Though they’re convenient, cars require a great deal of upkeep. Unexpected car repairs are costly and difficult to budget for. Unfortunately, many people caught off guard by car issues experience financial strain.
In emergency situations, many people turn to credit cards. Using your credit card for car repairs is certainly an option. In fact, it may be to your benefit.
Before using a Credit Card
Generally, it’s not a great idea to put large purchases on a credit card. This can increase interest and make it difficult to pay your balance. This is still true with car repairs.
It’s important to be careful when paying for car repairs. Use a card only if you feel confident that you can pay in full quickly. If you can’t, you may face significant additional charges.
Protection
Using a credit card can protect you. If your mechanic tries to scam you, cards often cover losses. You wouldn’t be able to get cash back in this scenario.
Because there are many independent auto shops, fraud is unfortunately a common problem. It’s important to be cautious when paying for auto repairs. Credit cards can help protect you from expensive losses.
Credit cards also indicate a history of your car’s maintenance and updates. Showing receipts can back your car’s value if you resell it. Potential owners like to see that you’ve stayed on top of upkeep.
However, do not use a credit card if you can’t afford the repairs. For large purchases, it’s important that you pay the money back before your due date. Interest can create a large balance very quickly.
If you can afford the repair, it’s usually worth it to use a credit card. This offers protection, peace of mind, and added perks. Just pay the balance right away.
The Best Way to Make Payments
Ultimately, your ideal payment method depends on your situation. If you can afford the repair, take advantage of your credit card perks. If you cannot afford it, look for a traditional line of credit.
If you’re somewhere in the middle, opt to pay with a card. One or two interest payments may be worth it for you. In most cases, the protection outweighs the risk.
Is There a Credit Card for Auto Repairs?
Some cards offer rewards for auto repairs. However, there aren’t dedicated auto repair cards as with other specialty cards.
Some mechanic shops offer lines of credit to cover costs. You may also want to check with your bank for a personal loan.