Best Auto Repair Financing in 2024

Funds to help with car repairs

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Written by Tara Mastroeni | Edited by Kurt Adams and Xiomara Martinez-White | Reviewed July 19, 2024

Auto repair financing lenders at a glance

Best for borrowers with strong credit scores

8.99% - 35.99%

$2,000 - $50,000

24 to 60 months

1.00% - 9.99%

560

Pros

  • Low minimum APR
  • Wide range of loan amounts
  • Allows for co-borrowers

Cons

  • Higher maximum APR
  • Charges an origination fee

What to know

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If you have a good or excellent credit score, it may be worth looking into Prosper for auto repair financing. The company offers a low minimum APR of just 8.99% — plus, it has a wide variety of loan amounts and loan terms, which add flexibility when borrowing. That said, if you have a lower score, it may be difficult to qualify — and even if you do, you could see higher interest rates.

Read our full Prosper personal loan review.

How to qualify

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Applicants and any co-borrowers must be U.S. citizens and have a credit score of at least 560. They must also be able to provide a Social Security number and possess a personal bank account.

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Best for borrowers who need larger loan amounts

8.99% - 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

$5,000 - $100,000

24 to 84 months

0.00% - 7.00% (optional)

680

Pros

  • Loan amounts up to $100,000
  • Same-day funding available
  • APR discounts for autopay and direct deposit

Cons

  • Higher minimum credit score requirement
  • Minimum loan amount may be higher in some states

What to know

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If you qualify, SoFi can offer you up to $100,000 in funds as soon as the same day you apply. Plus, this lender doesn’t require an origination fee and offers loan terms up to seven years, which can help make your monthly payments lower. Still, you’ll need a credit score of at least 680 to apply, meaning that SoFi may not be the best option if you have a lower credit score.

Read our full SoFi personal loan review.

How to qualify

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In order to borrow from SoFi, you must have U.S. citizenship, permanent residency or a USCIS number. You must also be able to provide proof of your citizenship status.

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Best for borrowers with bad credit

7.80% - 35.99%

$1,000 - $50,000

36 or 60 months

0.00% - 12.00%

300

Pros

  • Low minimum credit score requirement
  • Low minimum APR
  • Small loan amounts available

Cons

  • Potentially high origination fee
  • Low borrowing cap
  • Shorter loan terms

What to know

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Getting a personal loan with bad credit may be tougher — but it’s not impossible. Since Upstart accepts credit scores as low as 300, it’s our best pick for bad credit loans. Still, the borrowing cap is somewhat low compared to other lenders, so it may not be the best fit if your car repair has a big price tag. Further, Upstart’s origination fee can get quite steep, at up to 12%.

Read our full Upstart personal loan review.

How to qualify

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Upstart is fairly transparent about its eligibility requirements. In order to qualify for a personal loan through the company, you’ll need to be a U.S. citizen and provide a verifiable Social Security number. You’ll also need to provide your address and prove an income of at least $12,000 per year. However, you may not reside in Iowa or West Virginia.

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Best for borrowers who need same-day funding

9.116% - 29.99% (with autopay)

$2,000 - $45,000

36 or 60 months

Up to 9.00%

640

Pros

  • Same-day funding available
  • Autopay discount available
  • Relatively low minimum APR

Cons

  • Higher origination fee
  • Lower borrowing cap
  • Not available in all states

What to know

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As long as you’re able to get your loan application submitted to Rocket Loans by 1:00 p.m. ET on a business day, you could be eligible for same-day funding. If that’s something you need, this company could be a good option. It has a relatively low minimum annual percentage rate (APR) and offers an autopay discount. Unfortunately, though, these loans aren’t available in Nevada, Iowa or West Virginia — plus, the origination fee may be as high as 9.00%.

Read our full Rocket Loans personal loan review.

How to qualify

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You will need a credit score of at least 640 to qualify for a loan with Rocket Loans, and you have to be a U.S. resident residing in a state other than Iowa, Nevada or West Virginia. However, beyond that Rocket Loans simply says that your credit score, income and existing debts will be evaluated.

