Car repairs can cost hundreds or even thousands of dollars. A personal loan is one way to cover a bill, and funds are often available one day after approval.
Checking rates is free and won't impact your credit score.
Auto repair loans are personal loans that can be used to pay costly auto repair bills if you don't have savings or other ways to pay.
Borrowers with good to excellent credit (a score in the mid-600s or higher) have the best chances of qualifying and getting a low annual percentage rate (APR) on a loan. But our list of the best auto repair loans includes lenders that accept borrowers with lower credit scores, too.
When comparing loans, consider rates and loan amounts as well as funding time. You'll also want to make sure the monthly payments fit in your budget.
Best for rate discounts
2026 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for borrowers with good credit
2026 NerdWallet award winner
6.53 - 35.99%
$1K - $60K
600
2 to 7 years
Best for small loans
7.99 - 17.99%
$600 - $50K
None
1 to 5 years
Best for borrowers with bad credit
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
Best for secured loans
2026 NerdWallet award winner
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for borrowers with thin credit histories
2026 NerdWallet award winner
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for fast funding
8.01 - 29.99%
$2K - $45K
640
3 to 5 years
Our 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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
Upgrade will reduce borrowers’ personal loan rates by 0.5 percentage points if they set up automatic payments. The lender also offers a discount of up to 20% off a personal loan rate for borrowers who have other Upgrade products, like an Upgrade checking account.
One downside is that Upgrade loans come with origination fees that could be 1.85% to 9.99% of the total loan amount.
🤓 Nerdy Tip
You’ll see that many lenders charge origination fees, which can be up to 10% of the loan amount and are typically taken from the loan proceeds. Say you get a $20,000 loan with a 5% origination fee. That 5% — or $1,000 — would be deducted from your loan and leave you with $19,000. And while you receive the lesser amount, you must still repay the higher amount.
LendingClub personal loans have multiple features that borrowers with good credit can typically expect: low starting APRs, fast funding and a wide range of loan amounts and repayment terms.
However, you’ll need a debt-to-income (DTI) ratio no higher than 40% to qualify. Other lenders may allow borrowers to have higher DTI ratios.
If your auto repair bill is less than $1,000, PenFed Credit Union could be a fitting option. PenFed offers personal loans as low as $600, while most lenders have minimum loan amounts starting in the thousands.
To get a PenFed loan, you do have to become a member of the credit union. But unlike some credit unions, anyone is eligible to join.
Potential borrowers with credit scores in the mid to upper 500s may qualify for a Universal Credit personal loan. The lender’s minimum credit score requirement is 560, which is lower than most personal loan lenders.
If you borrow from Universal Credit, however, your personal loan’s origination fee could be from 5.25% to 9.99% of your total loan amount. Other lenders may offer smaller origination fees.
Opting for a secured personal loan instead of a typical unsecured personal loan could increase the likelihood of loan approval, especially for borrowers with low credit scores or income. Best Egg offers lower rates when you secure a loan with collateral — either a vehicle or household fixtures, such as built-in cabinets or bathroom vanities.
One downside is that Best Egg’s minimum loan amount starts at $2,000. This lender may not be the best fit if you don’t need to borrow that much for your car repair.
While many personal loan lenders require borrowers to have at least a couple years of credit history, Upstart accepts loan applicants who are new to credit or have thin credit histories. The lender says it uses alternative data points, like college education or employment history, to evaluate loan applicants instead of relying mostly on credit scores.
It’s important to note that an Upstart personal loan could come with an origination fee up to 12%, which is higher than many lenders. Upstart also only has two repayment terms — a three-year or a five-year term. Other lenders tend to offer more options.
Rocket Loans offers same-day funding if you’re approved for a personal loan and sign the loan agreement by 4 p.m. ET on a business day. While many lenders offer next-day funding, few send the money the same day you apply. This type of fast funding can help get you back on the road with less delay.
You’ll need a credit score of at least 640 and an annual income of at least $24,000 to qualify for a Rocket Loans personal loan. Rocket Loans also only offers two options for repayment terms — either a three-year or a five-year term. Other lenders are less restrictive.
» MORE: Best unsecured loans
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 |
|---|---|---|
Rocket Loans | Within minutes. | Same day for borrowers who sign their loan documents before 4 p.m. ET. |
Upstart | Instant. | One business day. |
PenFed | A few hours to a few days. | Same or next business day. |
Best Egg | Instant. | One business day. |
LendingClub | Within one hour. | One business day. |
Universal Credit | Within a few minutes. | One business day. |
Upgrade | Within a few minutes. | 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.
You’ll need a solid cost estimate to know what size loan to ask for. Get multiple quotes to find the best deal, but keep in mind that some mechanics charge a diagnostic fee to determine the scope of the work.
Consider factors like the time it’ll take to complete the repairs, the reputation of the repair shop and the distance if you need to tow the vehicle to a shop.
🤓 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.
Once you determine what you need to borrow, use a personal loan calculator to estimate what your monthly payments could be. Rates on personal loans range from about 7% to 36%, and terms are typically 24 to 60 months. Plug in different rates and terms to see how they affect the monthly payment and total loan cost.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
Before applying, pre-qualify for personal loans to preview the rate, monthly payment amount and loan term. This process is free and typically involves a soft credit pull, which doesn’t affect your credit score.
Pre-qualify with multiple lenders to compare loan offers. Also compare other financing options to determine the best deal.
Gather documents like your driver’s license, pay stubs and tax returns, because many lenders require proof of identification and income on a loan application. The lender will conduct a hard credit inquiry when you apply for a personal loan, causing a small dip in your credit score.
» MORE: How to get a personal loan
Once you’re approved for the loan and sign the paperwork, 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. Late payments can cause your credit score to drop significantly.
» MORE: What happens if you default on a personal loan?
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” 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 at the repair shop or dealer.
The most popular plan is called a pay-in-four, in which payments are spread out across six weeks for no interest.
Some credit cards have no-interest promotional periods — generally the first 15 or 21 months — for new account holders. Qualifying for a 0% APR 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.
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.
Some local charities and nonprofit organizations help people in need with bills they can’t afford, including car repair bills. Assistance may be based on your household income. A good place to start is 211.org.
Payday loans and title loans may provide borrowers with money quickly, but these lenders often charge triple-digit rates. Also, the loans’ short repayment periods make them difficult to repay.
Most personal finance experts consider loans to be affordable if interest rates are 36% or lower.
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.
