It is good to know that those with a bad credit score can now get instant catalogue credit with an online catalogue such as Freemans, Simply Be or Very.co.uk to name just a few. The instant credit catalogue is now becoming a major part of most people’s finances for their ease and convenience, and they would be reducing their customer accounts immensely if they only ever looked after those with perfect credit scores. Having a bad credit score does and should not mean that you are blacklisted forever where credit is concerned. It may mean that you have to rebuild your file and show commitment again, and a bad credit catalogue account is the perfect way to start.
There is a huge difference in interest rates amongst the online catalogues, but the majority will offer bad credit catalogue applicants instant credit with a period of interest free repayment options. The higher the interest rate the more likely you are to be accepted is a general rule to be found, but if you keep your payments in line with your statements then these interest rates should not apply.
The highest rates are to be found with the rent to buy catalogues such as Dial-a-TV or Brighthouse, at 69.9% APR. You will also find that these retailers will not offer any periods of interest free payments, and the interest is included in each payment upfront, so you will know from the beginning the final amount payable. Often there is no ability to repay early either and too often you may find you are stuck with your original payment plan.
If you can wait a while before purchasing larger more expensive items, this can be achieved with a credit catalogue such as Littlewoods, Grattan or Fashion World, with much lower interest rates from 34% APR Over time your credit spend limit will increase with your steady repayments helping to show your ability to repay. This type of catalogue will also offer buy now pay later terms, sometimes delaying any payments for up to 2 years. This is why it is very important to look at the interest rates as you could find yourself paying over double to original price of the item in some cases.
The lowest rates to be found are often from the retailers who are more selective in their credit searches and will often refuse CCJ’s on a credit file are John Lewis, as they are backed by MasterCard and have a credit card account at only 18% APR. This is a great card to have as it has a very high spend limit and you are not tied to one account, you can also use the card at most other retailers, online or not. The Next group, well known on the High Street have had an online catalogue for over 10 years now and offer a very good interest rate of only 22.9%APR, you can also use your Next Direct Card account at your local Next store.
Whichever Bad Credit Catalogue you choose, the most important thing to remember is to make sure your payments are in full and on time. This is the only realistic way that your credit limit will increase, and your credit file can rebuild over time.