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Best for borrowers who only need small loan amounts

7.99% - 24.99%

$2,500 - $40,000

36 to 84 months

None

720

Pros

  • No origination fee
  • Relatively low minimum APR
  • Longer loan terms available

Cons

  • Doesn’t allow cosigners
  • Lower borrowing cap
  • Higher minimum credit score

What to know

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Since the maximum loan amount you can borrow from Discover is only $40,000, it’s our top choice for borrowers who only need small loans. So if your auto repair fits that bill, Discover could be an affordable choice. Its low minimum APR, lack of an origination fee and longer loan terms can help make it easier to afford your monthly payments. However, cosigners aren’t allowed and you won’t be able to borrow as much as you might with other lenders.

Read our full Discover personal loan review.

How to qualify

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In order to qualify for a Discover loan, you’ll need to be a U.S. citizen or permanent resident with a permanent address. You’ll also need to have a working email address for the application process and be able to prove that you make at least $25,000 per year.

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Best for borrowers who want prequalification

7.99% - 35.99%

$2,000 - $50,000

36 to 60 months

0.99% - 9.99%

600

Pros

  • Next-day funding available
  • Relatively low minimum APR
  • Prequalification available

Cons

  • Higher origination fee
  • Higher minimum credit score requirement
  • Cosigners not allowed

What to know

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One of the standout features of Best Egg is that they allow for personal loan prequalification, which allows you to see if you might qualify without harming your credit score. They also have a relatively low minimum APR, which can help keep funding affordable. Yet, at the same time, their origination fee is on the higher end and personal loans with cosigners aren’t allowed.

Read our full Best Egg personal loan review.

How to qualify

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Unfortunately, Best Egg loans are unavailable in Iowa, Vermont, West Virginia, Washington D.C. or any U.S. territories. But, if you do live in a state where loans are accessible, you’ll need to be a U.S. citizen or permanent resident with a physical address, a valid email and a working checking account to qualify.

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Best for borrowers who need longer loan terms

6.99% - 25.49% (with autopay)

$5,000 - $100,000

24 to 84 months

None

Not specified

Pros

  • Longer loan terms available
  • Large loan amounts available
  • No origination fee

Cons

  • Doesn’t specify minimum credit score requirements
  • Higher minimum loan amount
  • No option to prequalify

What to know

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With loan terms of 24 to 84 months, LightStream may be a solid option for those who need more time to pay back their auto repair financing. Since the company allows you to borrow up to $100,000, its loan amounts are particularly flexible. That said, LightStream isn’t very upfront about its eligibility requirements, which can make it hard to tell if you qualify. Plus, it has a higher minimum loan amount, meaning it may not be the best fit for those who only need to borrow a smaller amount.

Read our full LightStream personal loan review.

How to qualify

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LightStream is fairly vague when it comes to disclosing its eligibility requirements. For one, the company doesn’t disclose a minimum credit score, but does specify that only those with “good-to excellent” credit profiles will be approved. In addition, the company will also take into account your credit history, payment history, debt-to-income ratio and assets.

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Best for borrowers who are interested in applying with a co-borrower

8.99% - 17.99%

$600 - $50,000

12 to 60 months

None

Not specified

Pros

  • Low minimum loan amount
  • Co-borrowers allowed
  • Lower maximum APR

Cons

  • Minimum required monthly payment of $50
  • Must be a member of the credit union to receive loan funds

What to know

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If you’re looking to submit a joint personal loan application for your auto repair financing, consider PenFed Credit Union — it’s one of the few lenders that allows this type of borrowing. Plus, the company boasts a low minimum loan amount and low maximum APR, which can help keep borrowing affordable. However, be aware that you’ll need to be a member of the credit union in order to receive your loan funds.

Read our full PenFed Credit Union personal loan review.

How to qualify

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PenFed Credit Union chooses not to disclose many of its eligibility requirements. However, you may be asked to verify your identity, input information about your employment and annual income and disclose your reason for needing funding as part of the application process.

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What is auto repair financing?

