Car repairs can cost hundreds or even thousands of dollars. A personal loan is one way to cover a car repair bill, and funds are often available one day after approval.
Checking rates is free and won't impact your credit score.
Best for auto repair loans for good credit
2025 NerdWallet award winner
7.90 - 35.99%
$1K - $60K
600
2 to 7 years
A LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms.
Read our review of LendingClubA LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms.
Read our review of LendingClubBest for secured or unsecured car repair loans
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest for auto repair loans with fast funding
8.01 - 29.99%
$2K - $45K
640
3 to 5 years
Rocket Loans is a solid online loan option for good- to excellent-credit borrowers who need to borrow money fast.
Read our review of Rocket LoansRocket Loans is a solid online loan option for good- to excellent-credit borrowers who need to borrow money fast.
Read our review of Rocket LoansBest for auto repair loans for bad credit
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
A Universal Credit personal loan may be a smart choice for borrowers with lower credit scores who want to consolidate debt.
Read our review of Universal CreditA Universal Credit personal loan may be a smart choice for borrowers with lower credit scores who want to consolidate debt.
Read our review of Universal CreditBest for auto repair loans with rate discounts
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeUpgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeBest for car repair loans for thin credit
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartUpstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartBest for auto repair loans for fair and bad credit
9.95 - 35.99%
$2K - $35K
550
2 to 5 years
Avant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.
Read our review of AvantAvant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high.
Read our review of AvantOur team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
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» MORE: Best unsecured loans
Auto repair loans are personal loans that are used to pay costly auto repair bills. Personal loan amounts are typically $1,000 to $50,000, though some lenders offer smaller or larger loans. Annual percentage rates, which represent the full cost of borrowing, are fixed and usually range from 6 to 36%.
Since you can use a personal loan for almost any expense, you can use one to pay an auto repair bill if you don’t have the money on hand. Most personal loans are unsecured, meaning they don’t require collateral, and lenders qualify borrowers based on their credit, income and existing debts. Borrowers with good to excellent credit (a score in the mid-600s or higher) have the best chances of qualifying and getting a low APR.
Nerdy Tip
Most auto insurance policies don't cover routine repairs or maintenance, but if your vehicle was damaged due to an accident or weather event, your insurance may cover those repairs. Check your policy or vehicle warranty plan before you borrow.
You can get a personal loan for an auto repair from a bank, credit union or online lender, but online lenders tend to be the fastest.
Here’s a breakdown of approval and funding time for our top picks for auto repair loans:
Lender | Approval time | Funding time |
|---|---|---|
Instant. | Same-day, for borrowers who sign their loan documents before 1 p.m. ET Monday through Friday. | |
Instant. | One business day. | |
Instant. | One business day. | |
Instant. | One business day. | |
Within two hours, on average. | One business day. | |
One to a few days. | One day. | |
One to a few days. | One business day. |
To speed up the process, make sure you supply all required documentation in your loan application, including proof of employment and income, like a paystub or tax return.
» MORE: How long does it take to get a personal loan?
Follow these steps to get a loan to cover auto repair costs.
» MORE: How to get a personal loan
If you’re approved for the loan, the lender will likely disburse funds within a few days. Your first loan payment will be due in about 30 days, and the monthly payment amount will be the same for the loan term.
Consider enrolling in automatic payments or setting calendar reminders to ensure you make payments on time. Missed payments can result in late fees, and most lenders report payments that are more than 30 days late to the credit bureaus.
» MORE: What happens if you default on a personal loan?
Repair shop financing: The dealership or repair shop may offer in-house financing through a third-party lender. For example, Jiffy Lube and Midas both offer credit cards. These financing options may include a low- or no-interest introductory period, but be sure to check the regular interest rate and terms. If you can’t pay the repair off during the promotional period, you may be charged interest retroactively.
Buy now, pay later: “Buy now, pay later” companies, such as Affirm, Afterpay and Klarna, offer payment plans that can help break up an auto repair or car-related purchase, like new tires. These plans may be available directly at the repair shop or dealer, or you can download a BNPL mobile app and search for the store or repair shop in the app’s directory. The most popular plan is called a pay-in-four, in which payments are spread out across six weeks for no interest.
Zero-interest credit card: Some credit cards have no-interest promotional periods — generally the first 15 or 21 months — for new account holders. Qualifying for a zero-interest credit card usually requires good or excellent credit. These cards generally don’t charge retroactive interest, so if you don’t pay the card off during the promotional period, you’ll begin paying the regular interest rate once it ends.
Family loan: Borrowing money from a loved one helps you avoid a formal application process and may be an interest-free financing option. Sign a loan agreement to keep both parties on the same page about how the family loan will be repaid.
Financial assistance from a local nonprofit: Some local charities and nonprofit organizations help people in need with bills they can’t afford. Assistance may be based on your household income. A good place to start is 211.org.
Approach payday loans and title loans with caution, because while they provide borrowers with fast, easy money, their high rates and short repayment periods make them difficult to repay.
Most personal finance experts consider loans to be affordable if interest rates are 36% or lower. Payday and title lenders often charge triple-digit rates. Those who are unable to repay these loans may need to borrow again, creating a cycle of debt.
Getting an auto repair loan with bad credit (any score between 300 and the high 500s) can be challenging, but not impossible. Bad-credit borrowers who qualify will likely receive an APR on the high end of the lender’s range. Adding a co-signer or collateral to secure the loan may help you qualify at a lower rate.
Some mechanics and auto repair shops allow customers to use BNPL plans from companies like Affirm, Afterpay and Klarna to split expensive repair bills into smaller, more manageable payments. Check with your shop to see if it offers this payment option.
