If your car has been in an accident or has broken down and you don’t have insurance or the cash on hand to pay for repairs, chances are you’ll need to borrow the money so you can get back on the road.
In this article, we’ll cover some options for getting the money you need and some tips on how to get a Car Repair Loan.
Do You Have a Good Credit Rating?
When it comes to Car Repair Loans, Australia has a lot of lenders who could potentially help you out. One thing they all have in common is they’ll need to check your credit history before they approve a loan application.
What’s your credit rating like? Do you have any history of repaying a loan or credit card?
If you don’t have a perfect credit score, it’s going to make it extremely difficult to get a loan from a bank. In this case, you might be better off seeing if you can borrow the money you need from a family member or a friend.
Is All Your Documentation Ready To Go?
No matter who you approach for finance to get your broken down car repaired, some documentation will be required. You’ll need to be able to prove your identity for a start, with several pieces of government-issued photo ID.
Banks will require you to include payslips with your loan application so they can determine if you earn enough to cover the repayments. If you’re self-employed, you might need to present financial details from your accountant.
It’s important you have the necessary documents ready, because if you don’t, it’ll slow up the application and approval process. If the bank has to keep asking for documents, the process could take weeks.
Have a Plan For Repaying the Loan
Regardless of the documents you give the lender regarding your financial capacity, you still need to have a plan to repay that Car Repair Loan. Technically, you might earn enough to cover the repayments, but what happens if your circumstances change, or your expenses increase?
You’ll need to have a contingency plan in place in the event of unforeseen circumstances. One way to safeguard yourself would be to put a little extra money away that you’ll reserve for repaying the loan if your financial situation unexpectedly changes.
Try a Private Lender For a Car Repair Loan
There are a number of advantages to choosing a private lender for your car repair finance. One of the key advantages is you can get the money fast, even the same day you apply. So, if you really need the money quickly so you can get your car back on the road sooner, a private lender is a top option worth looking into.
Other points to note include the fact that you don’t need a lot of paperwork, loans can be tailored to your individual circumstances, interest rates are generally very fair and you can do the loan application entirely online.
Another Option To Get Your Car Repaired
You could work out a deal with the mechanic if you don’t have the full amount to cover the cost of repairs. Perhaps you could do a contra-deal?
This is where you swap services. The mechanic agrees to repair your car while you return the favour by doing something the mechanic needs. Maybe you’re an accountant and he needs his tax done? You could swap services.
There are always ways to come up with money when you need it. Just think outside the square a little and don’t be afraid to ask for advice.