Best Auto Repair Financing: Fix Your Car Fast
Get approved today and get your car back on the road tomorrow
| Lender | User rating | APR | Term | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
6.99% – 35.99% | 36 to 60 months |
$2k – $50k |
580 | ||
|
8.24% – 24.89% (with autopay) | 24 to 84 months |
$5k – $100k |
Not specified | ||
|
18.00% – 35.99% | 24 to 60 months |
$1.5k – $20k |
500 | ||
|
8.74% – 35.49% (with discounts) | 24 to 84 months |
$5k – $100k |
620 | ||
|
7.74% – 35.99% (with discounts) | 24 to 84 months |
$1k – $50k |
580 | ||
|
Up to 36.00% | 3 to 18 months |
$200 – $2.5k |
300 |
Read more about how we made our picks for best auto repair financing.
Loans for auto repair financing at a glance
Best for: Getting approved with fair credit – Best Egg
- APR
- 6.99% – 35.99%
- Accepts credit scores as low as 580
- Payment assistance may be available if you’re experiencing financial hardship
- Offers a special payment plan that helps you get out of debt faster
- Can’t take out a loan with another person to help boost approval odds
- Will keep at least 0.99% – 9.99% out of your loan as an origination fee
You only need fair credit to qualify for Best Egg, although rates may be high. Luckily, Best Egg has a special payment option called Payment Pathways. This plan can help you pay off your loan sooner, with less overall interest.
Best Egg is easier to qualify for than some lenders, but you have to get approved by yourself. Taking out a joint loan with someone who has excellent credit is a common strategy that can help you qualify for a loan. Best Egg doesn’t offer joint loans.
You must meet the requirements below to qualify for a Best Egg loan:
- Citizenship: Be a U.S. citizen or a permanent resident living in the U.S.
- Administrative: Have a personal checking account, email address and physical address
- Residency: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
- Credit score: 580+
Best for: Auto repair financing with no fees – LightStream
- APR
- 8.24% – 24.89%
- No fees whatsoever
- Will beat competitors’ rates
- Can get your loan the same day that you apply
- Only approves good to excellent credit
- Can’t check rates or eligibility without dinging your credit
- Loans start at $5,000, so might not work if unless you have a major car repair
LightStream rewards good credit by offering a lot of perks. You won’t have to worry about any fees with LightStream, which is rare for an online lender. If a competitor offers you a better rate, LightStream will beat it by 0.10 percentage points.
It isn’t easy to qualify for LightStream. It requires at least good credit and you can’t check rates without a hard credit pull. You also can’t change your due date. You won’t have a late fee for paying late, but late payments have a big impact on your credit score.
LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
- At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
- Stable income and can handle paying their current debt obligations
- Savings, whether in a bank account, investment account or retirement account
Best for: Bad credit emergency loans – OneMain Financial
- APR
- 18.00% – 35.99%
- Only need a 500 credit score
- Can get your money within an hour after closing on your loan
- 1,300+ physical locations if you want in-person help
- High rates and expensive fees
- Paying your loan off early might not save you money
- Bigger loans might require your car as collateral (which may not work if yours is broken down)
If you need a bad credit emergency loan, check out OneMain Financial. You could get your money in as little as an hour as long as you have a bank-issued debit card. This is rare — it usually takes at least a day to get a loan with bad credit (the lender has more to review).
OneMain Financial’s is a bad credit lender, and its high rates and fees show it. OneMain also calculates interest in a way that stops you from saving much on interest if you pay ahead.
OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify even with a credit score as low as 500. Before closing on a loan, you may be required to provide:
- Government-issued identification (such as a driver’s license or passport)
- Proof of residence (such as a rental agreement or utility bill)
- Proof of income (such as pay stubs or tax returns)
OneMain loans are not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or in U.S. territories.
Best for: Same-day loans if you have good credit – SoFi
- APR (with discounts)
- 8.74% – 35.49%
- Can get your money the same day that you apply
- Extra perks like free financial planning
- Customer service available seven days a week through phone and live chat
- Won’t qualify with bad credit
- May ask for an origination fee if you want the lowest rate
- Must borrow at least $5,000
As long as you e-sign your documents before 5:30 p.m. ET on a business day, chances are you’ll get a same-day loan. As a bonus, your loan will come with a free 30-minute consultation with a financial planner. This can be especially helpful if you weren’t expecting your car repair (and loan).
