Credit car loans are widely available these days and offer consumers the opportunity to borrow money for their next car. However there are a few essential issues you need to consider before you take out a credit car loan.

Repayment Schedule

You need to check the repayment schedule carefully before you sign up to any loan. You must make sure you know exactly what you have to pay back each month on the loan and when it needs to be paid by. For example if you get paid on the first of the month then a loan which schedules repayments on the last day of the month will not be very convenient for you. Talk to the lender and ask if you can change the repayment date so that you can be sure you have enough money to cover these costs each month.

Missing payments will incur late fees and this can soon add up. Also if you constantly miss payments then your lender would be within their right to cancel your repayment schedule and demand the loan back in full. This can put a lot of pressure on your finances and if you were unable to pay back the money demanded then the lender could take you to court. This can be a very stressful situation so make sure you understand the loan schedule and make sure it is right for your circumstances before you sign up.


The majority of consumers have heard of APR but don’t really understand how it affects them. APR basically tells you at what interest rate you can borrow the money you need. In general lower APR deals are desirable as they can mean you pay back less money on your loan. However APR is just one indicator of whether or not the loan is a good deal so you do need to look at the product as a whole. For example many low rate APR loans are only offered over long-term payment schedules (3+ years). This means that although you have a low APR it could cost you more in interest because you will be paying the money back for longer. In this respect a higher rate APR loan that is available in a short term (12 to 24 months) can actually be more cost effective.

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Credit car loans are available for consumers to help you fund the purchase of your next car. It is important to shop around and find out exactly what you will be signing up to. This will help you to pick a loan that can offer you a great deal and also a convenient and manageable repayment schedule.