Credova is a unique Buy Now Pay Later (BNPL) services company since it will finance BNPL loans in the gun and firearms industry. This has given the company a bit of notorious reputation.
Credova has come under scrutiny from customers that have used it’s BNPL services claiming they charge outrageous interest rates and fees. Even though the company advertises a “Zero Interest” Pay in Four financing plan. So I was interested to know what actually are Credova’s Interest Rates?
Credova Interest Rate(s)
Digging into Credova’s terms I believe I have found the gotchas.
If you use the simple BNPL Pay in Four service Credova claims that the interest rate will be 0%. Credova offers 3 months interest free which is essentially 4 payment loan.
Digging in more, I believe I found the issue most people run into is using the longer payment options of 12-months. These Long Duration loans as Credova calls them, carry higher interest rates.
If you are financing up to $10,000 dollars through Credova over 12-months you will pay 17.99% annual percentage rate (APR). Credova allows you to pay these types of loans up to 60-months.
If purchase is under $5,000 dollars and 24-months or less expect to pay 35.96% APR.
Credova will not always offer to finance some purchase and items in Pay in Four with Zero Interest or at all. So I believe this is where a lot of customers get stuck paying Credova’s high interest rates without understanding the terms.
The company also clearly states in it’s disclaimers section, Your rate will be 0–99% annual percentage rate (APR).
Hmmm ok, that is a pretty big swing in possible interest rate. It’s not clear why the APR would go as high as 99% or how they determine which rate to charge you. I wasn’t able to see anything on the website stating why it could as high as 99%.
Thoughts on using Credova
While you might be a gun supporter or gun control advocates, I don’t like predatory lending practices. This is why I started DimeScout to educate people about the BNPL space so they can make smart financial decisions.
I would personally NOT use Credova after seeing all the complaints on Reddit, various gun forums, Twitter, and other review websites. After trying to understand these financing terms I am even less inclined to use Credova.