Need Car Repairs and Short on Cash?Alison Beard
Sometimes, unexpected and unpleasant events occur. This can range from a variety of issues such as health problems or requiring vehicle repairs. Many people require their vehicle to get to work or their kids to school, so not having a vehicle in good working condition can be very unpleasant.
These situations can be worsened if one does not have the funds in order to finance these unexpected events. Although it is recommended to have savings for these emergencies, this is not always possible. One could be short on cash due to other obligations, such as car payments and utility bills, or other emergencies that have previously occurred. Luckily, there are solutions available.
What is a Vehicle Repair Loan?
A vehicle repair loan is a viable option for individuals that need car repairs but do not have the cash to finance it. A money lender will finance the repairs and the individual acquiring the loan will make monthly or biweekly payments in order to settle the debt. This is very beneficial for individuals that do not have an abundance of readily available cash. This is because the debt is paid off over time instead of having to make one large payment.
Another advantage with vehicle repair loans is that many lenders have good relations with mechanics or auto body workers, and can set you up with cost-effective and quality vehicle repairs.
How Does a Vehicle Repair Loan Work?
A vehicle repair loan is quite similar to other loans, such as personal loans or title loans. The main difference is that the money will be sent directly to the individual completing the repairs, such as the mechanic or auto body worker. Once the repairs have been completed, an invoice will be sent. This invoice will then be paid in full by the money lender.
In order to secure the loan, a lien will be placed on your vehicle. However, the lien does not affect how you use your vehicle, as you can still keep and drive it as usual. All the lien does is secure the loan. Once the loan has been repaid, the lien will immediately be removed.
Requirements for Vehicle Repair Loan
The only requirement for a vehicle repair loan is to have a vehicle that requires repairs. The repairs must be necessary, such as repairs to the engine or to repair damage from a collision. Things that merely enhance the appearance of the vehicle, such as new rims or unnecessary paint jobs, are not covered under vehicle repair loans. The repairs must also be completed by a licensed repair shop.
Unlike other vehicle loans, such as title loans, the vehicle can be financed or leased. It does not matter if there are any previous liens on the vehicle, you can still be eligible for a repair loan as long as necessary repairs are needed.
Additionally, credit scores are not considered by money lenders for repair loans. It does not matter if you have bad credit or no credit, you can still be eligible for a repair loan. Employment history is also not a factor for repair loans. Whether you are unemployed, on disability income, or self-employed, you can still be eligible for a repair loan. This is because the lien secures the loan, so credit scores and employment history is irrelevant when applying for the loan.
How to Apply
Many lenders, such as Fast Action Finance, make the whole loan process very simple and straight-forward. This includes applying for the loan, receiving the loan, and making payments. Often, there are online applications to fill out and a loan representative will contact you in a timely fashion. Alternatively, you can call the lender directly and give basic information over the phone. This information includes the make and model of the car, and what repairs are needed. After you have been approved, you can discuss your situation with the money lender and come up with a payment plan that is feasible.