Everyone has a blip in their finances every now and then but that should not stop you from gaining credit with an online catalogue. Not every catalogue out there will offer you credit so it is important to know the ones that give you more chance of being accepted before you start to apply as often, rejected applications can give a black mark against your credit file, thus making it harder to be accepted for credit in the future.
If you have been accepted for a catalogue, even with bad credit you are then able to start to rebuild your credit file positively as long as you keep on top of all repayments at the right time. You will find that once you have been paying your account well, you will then be offered higher credit limits over time. It is not beyond the realms of possibility that over the course of a year, you can have your credit limit extended to over £1000 from a small starting limit of £175. The regular online catalogues are mainly clothing and fashion catalogues but many now have home and garden sections now that do cover a lot of larger items, but with a low initial credit limit you may not be able to purchase higher priced products until your credit limit has been raised. Fashion World is an excellent bad credit catalogue that covers both fashion for all the family plus a great home and leisure section. If you are looking for larger and more expensive home electrical or furnishings then you will need to try a rental catalogue, such as Brighthouse or Dial-a-TV.
In our experience the higher the interest rates, the more chance of being accepted with bad credit. Brighthouse and Dial-a-TV have the highest interest rates at 69.90% APR and they are the most likely to accept bad credit applications. With these two bad credit catalogues the interest is charged from the moment you purchase and there is no option for interest free periods. They will provide you with home furnishings and large home electricals like the latest smart TV or washing machine, as well as furnishing for every room in the house. Brighthouse are one of the catalogues that also has High Street stores and when applying for credit with them they will possibly ask you to go to their nearest store with your paperwork and a few personal references. Brighthouse will not use your references as guarantors, but the fact that they hold numbers and addresses for close friends and family is often enough to make sure that you make your payments on time without them having to contact anyone and discuss the account.
Fashion World (another Bad Credit Catalogue) comes in at a lower APR of 58.7%, with no interest payments being charged as long as your account is paid on time, they also offer instant credit in many circumstances, and those with bad credit often will be accepted with little fuss but be offered a low credit limit to build trust to start. Fashion World are part of the JD Williams Group and you may find that once you have been accepted for one of their catalogues you may well be accepted for others, such as Marisota and Premier Man, these also have a 58.7% APR. The Fashion World catalogue offers it customers long periods of interest free, and also great delivery and returns, that are easy and cost effective. For those who want to rebuild their credit history, or even start a credit file then this catalogue is probably the best one to go for initially.
The next bad credit catalogues to consider are Studio and Ace.co.uk, these are Bad Credit Catalogues that offer home and gift products and have a smaller home and fashion section. Their APR is 41.2% and they offer interest free periods with flash sales over the seasons. Moving down the interest rates to 39.9% APR, you will find JD Williams, Curvissa, La Redoute and Very.co.uk, you may find that once you have been accepted for one you will be accepted by all, but this is not necessarily a good thing if you have been caught up with credit payments before. In our opinion, it is better to stick with one account at a time and pay it off in full before you attempt to find further credit.
The online catalogues that you will need a good credit file to obtain are amongst the lowest APR rates, such as John Lewis, they use a credit card system and the interest rate is only 18.9%, with a John Lewis card, you will have a higher credit limit and you are also able to use the card in most other stores and for cash withdrawal. This is good, but you can also find other credit cards that do the same with a lesser APR. The Next catalogue is also one that will only accept fair to good credit history, their APR is 22.9%, they also offer interest free periods and have a yearly delivery discount scheme. The well known high street Argos store has now become one of the online giants offering credit at 29.9%, but the chance of being accepted with a poor credit history is very little. If you apply for one of the lower interest rate catalogues and find you have been accepted, then your credit file may not be as poor you believe. In which case it may be better to opt for a credit card with very low interest rates and purchase your goods more cost effectively with that.
There are many options now for those with bad credit, and the online shopping world may just be the best place to start to rebuild, but it is very important to know that if you are taking longer to repay than originally thought then this is where the interest rates come into full force, and it wont take long before your monthly payments are spiralling out of control- This is particularly important with Bad Credit Catalogues. As with everything in life, sensible spending and budgeting is the key.