How Do I Choose a Personal Loan for Car Repairs
                     How Do I Choose a  
Personal Loan for  
Car   Repairs?
PRESENTED BY LEVEL 
FINANCING

Briefl y 
Described
Main 
When you own a car, repair costs are inevitable at one point 
or  another. BasedT ono repcenitc stasts, each vehicle needs an  
unscheduled repair once every two years, and the average 
auto  repair costs amount to $652.
While some have enough available funds in their bank account,  
others may not have the proper financial resources, or at least 
not  in full. This is especially true for emergency car repair 
situations  for which you cannot budget in advance. In these 
situations,  taking  out a personal loan is typically one of the 
most effective  ways to cover the costs of car repairs.
When taking out a personal installment 
loan  for car repair financing , the first 
thing  you  need to know is how much you 
are going to  borrow. This is equal to the 
total repair cost  minus whatever 
available cash you may  already have.
Many car repair chains, like Repair Pal or 
Your  Mechanic, offer free online tools 
where you  can enter your location, vehicle 
information,  and the type of repair or 
service you need  and obtain an estimate 
of the cost.
There are numerous elements to consider when applying for 
a  personal loan. Here are the most important ones to 
consider.
Interest rate –  It refers to the cost of borrowing money, usually  
expressed as a percentage. It can be fixed, meaning that it 
remains  constant over the duration of the loan, or variable, 
meaning  that it  can change depending  on market conditions. 
How much you will  pay interest depends on several factors that 
we will cover in the  next section.
Loan amount –  As pointed out earlier, your loan amount should  
match the cost of your car repairs minus the cash you already 
have  available.
Other fees –  In addition to paying interest on 
 your loan, there are also fees involved. 
These  include the loan’s orig ination fee, late 
payment  charges, and other transfer fees. 
Make sure to  check every tiny detail before 
you sign the loan  agreement.
Repayment term –  It refers to the loan length, 
 that is, the time you have to pay back the 
loan.  Generally, borrowers who require a 
more  considerable loan amount and can 
make regular  payments should opt for a 
longer loan period.
Lenders use a number of criteria to determine whether to accept 
an  unsecured loan application, the maximum amount you can 
borrow  and the interest rate you’ll have to pay. Here is the most 
important  one.
Your credit score –  It refers to a three-digit number ranging from  
300 to 850 that reflects your credit history and how willing you are 
to  take on new debt. Generally, the better your score is, the more  
favorable terms you will be offered.
Your employment situation –  Lenders want to ensure you have an 
 income that allows you to repay the loan. That is why they usually 
ask  for proof of employment or any other stable source of 
income.
Your debt-to-income ratio –  It’s a measure of  
how much you have to pay on debt in 
comparison  to your income. Banks generally 
use your debt-  to-income ratio to indicate 
your ability to make  timely payments. The 
lower this indicator, the  better. Overall, it 
would be best if you kept it  below 43%
Your repayment history –  Also known as your  
credit report, it’s a record of how you’ve  
managed your past loans and debts. Lenders 
will  carefully review it to assess the risk of 
lending  you money.
All the previously mentioned criteria being equal, different 
lenders  offer different rates, terms, and conditions.
For example, if your credit score could be better, some banks 
may  decline your application, others may set a lower maximum 
amount,  and others may still offer a higher interest rate.
It’s essential to do your research and compare different offers 
in  order to select the best option according  to your needs.
To help you in this process, you can use online comparison tools 
that  allow you to compare different loan providers side by side, 
taking  into account all of the aforementioned criteria.
Credit card –  If you are already a credit card  
holder, and you are confident you can pay 
the  outstanding  balance before the end of 
the  month (thus avoiding being charged an 
interest  rate), then you should go for this 
option.
Typically, using your credit card if you can’t  
repay the outstanding  balance at the end of 
the  month is not advisable, as the interest 
rate  charged by credit card providers is 
usually  higher than that charged by personal 
loan  providers. At the same time, a credit 
card can be  a last resort if no private loan 
provider accepts  your application.
T h an k  
you !
Learn more at
https://levelfinancing.com/personal-loan-for-car-
 
 repairs/