Best Auto Repair Loans

SoFi is one of the few lenders that offers truly fee-free personal loans. While some lenders skip most fees, they may still charge you for late or returned payments. SoFi doesn't charge either of those. 

However, the minimum loan amount is $5,000, which makes the lender worth considering only for major auto repairs. The minimum interest rate is competitive with other top personal loans, while the maximum rate is relatively low; SoFi also offers a 0.25% discount on your interest rate if you set up automatic payments. 

Loan funds can be disbursed as soon as the day you’re approved, but it can take up to a few days for some borrowers. The lender allows joint applicants, so you may be able to get approved with someone else if you can't qualify on your own. Applications with a co-borrower may take one to two weeks longer. 

SoFi doesn't disclose specific minimum credit or income requirements, but like many lenders, it does allow you to get pre-qualified with no impact on your credit score. You may need a pretty good score to be approved—the weighted average score of SoFi borrowers was 747 in 2022, according to the lender’s annual report.

PenFed offers several features that make it attractive for auto repairs, regardless of the cost. Its minimum loan amount is lower than most lenders, and even if your credit isn't perfect, the maximum APR is low compared to other personal loan options. Keep in mind that you won't get a discount on your rate for setting up automatic payments, like some other lenders.

The lender also doesn't charge an origination fee, but there is a $29 late fee if you miss a payment by five days. 

PenFed doesn't disclose its credit or income requirements up front, but you can get pre-qualified with a soft credit check, which won't affect your credit score. Also, if you can't get approved on your own, you can apply with a co-borrower to improve your odds.

If your credit is less than stellar, it can be difficult to get approved for a personal loan. Upgrade’s loans are geared toward borrowers with bad credit and above, with a minimum recommended credit score of just 560 (according to customer support). What's more, you can get pre-qualified with just a soft credit check, and if you can't get approved on your own, you can apply with a co-applicant.

Upgrade may allow you to use your car to secure your loan, which could help you qualify for a lower interest rate. Other ways to get a lower rate include setting up automatic payments—Upgrade doesn't specify how much of a discount you'll get—and having an Upgrade Rewards Checking account, which could reduce your rate by up to 20%. 

One area where Upgrade falls short is in its origination fee, which ranges from 1.85% to 9.99% of the loan amount. Upgrade is far from the only lender that charges an origination fee, but its maximum fee is high compared to other options. Still, these kinds of fees are typical for loans for bad credit.

Upgrade offers fairly low minimum loan amounts, so depending on how big your repair bill is, you may not need to borrow more than you need. Funding generally occurs within one business day of approval.

If you only need money for a small repair, you can borrow as little as $500 with First Tech. The lender's maximum rate is low, like other credit unions, and you won't have to worry about an origination fee eating into your loan disbursement. 

While the lender doesn't disclose specific income requirements, its minimum recommended credit score is 660 (according to a customer representative). You can get a rate quote with just a soft credit inquiry. And if you can't get approved on your own, you can add a co-signer to your application. The credit union also offers loans you can secure with a savings account or stocks.

Once you're approved, funds will typically be sent on the same day or the next business day.

If you need money fast, Rocket Loans can fund your loan on the same day you apply, as long as you complete the process by 1 p.m. ET on a business day. That said, the lender charges an origination fee of up to 8%, which can be expensive. 

Rocket Loans offers pre-qualification with a soft credit check, but you can't apply with a co-signer if you're unable to qualify on your own. 

The lender's minimum interest rate is relatively high, but you can get a 0.30% discount if you set up automatic payments—a bit bigger than most other lenders provide. The minimum loan amount is relatively low among personal loan lenders, but still may be too high for some auto repair needs.

Upstart offers a low minimum interest rate compared to other top personal loans, making it an excellent choice if you have great credit. However, the lender offers loans across the credit spectrum, including borrowers who have a limited credit history.

Keep in mind, though, that Upstart's maximum interest rate is high, and there's no way to get a discount on your rate. Additionally, the lender may charge an origination fee of up to 10% of the loan amount, the most expensive origination fee on our list. 

Upstart provides relatively detailed eligibility criteria, and you can pre-qualify with a soft credit check. However, you can't add a co-signer to your application to improve your odds of getting approved or securing a low interest rate.

If you do get approved, Upstart can fund your loan in as little as one business day.