SoFi’s origination fee is optional, but you might have to pay one to get the lowest rate available. Origination fees make your loan more expensive, so there’s no guarantee that you’ll save money by paying one. Ask for offers that do and don’t include the fee and compare overall interest.
You must meet the requirements below to get a loan from SoFi:
- Age: Be the age of majority in your state (typically 18)
- Citizenship: Be a U.S. citizen, an eligible permanent resident or a nonpermanent resident (a recipient of the Deferred Action for Childhood Arrivals — DACA — program or asylum-seeker, for instance)
- Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
- Credit score: 620+
Best for: Mid-cost car repairs – Upgrade
- APR
- 7.74% – 35.99%
- Loans start at $1,000
- Don’t need perfect credit to qualify
- Can add a second person to your loan to help get approved
- Every loan gets an origination fee
The key to using personal loans responsibly is only borrowing what you need. Otherwise, you’ll take on unnecessary debt and interest. Loans available through lending platform Upgrade start at $1,000. You can qualify with fair credit and if you need a boost, consider adding a co-borrower.
Be sure to account for an origination fee if you go with Upgrade. Some lenders only charge origination fees if you have lower credit. Upgrade charges them on every loan.
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best for: Small auto repair loans – Upstart’s Short-Term Relief Loan
- APR
- Up to 36.00%
- Can borrow as little as $200
- Accepts 300+ credit scores, so could be a great alternative to a payday loan
- As long as you pay on time, you can get up to five extra months to pay back what you owe
- Won’t make sense for larger car repairs, since loans cap at $2,500
- Doesn’t specify a starting APR, so you can’t easily tell if Upstart will be cheap for you
- Not available in all states
If you think your only option is a payday loan, look into a short-term relief loan with lending platform Upstart. At 300, Upstart has one of the lowest credit score minimums around. Loans start at $200, but unlike a payday loan, you have a minimum of three months to repay. You usually only have two weeks with payday loans.
Upstart also has a much lower annual percentage rate (APR) than payday loans — which are typically triple-digit. But you’ll need to prequalify to see if this loan is right for you if you have solid credit. You may have cheaper options with other lenders, although note that most personal loans start at $1,000.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Upstart’s Short-Term Relief Loan is not available in the District of Columbia, Colorado, Connecticut, Georgia, Hawaii, Iowa, Maine, Maryland, Massachusetts, Nevada, New York, Vermont, West Virginia or Wisconsin.
What is auto repair financing?
If you’re looking to fix your car and spread the cost over time, you need auto repair financing. There are a few different types of auto repair financing, but this article mostly focuses on auto repair loans, a type of personal loan.
A personal loan comes as a lump sum of cash, usually by direct deposit and sometimes the same day that you apply. You’ll pay off what you borrowed over time (usually 12 to 84 months), and your monthly payment will always be the same.
Auto repair loans pros and cons
Pros
- Interest rates are usually lower than credit cards if you have excellent credit
- Applications are quick, easy and usually entirely online
- Can be easier to budget since payments are always the same
Cons
- High interest rates for bad credit (although you still might be approved)
- Some loans come with an origination fee
- Won’t come with a 0% APR period or rewards like with some cards
An auto repair loan is usually a better choice than a standard credit card — as long as you have excellent credit.
If you have a credit score between 740-799, you could expect an average rate of 14.74%, according to LendingTree marketplace data. Credit cards, on the other hand, have a current average rate of 23.96%.
If you have bad credit, you can still get an auto repair loan, but be prepared for high rates. Also, the worse your credit, the more likely it is you’ll have an origination fee. This is an amount the lender will deduct from your loan before sending it to you.
Always use a personal loan calculator to see if the overall cost of the loan is worth it.
How to find auto repair financing with LendingTree
Shopping around for an auto repair loan on LendingTree can save you $1,659 on average. That’s huge — the average car repair bill is $838 according to Kelly Blue Book (KBB). Here’s how it works.
Tell us what you need
Take two minutes to answer questions about you and the money you need. We’ll take care of the rest. It’s free, simple and secure.
Shop your offers
LendingTree users who get at least one offer receive 20 personal loan offers on average. Compare your offers side by side to get the best deal.
