Unexpected car issues can happen at the most inconvenient times. Then again, is there ever a time when it IS convenient? Probably not!
Whether it's a sudden engine failure or a brake issue, these repairs usually need to be repaired immediately and can be costly, especially if you haven’t necessarily put money aside to handle the expense. That's where car repair loans can help!
In this blog, we'll explore everything you need to know about car repair loans, from what they are to how they work, and why iCash is a great option if you need to apply for a loan to handle a car repair!.
What Are Car Repair Loans?
Car repair loans are pretty much exactly what they sound like - a type of loan meant to help cover the cost of unexpected vehicle repairs. These loans can be a lifesaver when your car suddenly breaks down, and you don't have the funds readily available to fix it. Imagine being stuck without a vehicle and needing it for work, school, or daily errands. A car repair loan provides the financial support needed to handle these unexpected expenses.
For people who don’t have enough savings for emergency expenses (whether it’s for car repairs or otherwise), these loans are really useful. With a car repair loan, you can pay for those repairs and have your car back on the road as quickly as possible.
Car repair loans can be used for anything, like fixing a broken transmission, replacing worn-out tires, or addressing electrical issues. The flexibility of these loans allows you to cover any necessary repairs without having to dip into your savings or emergency funds.
How Do Car Repair Loans Work?
Obtaining a car repair loan is easy, especially if you’re getting it with iCash. Here's a step-by-step guide on how it works:
Determine Your Repair Costs: You may want to start by getting an estimate from your mechanic or auto repair shop. It’s not necessarily a required step, but it’ll give you a clear idea of how much money you need before you apply for a car repair loan.
Apply for the Loan: Next, click the “Get a Loan” button on the iCash website and fill out the digital loan application form. You'll need to provide some basic personal and financial information, but it won’t take you more than 10 minutes to complete.
Loan Approval Decision: Thanks to our automated approval process, we’ll immediately determine if you qualify for the loan, so you won’t have to worry about waiting for a decision.
Receive Funds: If approved, we’ll send you an e-Transfer in 2 minutes with the funds that you’ve been approved for.
Repay the Loan: Repayment terms vary depending on the province you reside. You'll need to make regular payments, including interest, until the loan is fully repaid, but luckily repayments are automatically debited from your bank account, so it’s all done automatically, making it much easier.
Interest rates for car repair loans can vary widely based on the lender, and the loan amount. It's important to understand the terms and conditions of your loan before signing any agreement. When comparing loan options, the things you should pay attention to are the interest rate and any fees associated with the loan.
Types of Car Repair Loans
There are several types of car repair loans available, each with its pros and cons:
Personal Loans: These are unsecured loans that can be used for various purposes, including car repairs. They often have lower interest rates than other types of loans but may require a good credit score.
Title Loans: These loans use your car title as collateral. They can be a quick way to get funds, but they come with higher risks, such as high interest rates and risk of losing your car if you default on the loan.
Loans from Auto Repair Shops: Some auto repair shops offer financing options directly to their customers. These can be convenient but may come with higher interest rates and less favorable terms.
Credit Card Cash Advances: If you have a credit card, you can take a cash advance to pay for car repairs. This option is quick (because you don’t need to apply for anything) but can be very expensive due to high interest rates and fees, and can end up increasing your credit card debt.
Each type of loan has its advantages and disadvantages, so it's important to carefully consider all your options and choose the one that best fits your situation.
Qualifying for a Car Repair Loan
To qualify for a car repair loan with iCash:
Be at least 18 years old (19 years old for applicants in British Columbia, New Brunswick, Nova Scotia).
Be a resident of any of the provinces in which we operate. (AB, ON, BC, MB, NB, NS, PEI)
Show that you have been receiving the same source of income for the past three months.
Have a total net income of at least $800/month.
Have access to an online bank account.
Have a valid mobile phone number, address, and email address (VoIP numbers are not accepted).
To improve your chances of approval, providing accurate and complete information on your application will maximize your chances.
Choosing the Right Lender: Why iCash?
When it comes to choosing a lender for your car repair loan, iCash is favoured by nearly one million Canadians for many reasons. iCash offers competitive interest rates compared to other lenders, making us the more affordable option.
We also provide flexible repayment terms* to fit your budget and financial situation (dependent on provincial regulations). We’re also transparent about our fees and charges, so you won't be surprised by any hidden costs and you’ll know exactly what you’re getting before you even apply for the loan.
The application process with iCash is simple and user-friendly. You can apply online, either directly on the website or by downloading the official iCash app from the iOS app store or Google Play store. You’ll be able to complete the application within 10 minutes. It’s very straightforward and easy to understand and follow.
Once you hit submit on the application, you won’t have to wait around for hours or days to find out if you’ve been approved. iCash handles our loan approvals through an automated process that allows you to receive an instant decision. Gone are the days of waiting in long lines at the bank!
You know what else is gone? The days of waiting a long time to get your money, even after you’ve been approved. With iCash, once you’ve been approved, you’ll get an e-Transfer in 2 minutes with your funds. And that’s 24/7 - even on weekends and holidays.
Finally, should you require any assistance during the application process, our customer service team is available to help. They’ll happily answer any questions you have and guide you along the process of filling out the digital form.
Managing Your Loan
Once you've secured a car repair loan, it's important to manage it responsibly. Here are a few things to keep in mind:
Make Timely Payments: Set up reminders or automatic payments to ensure you don't miss any due dates. Late payments can result in additional fees and negatively impact your credit score. With iCash, you won’t have to worry about forgetting, because repayments are done automatically.
Adapt your budget: You’ll want to make a budget that accommodates loan repayments without messing around with other financial obligations. This might involve cutting back on non-essential expenses.
Seek Assistance if Needed: If you face difficulties in repaying the loan, reach out to iCash's customer service ASAP. We’ll do our best to offer solutions to help you stay on track.
Avoid Additional Debt: While repaying your car repair loan, try to avoid taking on more debt. This can help you focus on repaying the current loan quickly and prevent your financial situation from becoming more complicated.
By following these best practices, you can repay your car repair loan smoothly and avoid falling into debt traps.
Should You Apply for a Car Repair Loan?
When your car unexpectedly has issues, a car repair loan can end up being a great tool to help you handle it quickly and easily.
Understanding the different loan options and knowing what the interest rates and fees are beforehand can make the process easier and more affordable for you. As long as you manage your loan responsibly, you can have your car back on the road in no time (and without straining your finances).
Whether you choose an actual car repair loan, personal loan, title loan, or financing from an auto repair shop, it's absolutely important to understand the terms and conditions of your loan and choose the option that best fits your needs.
