How To Pay For Car Repairs With No Money?


Can you finance car repairs?

The answer depends on the kind of repair you need. If it’s minor and can be done in-house, repairing a car at home can help you save money . . . but it does require the proper equipment, knowledge, and parts. If you’re not sure how to go about it, you should enlist the help of an experienced mechanic.

The cost of auto repairs can be expensive and leave you wondering how to finance a car repair in Canada. The best way to finance a car repair in Canada is by waiting until you can afford it, but there are other options. Whether you are planning on financing a car repair or just need some additional cash for bills.

When you’re trying to finance a car repair, it may not seem like an ideal idea. However, there are many reasons why it why be a good choice. The answer to the question of “How do I borrow money for car repairs?” is actually quite simple. You can get a loan specifically for your auto repairs; it just depends on what personal factors are important to you.

One of the most important things to know is that financing a car repair in Canada can work well. So! Plan carefully and shop around for the best interest rate.

Should I pay for a car repair on my credit card

Can you pay for car repairs with a credit card?

Using a credit card to pay for car repairs is the same as paying cash. If you have a major repair, your auto insurance company might cover it. But if not, here are some things to consider before using your credit card to pay for car repairs:

  1. What kind of credit card do you have? Some cards offer rewards on purchases made at auto repair shops, which could be worth using if you’re going to get the repairs anyway. For example, Chase offers the Sapphire Reserve Visa Card and American Express has the Business Gold Rewards Card that provides bonuses when purchasing parts or services related to vehicle maintenance and repair.
  2. Is there another option? If possible and safe (for example, not in rush hour traffic), call around for estimates from other businesses nearby instead of paying with credit so that you can compare prices.

Why would you want to put car repairs on a credit card?

  1.  You can earn rewards. If you have a cashback credit card, you may be able to earn rewards on the amount of your repair. For example, if you have an Amazon Visa card that offers 2% cashback on purchases at Whole Foods and 3% cashback at restaurants and gas stations, then paying for your car repairs with this card could help you save money.
  2. There’s no interest. If you have a 0% APR credit card or balance transfer credit card, then it might make sense to pay for your car repairs with one of these cards because they won’t charge interest during the 0% intro period (although they will charge interest after the intro period ends).
  3. Extended warranty protection is included in some cases. Some cards include extended warranty protection when paying for items like cars or electronics; therefore paying for these items with a certain type of credit card could give additional coverage beyond what was originally offered by the manufacturer — especially if the said item has been paid off completely prior to making any repairs on it!

What if it’s not an emergency, but I just don’t want to pay cash?

You could use a credit card for non-emergency repairs, but it’s not usually a good idea. If you need to make an unexpected car repair and don’t have the money on hand, pay for it out of your savings account or your next paycheck. Then, once the bill is paid off, return to paying cash for all future repairs.

Using your credit card in this situation will only cause trouble: you’ll be charged interest on that balance and won’t be able to earn rewards points on it (since rewards cards typically require spending at least $500 in three months). What’s more, is that if things go awry with the repair—or even if they don’t—you’ll still have to deal with the mental stress of someone else handling something so personal as your vehicle. It may seem like an easy way out now, but it could end up costing more than just cash down the road when damage occurs or lawsuits ensue because of poor customer service while dealing with an unfamiliar third-party company.

How to Finance Your Car Repairs When You Have Bad Credit

If you have bad credit, you may think that you’re out of options when it comes to financing your car repairs. However, there are still a few avenues you can explore. Here are some tips on how to finance your car repairs when you have bad credit.

  1. Check Your Warranty
    If your car is still under warranty, you may be able to get it repaired for free or at a reduced rate. Be sure to check your warranty before taking your car in for repairs.
  2. Use a Credit Card
    If you have a credit card with a good interest rate, you may be able to use it to finance your car repairs. But make sure you only use it for emergencies, as a regular payment on your credit card may hurt your credit score.

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  1. Pay Cash
    If you have access to cash, consider financing your car repairs in cash rather than using credit. However, you should be careful not to pay too much in cash and run the risk of hitting your credit limit.
  2. Get a Car Loan
    If you have bad credit, it may be difficult to get financing for a car loan. You may have to be preapproved, meaning you have to have a credit score that is higher than a certain number. Then, after you are approved, the interest rate you will pay will be higher than it would have been if you had taken out a car loan in the first place. You can find a car loan by contacting a lender and asking if they will finance you.
  3. Make repairs yourself
    If you have some experience with cars, consider making your own repairs.  When you don’t want to be caught up in a lengthy repair process, work on the vehicle during lunch and dinner breaks. If the need to use the car prevents you from doing repairs, you can either find someone who will do them for you or pay someone to do them for you.

Get the right type of auto loan based on your financial situation

When it comes to car repairs, there are two main types of auto loans: secured and unsecured. Secured loans use your car as collateral, while unsecured loans do not.
If you’re interested in getting a loan to pay for auto repairs in Canada, here’s what you need to know about both types of loans:

What’s the difference between a secured and an unsecured car repair loan?

Secured and unsecured car repair loans are the two main types of car loans in Canada. The difference between them is that secured loans are backed by collateral, while unsecured loans aren’t. This means that if you default on a secured loan, your creditor can repossess the item used as collateral (such as your car) and sell it to pay off your debt.

If you have good credit and can get a lower interest rate on an unsecured loan than a secured one. But if you don’t have very good credit or are struggling financially, getting an unsecured loan might not be feasible. Your lenders will be reluctant to accept such high risk for low returns. So! Taking a secured loan can be more attractive for you due to lower interest rates.

