10 Auto Repair Loans for Bad Credit, Including No Credit Check Options

You can get an auto repair loan even if you have bad credit — and sometimes without a credit check. While your car dealership or mechanic may offer financing options, you can also apply for a personal loan and use it to fund your car repairs. According to Experian, a credit score below 670 is considered fair, and below 580 is poor. You can still get approved for a loan with poor or fair credit, but your options will be more limited and lenders will likely charge higher interest rates.

When your car is in the shop, you may feel pressed to make a decision to borrow first and ask questions later. However, it’s important to understand the terms of any loan before committing. Before you take out an auto repair loan, consider the following questions:

• Does the provider lend in my area?
• Do I meet the credit requirements, or can I use a cosigner who does?
• Can I borrow enough to cover my repair estimate?
• What’s the interest rate? What happens if I don’t pay the balance off during the loan period?
• Will I be able to pay on time? What’s the penalty if I pay late?

In addition to thinking through the terms of a loan, you can also work with the dealership or mechanic on the cost estimate. When you get the estimate for the work your car needs, call around to see if other shops can give you a better price. Once you know how much the work will cost, you can begin the financing process. Below, we have the list of places to get personal loans for auto repairs even with bad credit, and we also provide some alternatives to taking out a loan.

What We Recommend

When you need to borrow money to repair your car and you have less-than-excellent credit, your choice of lender will ultimately depend on your financing priorities. If you prefer to keep rates low with a secured loan — putting your car or another account up as collateral — Wells Fargo has the most financing options, the highest possible loan amounts, and the most competitive interest rates.

If you prefer an unsecured loan, you will likely want to consider a loan from a peer-to-peer lender like PersonalLoans.com or LendingClub, both of which can connect borrowers with less than perfect credit to lenders offering competitive rates.

If you can’t or don’t want to take out a loan, you may want to consider in-house financing from your car dealership or mechanic. Many dealerships (or their partnering financial companies) are able to offer better terms than traditional loans, and individual mechanics may be willing to work with you to work out a customized payment plan.

The List

You can use any personal loan to pay for car repairs. Some companies advertise “auto repair loans,” but you’ll be borrowing from the same companies on the same terms, no matter how you use the money. We’ve broken down the list of lenders by secured loan providers and unsecured loan providers, starting with the options in each category that will offer the best financing terms.

See the table below for a quick comparison, then click any lender or scroll below for more details.

Secured Loan Providers

You can avoid a credit check or make up for a low credit score by offering collateral — this is known as a secured loan. If you have valuable assets like a paid-off car, motorcycle, or boat, or a savings account or certificate of deposit (CD), you can borrow against the value from one of the lenders below. Keep in mind, a secured loan is only “secure” for the lender; you risk losing your collateral if you fail to pay the loan back on time.

Wells Fargo

• Coverage area: Nationwide; rates and terms vary state by state
• Loan amount: Must be less than the value of your collateral. You can use a Wells Fargo savings account or CD as collateral for a one-time loan, a line of credit, or a secured credit card.
  • Secured loan:  $3,000 to $250,000
  • Secured line of credit: $5,000 to $250,000
  • Secured credit card:  $300 to $10,000
• APR: Varies based on loan type — typically between 6% and 15% for secured loans and lines of credit; usually 20% or more for a secured credit card
• Minimum credit requirement: No stated minimum
• Credit check required? Yes
• Find out more or apply

OneMain Financial

• Coverage area: Nationwide; rates and terms vary state by state
• Loan amount: Typically $20,000 or less. OneMain Financial offers both unsecured and secured loans — your specific loan offer depends on the value of your collateral and your financial situation.
• APR: Varies; typically between 18% and 35%
• Minimum credit score: No stated minimum
• Credit check required? When you apply, OneMain Financial will run a soft credit check, which won’t affect your credit score.
• Find out more or apply

Finova Financial

• Coverage area: Nationwide; rates and terms vary by state
• Loan amount: Varies by the value of your collateral, your financial situation, and state of residence
• APR: Varies; typically between 18% and 36%
• Minimum credit requirement: Poor
• Credit check required? Finova conducts a soft credit check for preapproval, then it will run a hard credit check when you select your specific loan.
• Find out more or apply

Unsecured Loan Providers

If you can’t or don’t want to put up collateral for your loan, you can apply for an unsecured loan. Since unsecured loans are typically riskier for lenders, they will likely come with higher interest rates. However, the lenders listed below will generally work with you even if you have a low credit score or past financial problems.

