Car Repair Loans

It’s a Monday morning, it’s pouring down, and you’re already running late for work. You jump in your car, start the engine, and… nothing. Your heart sinks.

It sinks further when the mechanic quotes the price for repairs.

Your savings fall short of covering the costs, but you need your car to commute to work. Sound familiar? Little Loans might be able to help you hit the road again.

We’re a credit broker working with a panel of lenders who offer loans for car repairs from £100 up to £10,000. Depending on how much you apply to borrow, car repair loans can be repaid over terms between 3 and 60 months.

What are car repair loans?

Car repair loans are a form of short-term, personal finance to cover the cost of unexpected bills and expenses relating to your vehicle. Your loan is usually repaid in monthly instalments.

Can Little Loans help me search for emergency car repair loans?

Little Loans is a credit broker, working with a trusted panel of UK lenders. You’re welcome to search for a loan with Little Loans if you:

• Are over the age of 18;
• Are a UK resident with a UK address;
• Have a UK bank account with a valid debit card; and
• Have a regular source of income paid directly into your bank account.

Please be aware that some lenders may also ask you to provide up to three years’ worth of UK address history.

Car repair loans for bad credit

If you have poor credit history or a less-than-perfect credit score, you might feel apprehensive about applying for a loan. You can check your credit score for free at Experian, or for a monthly fee at Equifax and TransUnion.

If your credit score is looking a little worse for wear, it may still be possible for you to get a car repair loan. Some of the lenders on our panel are willing to consider applications from those with bad credit. However, you should bear in mind that your borrowing options might be limited, and you could be presented with higher interest rates.

Our soft search credit check makes it possible for you to check your eligibility for a loan without affecting your credit score, which could give you peace of mind.

How much money could I apply to borrow?

The lenders on the Little Loans panel offer car repair loans from £100 to £10,000. You should never borrow more money than you need or can afford to repay.

How does the Little Loans process work?

Our application process has been designed to be as straightforward as possible and should take no longer than five minutes to complete. Financial emergencies are stressful but searching for a loan doesn’t have to be.

1. Choose your loan amount and term and fill in our online form.
2. We’ll be back with a result in just 60 seconds – we’re just running a soft search on your financial profile and scanning our panel of lenders for a suitable match.
3. If we’ve found you a loan, you’ll be redirected to the lender’s website. Be sure to carefully read all about the loan you’ve been offered before deciding whether to make a full application.
4. Should you choose to go ahead, the lender will complete a few further checks, including a hard credit search.
5. If the lender is happy with the outcome of their checks, you’ll be sent a loan agreement. Once the agreement has been signed and returned, and your loan has been approved, the lender will send the funds to your bank account.

If I’m approved for a car repair loan, how soon can I get the money?

We understand that when your car gives up the ghost, you’re likely to need money soon so that you can organise repairs and get back on the road.

Some of the lenders on our panel can send your money on the same day your application is approved. It’s worth noting that the exact time it takes for the money to appear as available in your account will depend on your bank’s policies and procedures.

What’s the difference between a hard and soft credit search?

Soft searches give credit brokers and lenders an overview of your financial history without leaving a mark on your credit file or affecting your credit score.

Hard searches provide a more in-depth view and can remain on your credit file for up to 12 months. Too many hard searches across a short space of time could lead to a decline in your credit score.

Can I get a car repair loan without a credit check?

A responsible lender will always carry out an affordability check as part of the application process. This is usually a hard credit search, but some lenders use Open Banking to understand if you will be able to make your monthly repayments. Whichever method your lender uses, always make sure that they are authorised and regulated by the Financial Conduct Authority (FCA) – you can check this here.

Hard credit checks can be daunting, especially if you’ve struggled with poor credit history in the past. It’s important to remember that these checks are in place to protect you. Being given access to a loan you cannot afford could mean that you struggle to keep on top of or make your monthly repayments, which in turn could lead to additional charges and fees, as well as financial stress and hardship.

How do I repay my car repair loan?

You’ll be required to repay the balance in monthly instalments. Falling behind on or failing to make your repayments could mean that you’re charged additional fees. This information will also be fed back to the credit reference agencies, and your credit score is likely to suffer as a result. A low credit score could affect your borrowing opportunities should you choose to apply for credit in the future.

I’m struggling with money – what can I do?

Unfortunately, many of us will experience money worries in our lifetime. We’re sorry to hear that you’re in this position, but please remember that you’re not alone.

There are various charities and sites dedicated to offering free, impartial help and advice to anyone who needs it, including MoneyHelper, StepChange, Citizens Advice, and National Debtline.

If you don’t feel like speaking on the phone, you can usually talk to someone through a live chat or via email; the important thing is to reach out and get the support you need.