Can You Get a Loan for Car Repairs?


Benjamin Franklin once famously wrote,”In this world nothing can be said to be certain, except death and taxes”(1). But if you own a several year old car, you can also add “car repair” to that short list. Sometimes, those necessary repairs can be quite costly and buying a new car isn't always the best or cheapest option. So how do you pay to have your car repaired if you don’t have the cash on hand to do it? Getting a loan is one option that not a lot of people think about – but it can be a money saving idea, in the long run, especially if not having transportation could cause you to lose your job.

Different Types of Loans You Can Take Out

There are two main types of loans that you may want to consider: secured loans and lån uden sikkerhed. A secured loan will require some kind of collateral that the bank can claim possession of if you aren't able to make monthly payments and you default. Often, this collateral is a vehicle. The only problem is, if your car isn't worth the amount of the loan you’re trying to take out, it probably won’t be accepted as collateral and you’ll be back to square one. Enter the unsecured loan. Also known as a signature loan, this kind of loan doesn't usually require any collateral. When mulling over what kind of loan you want to try to apply for, look at the value of your car and how much you still owe on it. Once you've decided on the kind of loan you want to take out, it’s time to gather up all your supporting information to bring to your lender of choice.