A broken-down car is one of the most common financial emergencies Americans face. The average car repair costs $500–$2,000, and for major work like a transmission or engine, costs can reach $5,000 or more. A personal loan is often the fastest and most affordable way to cover these costs — especially compared to putting it on a high-interest credit card.
Best Personal Loans for Car Repairs
Best for Bad Credit · 300+ Min Score
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Upstart
Fast funding — often next business day after approval
APR Range
6.6%–35.99%
Loan Amount
$1K–$75K
Funding Speed
1 business day
Upstart is ideal for car repair loans because they fund quickly and accept borrowers with limited or damaged credit. Their AI underwriting looks at employment and income, not just your credit score. Checking your rate is a soft pull — no impact to your credit.
Personal Loan vs. Credit Card for Car Repairs
| Factor | Personal Loan | Credit Card |
|---|---|---|
| APR | 6%–36% | 20%–30%+ |
| Payment structure | Fixed monthly payments | Variable minimum payments |
| Best for | Repairs over $1,000 | Small repairs under $500 |
| Funding speed | 1–3 business days | Instant (if you have available credit) |
Pro Tip: Always get a written estimate from the mechanic before applying for a loan. This helps you borrow exactly what you need — not more.
What to Do If You’re Denied
- Ask the repair shop about a payment plan — Many shops offer in-house financing.
- Check if your auto insurance covers it — Collision and comprehensive coverage may apply.
- Try a credit union — Credit unions often have more flexible underwriting than banks.
Frequently Asked Questions
Can I get a personal loan for car repairs?
Yes. Personal loans are one of the best ways to pay for car repairs because they are unsecured (no collateral required), fund quickly (often within 1–3 days), and have fixed monthly payments. Lenders like Upstart accept scores as low as 300.
How much can I borrow for car repairs?
Most personal loan lenders offer between $1,000 and $50,000, which covers the vast majority of car repair costs. Average car repair costs range from $500 for minor repairs to $5,000+ for major engine or transmission work.
Is a personal loan better than a credit card for car repairs?
For repairs over $1,000, a personal loan is usually better than a credit card. Personal loans have lower APRs (6–36%) compared to credit cards (20–30%+), and fixed monthly payments make budgeting easier.
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