Secured vs. unsecured car repair loans in Canada

  1. Secured loans tend to have higher interest rates. This is because they have a lower risk of default than unsecured loans. If you don’t make payments on your secured loan, the lender can take your collateral (the thing that you gave them as security for the loan) and sell it off to recoup their money.
  2. Unsecured auto repair loans might not be available in every province or territory in Canada. In Ontario, the government has implemented legislation which requires that an individual show proof of income before they are eligible for an unsecured car repair loan under $5,000 with a lender licensed by the Financial Services Commission of Ontario (FSCO). This means that if you live in Ontario and want to borrow less than $5,000 from a licensed lender who provides unsecured car repair financing options such as LoansCanada or Intercredit Canada Inc., then you will need to provide proof of income first so that they can approve your application!

Choose a lender that has experience and expertise in auto financing

When choosing a lender, you’ll want to look for one that has experience dealing with auto loans. Your lender should be able to help you out if there are any issues down the line. They should also be able to provide good advice on how to get a good interest rate and ensure that you get the right type of loan for your needs.

To find out if they’re worth working with, ask them these questions:

  1. Do they offer competitive rates?
  2. Is their service reliable?
  3. What kind of support do they have in case something goes wrong during repayment?

You might be able to afford a longer payment term with a bad credit secured loan

You might have heard that a secured loan is a better option if you have bad credit. But what does this mean, exactly? A secured loan is one where the lender holds something of value as collateral, such as your home or car. This means that if you stop making payments on your car repair loan, they can sell the vehicle in order to get their money back — but with an unsecured loan, there’s nothing to take away from you if you don’t pay back what’s owed.

With unsecured car loans for bad credit:

Why Should You Consider Unsecured Car Repair Loans?

The main reason why people opt for unsecured car loans is that they can be used for more than just purchasing vehicles. You can also use them to finance home improvement projects or pay off bills such as medical expenses and credit card debt. The interest rates are usually higher on these types of loans compared to other types of loans such as mortgages or auto leases, but they may still be less expensive than borrowing from friends or family members.

The benefits of unsecured car repair loans include:

  1. No collateral is required. You don’t have to put up your car or other property as collateral for an unsecured loan. If you default on the loan, the lender can only go after your personal assets – they can’t take back your vehicle.
  2. Low-interest rates. Since there’s no collateral backing up the loan, lenders must offer lower interest rates to attract customers. Although these rates may be slightly higher than what you’d pay with a secured loan, they’re still much lower than those charged by credit cards or payday lenders.
  3. Flexibility in repayment terms. With an unsecured auto loan, there’s more flexibility in terms of when and how much money you borrow as well as how long it takes to repay the debt (up to 72 months). This makes it easier for people who are struggling financially or need

However, there are some drawbacks to unsecured car repair loans as well. These include:

  1. The main drawback of unsecured car repair loans is that they can be applied for without having to offer collateral of any kind, thus making them unsecured. As such, if you’re unable to pay back your loan, the lender will not be able to repossess your vehicle or any other form of property that you may have used as collateral.
  2. Higher interest rates: The lender will charge more interest because they are taking on more risk by lending money without collateral being offered in return if something goes wrong with the loan.
  3. Longer repayment periods: It takes longer for the lender to get their money back from an unsecured loan compared with a secured one where they have collateral or equity in their assets that can be used as security for their loan (for example, if you take out a mortgage on your home).
  4. Unsecured car repair loans are also not available from all banks and financial institutions, so you’ll need to do some research before applying for one.
  5. Another drawback is that these types of loans usually have strict repayment terms. Meaning that you will have to make monthly payments for the entire term regardless of whether or not your car is fixed. This can be problematic if you cannot afford to make such large payments every month.
  6. The final drawback is that there are no guarantees that you will receive any money at all if your vehicle needs repairs. If the cost of repairing your vehicle exceeds what you have available in your bank account, then you may not receive any money at all from this type of loan.

Types Of Cars Covered Under Auto Repair Payday Loans

  1. Motorhomes, trailers, and recreational vehicles
  2. Trucks and oversized vans
  3. Motorcycles, dirtbikes, and other all-terrain vehicles
  4. Boats and jet-skis
  5. Tractors and other heavy labor vehicles
  6. Skidoos and other winter vehicles

What Does A Car Repair Loans Cover in Canada?

A car repair loan is exactly what it sounds like, an installment payday loan that’s designed to help you deal with your expensive car repairs. That being said, repairs aren’t the only vehicle-related costs that one of these advance cash can cover. You can also use a car repair loan to finance:

General Maintenance Costs

  1. Oil, coolant, and other fluid changes
  2. New batteries
  3. Inspection costs
  4. Seasonal tire changes
  5. Seasonal rust
  6. proofing
  7. Muffler patching and replacement
  8. Timing belt/chain replacement
  9. Air conditioning/heating maintenance

Overall Safety Improvement

  1. New tires (all-season, winter, summer, etc.)
  2. Head, tail, tag, and interior light repairs
  3. Windshield or window replacements
  4. New brake pads and discs, or other brake-related procedures
  5. Buy new airbags, seatbelts, and other safety features
  6. New suspension, transmission


Cosmetic Improvements

  1. New or custom paint jobs
  2. Tinted windows
  3. New seats
  4. Rust, dent, and scratch removal
  5. Custom additions (spoilers, rims, spokes, etc)

Accident and Damage Repairs

  1. Cracked/broken windshield or other windows
  2. Fender and bumper replacements
  3. Front and side airbag replacement
  4. General bodywork

Want to borrow? Now you’re ready.

Now that you understand how Car Repair Loans work in Canada, you’re ready to look into your borrowing options with confidence–and choose what’s best for you when the time comes.


No Credit Checks. Bad Credit Accepted

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