In life, sometimes you have any such experience when your automobile needs a serious repair. In such situations you may need the car repair loan. Car repair loan can be used for expensive vehicle repair, insurance payment or bringing a dead automobile back to life.
These type of loans are very different from personal unsecured loans as the money is used to repair the car or any other automobile. Mostly the repairs are done to keep the car in functioning condition, however someone may borrow the money to correct the cosmetic deficiencies which the automobile insurance does not cover.
Sometimes the policies require a definite amount of money paid by the automobile owner, before the insurance company pays anything on the repair. This amount, paid by the owner before the insurance amount paid is called as deductible. Sometimes people do not have saved money with them which they can pay before getting the amount from insurance company. In such cases, car repair loans help them out.
There are number of different options and terms for the borrowers which suits them according to the particular situation. The interest rate used on the money is the current prime interest rate. There are cases when the borrower does not have a positive credit history, so in such cases a higher interest rate is charged.
The car repair loans amount is limited to almost $2000 and this should be repaid in maximum of 24 months time period. However, in order to avoid borrowing money, the automobile owner must have savings, so that they can be used for repairing purposes instead of borrowing.Though such savings can be of great help during bad timings, but they need continuous saving and self discipline.
The money should always be spent wisely and to fulfill the needs. If you will waste the money today, you would not be having any savings for future then. Suppose if your car is damaged, and you have to reach office at time, you will definitely face problem. So it is always advisable to keep a portion of your income as a saving, which can be used for some emergency like car repair.
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