PersonalLoans.com

Note: PersonalLoans.com is a clearinghouse that can connect you to banks, finance companies, and peer-to-peer networks that will make you a loan offer based on your profile.

• Coverage area: Nationwide; terms vary by state
• Loan amount: Range from $1,000 to $35,000
• APR: Varies; typically between 5% and 36%
• Minimum credit requirement: No minimum. You must be 18 years old, have a Social Security number and bank account in your own name, and be a U.S. citizen or permanent resident. You must be employed or have regular income from another source, such as Social Security or a pension. Your credit history affects the terms you’ll be offered.
• Credit check required? Lenders reviewing your application may do either a soft or hard credit check.
• Find out more or apply

LendingClub

Note: LendingClub is a peer-to-peer lending network that connects borrowers with private investors (instead of financial companies).

• Coverage area: Nationwide, excluding Iowa, Guam, and Puerto Rico
• Loan amount: Range from $1,000 to $40,000, depending on the lender and your location and credit history
• APR: Varies by location and creditworthiness; rates may be variable or fixed
• Minimum credit requirement: No minimum. You must be 18 years old, have a bank account in your own name, and be a U.S. citizen, permanent resident, or residing in the U.S. on a long-term visa. Your credit history affects the terms you’ll be offered. If you don’t get an offer, you can re-apply with a cosigner.
• Credit check required? When you apply, LendingClub will run a soft credit check, which won’t affect your credit score.
• Find out more or apply

Avant

• Coverage area: Nationwide; terms vary by state
• Loan amount: Range from $2,000 to $35,000, with payment plans from two to five years
• APR: Varies; typically between 9% and 36%
• Minimum credit requirement: No stated minimum, but your credit history affects the terms you’ll be offered. Typical customers have scores of 600 and up.
• Credit check required? When you apply, Avant will run a soft credit check, which won’t affect your credit score.
• Find out more or apply

LendingPoint

• Coverage area: Currently available in 34 states and Washington, D.C.
• Loan amount: Range from $2,000 to $25,000, with terms from two to four years
• APR: Varies; typically between 15% and 35%
• Minimum credit requirement: No stated minimum. Offers are made based on several factors, including your job history, current income, and long-term financial picture. You must be 18 years old with a government-issued ID and a Social Security number, have a bank account in your own name, and have an annual income of $20,000. Your credit history affects the terms you’ll be offered.
• Credit check required? When you apply, LendingPoint will run a soft credit check, which won’t affect your credit score. If you accept a loan offer, LendingPoint will make a hard inquiry that will show up on your credit report.
• Find out more or apply

Peerform

Note: Peerform is a peer-to-peer lending network that connects borrowers with private investors (instead of financial companies).

• Coverage area: Available in most states
• Loan amount: Range from $4,000 to $25,000, with a three-year term
• APR: Varies; typically between 5% and 30%
• Minimum credit requirement: 600; your credit history affects the terms you’ll be offered
• Credit check required? When you apply, Peerform will run a soft credit check, which won’t affect your credit score.
• Find out more or apply

Loans Now

• Coverage area: Nationwide
• Loan amount: Customizable, with payment plans from three to seven years
• APR: Variable starting around 5%
• Minimum credit requirement: Can be as low as 450 with the Loans Now personal loan discovery process
• Credit check required? No upfront credit check, but if you accept an offer, Loans Now will do a hard inquiry, which will show up on your credit report.
• Find out more or apply

