Through these rough economic times, we fall short sometimes of cash, which makes us think twice before buying stuff that we want whether it’s a fashion item, a new home appliance or anything else our heart desire. In addition, sometimes we prefer to shop without leaving our doorstep, and that’s where the online shopping comes in place.
So, what if there is a way that can help you buy now and pay later? And in the same time you can shop from the comfort of your own home if you choose to. The answer to your prayers will be credit catalogues, which allows you to buy whatever your heart desires and pay in weekly or monthly installments.
Catalogue credit is a service provided by many retailers in different fields, which allows you to create a personal account to buy now and pay later for your items on credit, whether in monthly or weekly payments. Initially your account is limited at first, and you can increase your limit by keeping up with your payments; to increase your Spending power and improve your credit rating.
Catalogue shopping accounts popularity have skyrocketed lately due to a couple of reasons, including the opportunity to get instant credit approval for your purchases to buy whatever you want whenever you want and in the same time you have extra time to pay off your balance without worrying about money. In addition, the variety of products including fashion, electronics and more that you can buy using the payment method of choice makes catalogue credit more appealing to different shoppers.
There is a couple of well-known catalogue companies in the market, and some of them offer catalogue credit, which is referred to sometimes as a shopping account.
There are number of online catalogues such as Next, Simply Be, Littlewoods, Studio and Very, which offer a variety of products you can choose from. But always make sure to buy what you really need; not to find that you have to pay a large amount of money for a luxury item not worth the burden. As you mustn’t squander your money around, You don’t want to end up paying 3 month’s salary for a luxury item you don’t even use!
Online catalogues shopping gives you the benefit of comparing the price of the same item, so you can choose the best suitable offer that suits you.
Some catalogues offer discounts and more, and a number of them offer catalogue credit with no interest what so ever as long as you repay the price of your item within a time frame specified by the company itself, usually less than a year. However, you have to make sure to check the terms and conditions carefully; as some catalogues demand additional cost case of late or missed payments, so ensure you pay in time.
Choosing to buy via catalogue credit could be an advantageous in many cases; but choosing carefully and checking catalogue terms and conditions could protect you from paying more than what you already had in mind.
Catalogue credit could be beneficial especially if you are offered interest-free period, so you can pay your balance through this period without the extra cost. Moreover, Catalogue credit can be more affordable easy way for buying your necessary items.
On the other hand, if you are not punctual in paying your balance you could pay a lot more than the item worth; as you will have to pay high rate interest when delaying your payments. Also missing a payment can be a problem affecting your credit rating.
However, you have to be careful not to fall in debt while shopping from catalogues with credit, as it’s easy to be tempted to buy a lot of items that you can’t afford paying for on time. That could lead to applying interest on your payments, to find yourself stuck with a big balance you have to repay, ultimately affecting your credit rating and your future borrowing ability from other lenders.
Some catalogues will try to convince you to buy credit insurance in case of losing your income source or if the item is damaged, but in most cases it’s extra money you probably don’t need to pay, so think carefully before accepting this offer.
How to apply for catalogue credit?
Before applying for an account you have to determine what is best for you, whether it’s paying weekly or monthly. You can probably decide this matter according to how frequent you get your income, if you are paid monthly then it’s better to pay credit monthly, or you can choose weekly credit if you get your income in a shorter time cycle.
After choosing your preferred payment method whether it’s monthly or weekly, you will have to select the catalogue you want to apply to, and fill the application often with some basic information such as name, address, phone number and so on.
After completing the previous step, your credit will be checked based on your credit rating (credit score), and your application will be accepted if you scored enough points. Your credit rating is determined based on the information you provided in the application, and details that the credit reference agency passes on.
After checking your credit there are two case scenario; whether you are accepted or rejected. In the first case, you will be offered catalogue credit limit that vary according to whether you are a first timer or else; then it’s time to shop! You can buy new stuff from the catalogue within your catalogue credit.
Some catalogues offer you gifts or discounts when you open an account for the first time, and they often offer their customers regular ongoing promotions, and some offer free gifts and offers in special occasions like birthdays.
When you repay your payments in time, your credit score and allowance will increase so you can buy more stuff. But what if you are rejected? In that case, you are eligible to Bad credit catalogues that is used in the case of bad credit rating; it allows you to build your credit score by repaying your payments in time, what could lead to increasing your credit limit and increasing your spending power to improve your credit rating.
In contrast, having a good credit rating does not necessarily gives you access to a catalogue credit account. Even though it may help your application, you have to have a financial mean proofs that you are capable to paying your monthly or weekly payments in time.
Bad catalogue credit
As we mentioned, in some cases you can be rejected when applying for a catalogue credit due to low credit score. In that case, you have to make sure first that you added correct credit details and that you are registered to vote, in addition you have to check your bills history and make sure that you did repay them on time.