Auto repair financing refers to any type of loan used to pay for necessary repairs to a car or another kind of vehicle. While loans specifically meant to cover auto repairs are few and far between, most personal loans can be used for this purpose.

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How to compare auto repair financing

Before choosing a place to get a personal loan, it’s a good idea to shop around. Obtaining quotes from a few different lenders is the best way to make sure you end up with a loan that suits your needs. However, you’ll want to remember to provide the same information for each quote, so you can be confident that you’re making an apples-to-apples comparison.

Here are a few metrics to compare in your evaluation:

APRs: Annual percentage rates (APRs) can play a huge role in determining how much you pay over the life of the loan, so it’s important to pay close attention to this one. APR includes your interest rate, plus any fees.

Fees: Personal loan lenders commonly charge a few fees, including origination fees, late fees and returned payment fees. Watch out for a potential prepayment penalty fee, a charge for paying off your loan early. Fortunately, most lenders no longer charge this fee.

Terms: Your loan term — the length of the loan — will also impact how much you spend on funding. In general, longer loan terms come with lower monthly payments, but you’ll pay more in interest charges over time. On the other hand, shorter terms come with higher monthly payments, but you’ll pay less in interest overall. As a rule of thumb, it’s a good idea to go with the shortest loan term whose monthly payment you can still comfortably afford.

Funding timeline: How long does it take to get a personal loan? That depends on the lender. Some can disburse funds as soon as the same business day, while for others it can sometimes take a few business days. Whenever possible, it’s smart to leave a little lag time between when you apply for a loan and when you need to receive the funds.

  Use our personal loan calculator to understand the true cost of your loan, considering interest.

Unique perks: Does the lender offer any unique perks that could benefit you, like an autopay discount or the ability to manage your loan through an app? If so, those should be weighed alongside the other factors when making a decision on your auto repair financing loan.

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How to apply for auto repair financing

Now that you have a better idea of how to compare auto repair loan quotes, here’s a closer look at how to apply for this type of financing.

1. Check your credit score

Checking your credit score before applying for a loan can help you get a better idea of how likely you are to be approved, as well as what sort of interest rate you’ll likely receive. If your score is on the lower end, it may be a good idea to work on improving your credit score before you take the plunge.

2. Shop around for a loan

Once you have a better idea of where you stand, it’s a good idea to shop around for a loan. As mentioned above, shopping around involves comparing rates and terms, so you can decide on the loan that best fits you. It’s a good idea to compare three or more quotes before making your final decision.

Unfortunately, not all lenders allow you to prequalify for a loan. Some will require a hard pull on your credit report to determine eligibility, so you may want to keep this in mind when picking lenders to get quotes. Still, be aware that prequalification is not the same as loan approval: You may not receive the exact same rates or fees when you actually apply.

3. Apply for a loan

After selecting the best quote, you’ll need to apply for your personal loan. Every lender’s application process is different, but most will want you to verify your identity, employment information and income. You’ll likely need to submit some supporting documentation, such as a government-issued ID, W-2 and pay stub, along with your loan application.

Further, applying for a personal loan often comes with a hard pull on your credit report. This can temporarily cause your credit score to drop by a few points, so you’ll want to consider your applications carefully. As a general rule, it’s a good idea to only apply for one loan at a time.

4. Close on the loan

Once your lender approves you for a loan, it’s time to sign a personal loan agreement. After you sign on the dotted line, the funds will be disbursed, usually by either direct deposit or check.

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How we chose the best auto repair financing

We reviewed more than 25 lenders to determine the overall best eight auto repair financing loans. To make our list, lenders must offer loans with competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide unique perks to customers, like autopay discounts.

Frequently asked questions

Yes, you can get financing for an auto repair. Although specific auto repair financing loans are few and far between, most personal loans can be used to fund vehicle repairs.

Yes, you can get financing for an auto repair even if you have bad credit. Some lenders on our list accept applicants with lower credit scores — however, typical requirements can vary. You may want to consider our list of the best bad credit loans for more options.

It’s possible to pay for auto repairs in installments by getting a personal loan. Once you do, you’ll be able to make fixed, monthly payments on the amount that you’ve borrowed.