If we need to get our cars repaired then we often find that it can be expensive. Not only do we have to pay for the parts but also pay the person to fix it and then they will often find other things that need fixing s well and the price can really escalate. This means that it can become unmanageable with regards to finding the money to pay for it. Therefore we may look to borrowing to pay for it and consider using a credit card.
The way a credit card works
Many people do have credit cards but it is still worth having a full understanding of how they work. The cards are often used as a convenient way of paying or things without much thought about the costs of them and how they actually work. If you have a card you will be aware that when you buy things using it you do not have to pay for them right away. You will get a bill and then be given a certain time to pay it by. You will be given the option to pay just a minimum amount which will usually only cover the interest and charges on the card and possibly a little more. Or you will be able to pay off the full balance if you prefer. There is also the option to pay off any amount in between this as well.
Cost of using a credit card
Every time you do not pay off the full balance of your credit card you get charged interest on it. These costs can really escalate. However, card companies make it hard for us to pay it off as they seem to only give us the option to pay off all that we owe or the minimum amount. We can pay off something in between, which might more affordable than the full balance and will mean that we will not have to pay so much interest and we can get nearer to paying off the debt. Of course it in their interests for us to keep the debt as long as possible so that they profit more from us. They also make it easy for the debt to build up because so many shops accept credit cards and it is more convenient to use them compared with cash.
Credit cards vary in the amount that they charge and it is important to be aware of how much you are paying for yours if you are not clearing the debt each month. Of course if you do clear the debt each month then using a credit card can be a great advantage to you. You get longer to find the money to pay for things and if you set up the timing on the billing well, you will have just been paid when the bill comes in which will make it easier to pay.
Is there an alternative?
So if you use your card wisely then it can be a great way to pay for the repairs. If you use it and then pay the card off in full when you get the bill, then you will not pay anything out in interest, However, you may be able to afford to do this and this is where things can get tricky.
To start with think about whether you need the repair right now or whether you can wait until you have saved up for it. Maybe you can go without using the car for a while or maybe it will be safe enough to drive without being repaired. If you are not sure about how safe it is then do not risk driving it as you could end up regretting it. You could check with the garage that you are going to get the repair from as they should be able to tell you.
If you have any savings then use these to pay for the repair as it will be a cheaper way of funding it than a loan. If you do not have savings then you may be able to get an advance on your salary to cover the cost. Alternatively a different type of loan might be cheaper. Compare the costs of different loans to see, if you do borrow the money, which will be the cheapest for you. Even with a credit card you may find that there are cards that are cheaper than yours. It is therefore good to do a bit of research and make sure that you are not paying out more than necessary as even if you do use a credit card and do not pay off the full balance you could still pay less than you will with your current card. It should not take that long for you to find out either.