Visions Federal Credit Union

• Coverage area: Nationwide service; locations in New York, New Jersey, and Pennsylvania
• Loan amount: Up to $30,000 based on income and creditworthiness
• APR: Varies; typically less than 12%
• Minimum credit requirement: No specific minimum, but you must be a Visions Federal Credit Union member in “good standing” to qualify for its personal loans
• Credit check required? Visions Federal Credit Union will do a hard credit check to determine loan approval.
• Find out more or apply

CashUSA.com

Note: CashUSA.com is not a direct lender. It is a brokerage site that will submit your application to many lenders in its network so you can choose your best option from the results.

• Coverage area: Nationwide
• Loan amount: Range from $1,000 to $10,000, with payment plans from 90 days to six years
• APR: Varies; typically between 5% and 36%
• Minimum credit requirement: No minimum. You must be 18 years old, be employed with a net income of $1,000 per month, have a checking account in your own name, and be a U.S. citizen or permanent resident. Your credit history affects the terms you’ll be offered.
• Credit check required? When you apply, CashUSA.com will run a soft credit check, which won’t affect your credit score. Individual lenders may run other types of credit checks that could show up as inquiries on your credit report.
• Find out more or apply

NetCredit

• Coverage area: Available in 14 states; terms vary by state
• Loan amount: Range from $1,000 to $10,000
• APR: Variable, with extreme interest rates exceeding 100% in some cases
• Minimum credit score: No stated minimum, but your credit history affects the terms you’ll be offered
• Credit check required? When you apply, NetCredit will run a soft credit check, which won’t affect your credit score.
• Find out more or apply

Alternatives to Taking out a Loan

If you are unable to get approved for an auto repair loan or you simply want to avoid taking one out altogether, there are a few things you can do.

Dealership Financing

Many dealerships offer financing to help you pay for repair costs, including Buick, Chevrolet, Chrysler, Dodge, Honda, Jeep, Nissan, Toyota, and others. Contact your local dealership to see if it has in-house financing or if it works with a lending partner like Confident Financial Solutions, iCare Financial, or Synchrony Financial. These lenders will require a credit check, but they may have more flexible requirements or better terms than taking a loan directly.

Financing With Your Mechanic

You can also ask your mechanic if he or she may be willing to agree to a payment plan. Some mechanics offer bad-credit auto repair financing through a lease-purchase program like West Creek Financial. Lease-purchase finance companies work through the retailer, so the financing options will depend on your mechanic’s program. These payment plans don’t require a credit check, but there are some important downsides to lease-purchase plans — primarily cost. Instead of paying interest on a loan, you’ll pay a portion of the lease fee with each payment. Those fees can increase your repair costs by 200% or more.

Find a Technical/Vocational School

If you’re short on cash and you’re not in a hurry to repair your car, you can try calling technical or vocational schools that have mechanic training programs. Find out if a school could use your car as a class project. If so, ask if it charges a fee and what you can expect to pay for parts. You can find local listings for mechanic schools at Trade-Schools.net.

In Summary

Credit issues don’t have to stop you from making the car repairs you need, though your options may be more limited and your interest rates slightly higher. If you need to take out a loan to fund your repairs, consider a secured loan from Wells Fargo, or an unsecured loan from online peer-to-peer lenders like PersonalLoans.com or LendingClub. When taking out a personal loan, be sure to look into the full terms of the loan to make sure you are able to make payments on time. Making on-time payments will improve your credit score in the long-term. If you prefer not to take out a loan, you may want to consider financing through your car dealership or mechanic, or reaching out to a trade school to see if it can use your car in a mechanic training program.

For more about financing auto repairs, we have information about auto repair credit cards for bad credit. Some lenders have specific loans for military service members. For more information on personal loans for active-duty personnel or veterans with bad credit, check out our article about loans for veterans with bad credit.