recipients. Low-income applicants who are pregnant or caring for a child and need their vehicle to get to work may qualify.
FAQs
What happens if you can’t afford to pay a mechanic?
Some mechanics will let you negotiate your repair bill or pay in installment plans to lower the cost. Before making the appointment, it is a good idea to ask about payment arrangements. But if you really can’t afford your car repairs, you may qualify for grants or will have to ask your family, friends, or a bank for a loan.
Can you get a loan to pay for car repairs?
Some lenders advertise loans specifically to cover car repairs. But you don’t need a specialty car loan – not when you can take out a competitive-rate Credit Builder loan from MoneyLion to cover your costs!
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Disclosures
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, MoneyLion does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information. For more information about MoneyLion, please visit https://www.moneylion.com/terms-and-conditions/.
Credit Builder Plus membership ($19.99/mo) unlocks eligibility for Credit Builder Plus loans and other exclusive services. A soft credit pull will be conducted which has no impact to your credit score. Credit Builder Plus loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are made by either exempt or state-licensed subsidiaries of MoneyLion Inc., and require a loan payment in addition to the membership payment. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account maintained by ML Wealth LLC and held by DriveWealth LLC, member SIPC, and FINRA. The funds in this account will be placed into money market and/or cash sweep vehicles, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states.
Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
Credit score improvement is not guaranteed. A soft credit pull will be conducted that has no impact to your credit score. Credit scores are independently determined by credit bureaus. Data was sourced from credit score data from over 147,500 Credit Builder Plus members with an active loan between January 1, 2020, and March 15, 2023. Credit score improvement is not guaranteed. Credit scores are independently determined by credit bureaus. MoneyLion is not a Credit Services Organization. Credit Builder Plus is an optional service offered by MoneyLion.
Instacash® is an optional service offered by MoneyLion. Your available Instacash Advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors, as determined by MoneyLion. Expedited delivery requires Turbo Fee. See Instacash Terms and Conditions for more information and eligibility requirements.