If you accepted to a bad credit catalogue, you will have to improve your score through buying and repaying your payments in time; to enhance your position. As a consequence for being accepted to catalogue credit while having bad score, you will most likely be given a higher than average interest rate and a lower credit limit.
Catalogues tend to have much higher acceptance rates than other lenders like credit card providers and mobile phone networks, which makes them great to start rebuilding your credit history. Some catalogues are more forgiving than others when it comes to approving accounts for people with bad credit; although that does not mean that you will get accepted in these catalogue if you have a very bad credit history.
The benefit of these bad catalogue credit that they allow you to track how much you owe easily; but you have to be extra cautious not to miss any of your payments.
Improving your credit rating
If you have a bad credit score, there are a couple of ways to improve this situation that includes:
• Make sure that your name is registered on the electoral roll
• Check your file details for any mistakes, and report any incorrect information to the credit reference agency credit reference agency provide feedback to catalogue companies; to help them evaluate your credit account and your ability to pay off your payment
• Check if you are linked to another person in a joint account, because the other person bad rating could affect your personal rating negatively
• Remove any existing debt before applying for new catalogue credit
• Having a home that you lived in for a good amount of time makes you appear more reliable
How to keep a good credit score
To make sure that you get good credit rating and not falling in the bad credit criteria you can follow some simple actions such as:
• Paying your bill on time and never miss any payments even it’s a small one
• Do not apply for multiple credit applications at the same time; as you may appear that you are having difficulties getting cash
• Using a credit card every now and then to repay your account balance on time, will form data that will be a part of your credit history -creates your credit report- and that could make you seem more reliable when applying for catalogue credit.
Increasing your catalogue credit limit
Credit limit can differ according to your membership and credit score, and your credit status can benefit from higher credit limit. Usually catalogue credit accounts are reviewed constantly (most of the time every 3 months), so you have to keep a good rating to be qualified for increasing your credit limit; so you can buy more items or expensive items. In addition, some catalogues companies allow customers to ask for increasing credit limit, as they will review your account in a special department to figure out if you are qualified for credit limit increase. In most cases, using your catalogue regularly while repaying on time improves your chance of increasing your credit limit.
If you find that the new higher credit limit is beyond what you can afford, you can refuse this action by calling the company to go back to your original limit.
Ordering from catalogue with credit
Placing an order to buy an item from your catalogue is simple, just view your catalogue or website and chooses the item you want, and all you have to do is order it through calling the catalogue company or finish the steps on the website.
Repaying your catalogue credit
For monthly catalogues the amount you have to pay every month depends on a number of factors that includes the price of the item itself, the number of month you are supposed to repay within -Some catalogues offer repayment period up to 3 years for more expensive items- and the interest rate applied.
You can pay for your items using a credit/debit card or through spreading the cost on your pay monthly catalogue account.
After ordering, the catalogue company will send you a statement showing items bought and your balance, and it will show payment history and the amount left in your catalogue credit.
Instant credit catalogue
Catalogue companies usually report your account to three credit offices, and they offer instant credit catalogues to customers with good credit history.
When applying to instant credit catalogue you will have to fill an application with your basic details, and the company will review your account right away to make the decision to offer you instant catalogue credit or not.
Buy now pay later
Another way to purchase from catalogues is to “buy now pay later” method. In essence, some catalogue companies allows you to purchase the item now and pay over a specific period determined by the company. Some companies offer this option when you spend more than a specific amount of money.
This option is ideal for people who want to allocate their funds to several purchases, and different catalogue companies are offering this payment method with different terms and conditions.
In case you decide to choose to purchase using this option, you will be offered a time period to repay your balance, this period could be up to a year; however you have to pay your balance before the given time ends. In case you missed your payment period, you will have to pay an interest rate, which dated to the time of your purchase, hence increasing your balance. Before choosing this option, you have to make sure that you are aware of your catalogue terms and conditions to avoid adding extra balance to your account -due to failing to pay in time. You have to check the interest-free period that is given before you are required to pay an extra interest; which is determined when you make a purchase.
Paying your balance before due date can help your credit rating, so try to make good use of it. When you apply to buy now pay later option you will have to fill an application, usually with basic information so that the company could check your credit history to decide whether to approve you or not.
Advantage of buy now pay later option
• There is no need to have good credit rating to use this method
• This option helps your credit rating in case you paid your balance before due date, besides it could help your poor credit score
• You can be accepted even if you have credit issues
• If you managed to pay your account before the time due, you can avoid paying interest
• Buy now and pay later is considered the best options to buy the stuff you want, when you are obligated to get a new item and you don’t have enough funds.
You have make sure to repay the whole balance during the free-interest period; not to find yourself obligated on paying extra interest on a very small amount of money.