More and more credit catalogues are emerging these days, and the number of people using them is increasing by the day. While they have been around for decades, credit catalogues have become very popular over the past few years. The fact that more people are noticing the benefits of using them has contributed to the drastic increase in their popularity. The number of bad credit catalogues which specifically target people with poor credit ratings is also increasing. Most catalogues offer the Buy Now Pay Later options which are luring a lot of customers.

If you are thinking of signing up with a credit catalogue, it is important first to know the benefits and drawbacks that come with using them. So to help you make an informed decision, here are the top pros and cons of using credit catalogues.

The Pros of Using Credit Catalogues

• They have a wide range of products

Almost everything sold in a regular brick and mortar or online stores is available on credit catalogues. From fashion products, home décor stuff, furniture, to electric appliances, there is nothing you won’t get on credit catalogues.

• They offer various incentives

There are so many credit catalogues these days that there’s stiff competition for shoppers. This is the reason we are seeing many of them offering various incentives in a bid to lure customers. Some of the most frequently offered incentives include coupons on different products, huge discounts, and various deals and promotions.

Again, many catalogues are now offering customers free delivery services. This means you can shop at the comfort of your couch at home, and have the items delivered to your doorstep. This saves you a lot of money.

• They provide a great opportunity for rebuilding your credit score

If you have had previous delinquencies that have significantly hurt your credit score, signing up with a bad credit catalogue, shopping with them, and paying your bills on time is a great way to start rebuilding your credit rating. You have the opportunity to prove to them and other lenders that you are capable of paying your bills promptly. If you don’t miss payments or make late payments, your credit rating will gradually improve.

• They have interest-free periods

Credit offered by many credit catalogues is typically interest-free. This means that within a certain period, usually between three and twelve months, your monthly installments do not include interest. Therefore, if you can pay the total amount owed within that grace period, the cost of the goods bought is similar to when the items are bought without credit. However, when the interest-free period elapses and you have not completed payment, then your monthly installments will include some interest.

• Guaranteed approval

With a bad credit record, it is almost impossible to get credit on goods from a regular store or traditional lenders. This isn’t the case with credit catalogues. Many bad credit catalogues guarantee 100% approval, implying that even with a poor credit rating, you can still get goods on credit. In fact, some bad credit catalogues have no credit checks.

• A wide range of payment options

You don’t have to pay the full costs for items at checkout. Credit catalogues offer customers a wide range of payment options. You can choose to spread the costs of your items over many months or weeks, so you get to pay in small installments. There are even catalogues that allow shoppers to choose when they can start making payments. This flexibility minimizes defaults.

• Simple application processes

Opening an account with a credit catalogue is simple. You only need to be over eighteen years old, have a valid bank account, a permanent address history, and a regular income source. The application processes itself is easy, and you typically get a response within minutes.

The Cons of Using a Credit Catalogue

• Longer payment periods means more cost

Some credit catalogues have payment periods that exceed two years. Usually, longer-term credits come with interests as high as 60% or more. It is therefore advisable to avoid signing up with such credit catalogues.

• You can easily be lured into buying more

You need to have some levels of self-restraint when shopping with a credit catalogue because it is very easy to start purchasing too much. This increases the chances of you not being able to pay on time or missing payments. Consequently, your credit rating will get poorer, and if you are completely unable to pay, the catalogue can even file a lawsuit against you.

• They can affect other things in your life (if you don’t pay as required of you)

Some of the things that can be affected include your employability, your insurance premiums, getting utility services, interests on credit cards, et cetera.

This is especially the case if you miss payments or delay your payments. You see, these days, almost everyone, from the landlord, the potential employer, to the utility service company checks your credit score. If you have previously used a bad credit catalogue and unfortunately made one or two delayed payments, this will reflect in your credit record.

You will find it difficult to even rent an apartment because the landlord thinks you are not a financially responsible person. The potential employer will think you are not a good fit for that job that involves handling money. The utility company will think you won’t be able to pay your bills every end of them, and so on.

However, note that all this will often be a result of you either missing your payment, paying late, or entirely defaulting your credit catalogue repayments. If you do everything right, then you do not have to worry about such consequences.

Credit catalogues are here to stay, and more and more people will continue using them. As seen, they come with a lot more benefits than drawbacks, and if you make payments as required, you are sure to have an amazing experience shopping with them. So you should probably consider signing up with one today, especially if your credit score isn’t that good. However, be sure to do some background checks and only open an account with a reputable catalogue.