Bad Credit Financing for Engine Auto Repair

Need engine repair, but not sure about the cost? Repairing (or replacing) an engine can be costly, but there’s hope on the horizon, even if you have bad credit. Read on to learn more.

The High Cost of Engine Repair

An engine is often referred to as the heart of the car, and for a good reason. It provides the power needed to get down the road. If it fails, you could face large repair bills. The good news is that you may be able to use a personal loan designed for bad to low credit to help cover engine repair costs.
 
In this article, we’ll go over:

  • Can You Get Engine Repair Financing with Bad Credit?
  • Best Bad Credit Auto Repair Financing for Engine Repair
  • Deciding to Fix or Replace an Engine with Bad Credit
  • Where to Find Auto Repair Shops With Financing for Bad Credit

 

Can You Get Engine Repair Financing with Bad Credit?

Mechanic shops realize that major repairs, like engine repairs or replacements, are often significant, unexpected expenses, so where does that leave you if you have bad credit?
 
Just because you have bad credit doesn’t mean you can’t get financing for engine repair or replacement. Having an imperfect score doesn’t necessarily keep you from getting approved for auto repair financing.
 
Since traditional banks and credit unions often use credit history as a gauge of the borrower’s ability to repay, they may decline consumers with bad credit. However, alternatives exist. Some shops may offer financing options or work with payment solution providers for imperfect credit.

Best Bad Credit Auto Repair Financing for Engine Repair

There are a range of options to pay for car repairs if you have bad credit. The first one is to find a shop that offers payment plans. Some mechanics may offer in-house financing options.
 
There are a few downsides to using in-house financing at a mechanic shop, including potentially a short term to repay the loan. Some shops work with traditional banks to offer vehicle repair financing to qualifying borrowers. However, this may require good credit.
 
Credit cards could also be an option to help cover minor engine repairs, such as spark plugs, ignition coils, or an oil change. However, extensive repairs, like replacing an entire engine, may be too costly to carry on a credit card balance.
 
Some drivers may turn to car title loans or payday loans to cover costs. This usually involves a loan application process and significant fees. For payday loans specifically, there is a tight timeline to repay the loan, usually within two weeks.
 
Another alternative is financing options, like the payment solutions offered through American First Finance. They may be able to help cover the cost of auto engine repairs with no credit required.4

Deciding to Fix or Replace an Engine with Bad Credit

A car’s engine is very complex, with lots of moving parts that can fail. One of the decisions you may need to make is whether to fix or replace an engine.
 
Parts like the water pump, intake assembly, and fuel injectors can be easily repaired. However, critical problems like head gaskets, piston rings, and crank bearings are sometimes just as expensive as replacing the engine.
 
Replacing the engine may come with additional benefits, like a longer warranty. You may also receive a replacement engine that has fewer miles on it than your existing one. It may be a good idea to ask the repair shop about your options, as well as the pros and cons of each.

Where to Find Auto Repair Shops with Financing for Bad Credit

Not all repair shops offer auto repair payment solutions, so it’s helpful to ask about your options before choosing an auto repair shop or mechanic. Starting your search with a mechanic or shop you or a family member already trust can be a good starting point.
 
You may be tempted to take your car to a dealership for repairs, but this isn’t always the best choice. Smaller repair shops sometimes have more flexible payment options, as well as more flexibility with repairs as they can install used or aftermarket parts. Dealerships may utilize OEM, or original equipment manufacturer, parts due to liability concerns, which may limit flexibility around cost.
 
Before picking a shop, be sure to ask questions like:

  • Do you offer car repair financing for imperfect credit?
  • How much will the repairs cost?
  • Is there a warranty on the work done?
  • How long will the repairs take?

Getting answers to these necessary questions before having work done may help alleviate some common challenges before starting repairs.
 
Need an auto repair shop that offers financing for bad credit? Use our convenient tool1 to locate a shop near you.

Conclusion: Don’t Let Repair Costs Keep You Off the Road

Getting your car’s engine fixed doesn’t have to feel like a major financial burden. With payment solutions through American First Finance, you can apply for $300 – $5,000 in auto repair financing.
 
Getting approved for a bad credit auto repair loan or installment agreement may help reduce the stress of auto repairs and give you some freedom to choose the right repair option for your vehicle.

 

FAQs About Bad Credit Engine Repair Financing

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Can I get financing if my credit score is 580 or below?
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How much do engine repairs cost?
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Is a credit card or a personal loan better for auto repairs?
© 2026 American First Finance. All Rights Reserved.

1 Application Terms: Your application, including the amount, cost, and approval, is subject to review and is not guaranteed. Applications are reviewed based on data you provide and one or more of the following: identity verification, bank verification, information from a third-party, a credit reporting agency, and/or prior experience through American First Finance (AFF).

Bank Loan: A consumer installment loan is originated by FinWise Bank, a Utah-chartered bank, Member FDIC and sub-serviced by AFF. The loan may be funded by the bank to the merchant for you to purchase item(s) and/or service(s). In some cases, the loan for returning customers is funded directly to your checking account for personal, family or household use.

Retail Installment Sale Agreement: A retail installment agreement is not a loan. You may enter into a Retail Installment Sale Agreement with the merchant to purchase item(s) and/or service(s). AFF may purchase the Agreement from the Merchant. An example of a retail installment transaction based on a 12-month term with 26 biweekly payments: if you make a purchase of $1,000 and make a $50 down payment with an Annual Percentage Rate (APR) of 169.53%, you will have 25 bi-weekly payments of $74.79 and 1 bi-weekly payment of $75.06. The total amount repayable will be $1,944.81 with full, timely payments over 12 months.

Lease: A lease is not a loan or credit transaction. It has several names: lease, lease-to-own, rent-to-own, or rental-purchase. With a lease, you select the item(s) and AFF purchases the item(s) from the Merchant. You take the item(s) home. AFF retains ownership until you pay for the item(s) plus rental fees. Other fees may be included, such as late fees, non-sufficient funds, delivery, and optional Liability Damage Waiver fees. As a result, the total amount you pay for leasing an item may be more than double the retail cost. You can cancel your lease at any time without penalty by contacting AFF. An example of a 12-month lease with weekly payments: if you lease a $1,000 item and pay a $50 (plus tax) processing fee, you will have 52 additional weekly rental payments of $46.11 to complete your lease. Your total lease payments will be $2,452.21 with full, timely payments over 12 months.

2 You will save money on interest, finance charges, or leasing fees when you pay the discounted amount during the Early Payoff Discount (EPD) period or by exercising the Early Buyout Option (EBO). You must make payments larger than your regularly scheduled payments by the EPD/EBO expiration date. You will make additional payments through the customer portal or by contacting the customer service team.

3 Decisioning may take additional time and not be same day. Additional information may be required.

4 Approval is possible without a credit score, but credit may be checked.

5 Testimonials reflect the real-life experiences of customers who used our products and/or services. Individual results may vary.

To report a problem or complaint with this lender, you may write info@americanfirstfinance.com or call customer service at (855) 721-1188.

American First Finance, LLC – NMLS ID 1757007

© 2026 American First Finance. All Rights Reserved.