Get paid in as little as 24 hours
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
Alternatives to auto repair loans
| Type of financing | What it is | Why we like it | Why we don’t like it |
|---|---|---|---|
| 0% APR credit card | A card that offers a zero-interest promo period (usually six to 21 months) |
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| Rewards credit card | A card that lets you rack up cash back or airline miles |
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| Buy now, pay later | Apps that let you split purchases into payments, usually four over six weeks (including one down payment) |
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| Paycheck advance app | An app that lets you access your money before payday |
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| Repair shop financing | A branded credit card offered by your repair shop (Goodyear and Firestone, for instance) |
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How to decide if it’s worth fixing your car
You should decide if the repair is worth it before fixing an older car. It might make more sense to buy a new car, but it depends on how much your car is currently worth and how much life it has left.
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Get car repair estimates
Find some repair shops with good reviews. Word of mouth is best — consider asking a local Facebook group. Then, get two or three repair estimates. -
Find your car’s value
Use KBB and Edmunds to get an idea of how much your car is worth, minus depreciation. For the most accurate results, provide your vehicle identification number (VIN) and be honest about the car’s condition. -
Compare cost to value
If the car costs more to fix than it’s worth, fixing it won’t make sense. Other than that, it’s up to you to decide if repairs are worth it. Has your car been falling apart for a while? Don’t sink money into a car that will continue to give you trouble. -
Check auto loan rates
The average rate for a new car loan is 6.56%, according to Experian. For used cars, it’s 11.40%. If you have good credit, the peace of mind that comes with a reliable ride might be worth the car payment.
3 ways to get approved for auto repair financing with bad credit
Add a co-borrower
Getting a joint loan with another person can help if you have bad credit. It’s best if your co-borrower has excellent credit. Missed payments affect their score as well as yours, so stay true to your payment schedule to avoid tension.
Offer collateral
Secured loans need collateral and are generally easier to qualify for. Lenders probably won’t accept your broken-down car as collateral due to its reduced value. But some lenders — like Best Egg and Upgrade — let you use your home’s fixtures. Banks or credit unions might let you borrow against your savings.
Use a loan marketplace
When you shop for new car insurance, you probably contact multiple companies for quotes. You should do the same for loans since — lender has a different way to calculate rates. Get access to our exclusive lender network and let LendingTree do the shopping for you.
Avoiding predatory auto repair financing
If possible, skip loans with APRs above 36%. You should also have at least a few months to pay back what you borrowed. Otherwise, you could be at risk for predatory lending.
Payday loans: Payday loans usually have triple-digit APRs, and your entire loan will be due on your next payday, usually by autopay. If the money isn’t there when the payday lender attempts the withdrawal, expect fees from your bank and the lender.
Title loans: A title loan uses your car as collateral. So do some personal loans. But title loans usually have extremely high interest and repayment terms between 15 and 30 days. Most people end up getting a second title loan to pay the first to avoid getting their car repossessed.
High-interest installment loans: A high-interest installment loan is a personal loan, but with super-high rates and shorter repayment terms. Tribal loans are an example, which can carry APRs as high as 800%.
How we chose the best auto repair loans
We reviewed more than 40 lenders and loan marketplaces to determine the overall best six car repair loans. To make this list, the company must offer competitive APRs.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our standardized rating system, the best auto repair loans come from: Best Egg, LightStream, OneMain Financial, SoFi, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
No, your car insurance typically won’t pay if your car breaks down due to wear and tear or a manufacturer defect. Instead, car insurance pays out if your car is involved in an accident.
There are some rare times when insurance may pay for breakdowns, but it requires extra coverage. For instance, you could be covered if you had a Geico policy with mechanical breakdown insurance. Breakdown coverage is rare and only offered by a few companies.
If you can’t afford to pay for car repairs, you have a few finance options:
- Auto repair loan: Best if you have 670+ credit, but can qualify with a lower score
- 0% APR card: Best if you can pay off your balance quickly
- Rewards card: Best if you plan on needing more repairs in the future
- Buy now, pay later: Best if you can pay in four installments
- Paycheck advance app: Best if you have bad credit and have a small emergency car repair
- Repair shop financing: Best if the repair shop offers 0% special financing or discounts
Yes, you can use Affirm for car repairs. It’ll be easier if the repair shop is an Affirm partner but if it’s not, you can create a virtual card. You can use an Affirm virtual card anywhere that accepts Visa.