Not always a person can have money even for everyday needs, not to mention unforeseen situations that can happen to everyone. Such a nuisance as a car breakdown can disrupt all plans because it can be very expensive. In order not to ask relatives and friends for money to repair the car, you can repair the car with the help of urgent auto repair loans now. Thanks to this feature, the borrower:
- quickly resolves the issue with a vehicle breakdown;
- will not ask for money from relatives and friends;
- can be calm about the fact that the car will be repaired immediately and he will be able to immediately go on the planned business.
Banks, MFO (microfinance organization), or installments at car services?
Perhaps, car repair in installments is one of the most attractive options. However, it is worth paying attention to the terms of such an offer: often a regular loan is offered under the guise of an installment plan, and since it is issued through an intermediary – a car service, it comes out more expensive than if you issue it directly at a bank.
The MFO auto repair loans for bad credit give the ability to get the money very quickly. Otherwise, this option has significant disadvantages:
- you will have to transfer the vehicle certificate of title for storage to a microfinance organization;
- interest rate for such auto repair loans no credit check is significantly higher than for standard consumer lending.
If you take the auto repair loans in a bank, you need to be prepared that the consideration of the application can take from one to several days. This is the main disadvantage. However, on the other hand, there are quite tangible advantages:
- complete set of documents for the vehicle remains in your hands;
- low-interest rate for the use of credit money;
- ability to get an inexpensive loan with a simplified package of documents if you are a payroll client of the bank.
How to choose the best auto repair loans?
How to decide whether to take a microloan or a regular consumer loan? Much depends on the terms of the loan itself and the estimated timing of the repair of your car. When deciding which loan to take for car repairs, keep in mind:
- the higher the cost of repairs, the more loan will hit your pocket;
- the longer it is supposed to make repairs, the higher the overpayment will be, especially if the interest on the loan is high;
- if the car brings you money, consider the loan term and lost earnings due to downtime in the calculations. Also, you can search for auto repair loans now reviews to find the most suitable urgent option for you.
When comparing the terms of the microloans and the personal loans for auto repair, note that the interest rate in the first case is usually indicated per day or month, and in the second – per year. For example, in the MFO bad credit auto repair loans agreement it may be written that the rate is 2.5% per month, and in the bank agreement – 10% per annum. To compare both rates, you can recalculate the annual percentage: divide 10% by 12 months and get 0.83% per month. Now it is clear that the no credit check auto repair loans by MFO will cost almost three times more than in a bank. To estimate the amount of overpayment for each of the lending options, multiply the resulting rates by the number of months that you plan to use borrowed money and calculate the percentage of the amount borrowed.