Catalogues with credit are becoming very popular these days, and many shoppers are now using them. They have been around for years, but statistics show that their popularity has grown drastically over recent years. One of the major reasons for this drastic increase is that shoppers are realizing the benefits that credit catalogues offer. Again, the catalogues are offering irresistible deals to shoppers. For instance, the Buy Bow Pay Later option now offered by many credit catalogues has attracted a lot of online shoppers.
There has also been an increase been an increase in the number of No Credit Check catalogues and bad credit catalogues, which target shoppers with poor or no credit ratings. While using catalogues has a few drawbacks, it comes with a lot more benefits. If you have been contemplating opening an account with a credit catalogue, in this article, we will give you the top six reasons to go ahead and do so today.
Why You Should Use a Catalogueue with Credit
1. They offer a variety of products (on credit)
Credit catalogues stock everything you can find in a regular online or brick and mortar store. You can shop for clothes, shoes, phones and accessories, jewelry, home décor products, furniture, et cetera. Many credit catalogues sell a variety of products while some sell specific items. For instance, some catalogues sell electronic and home equipment only, while others stock children’s clothes and shoes only.
2. They offer incentives that can save you money
There are so many credit catalogues out there, and therefore, there’s competition for customers. So most catalogues offer various incentives to try and get as many customers as possible to sign up with them. For instance, most credit catalogues offer discounts and coupons for various products. Some offer free delivers for goods worth a specific amount while others deliver goods worth any amount for free.
Taking advantage of deals, promotions, offers, and coupons can save you a lot of money. Again, with free delivery services, you get to place orders at home at the comfort of your couch and have the goods delivered at your doorstep without paying a penny more.
3. Guaranteed approval
When your credit rating is poor, it can be quite challenging for you to get good on credit, let alone acquire a loan, from lenders or any regular store. Credit catalogues, especially the no credit check and bad credit catalogues guarantee 100% approval. This means that even if you have no credit history or you have a poor credit score, you can still be approved for credit. No credit check catalogues do not even check your credit rating. They aren’t concerned about your past credit history; they’re concerned about building a good business relationship with you.
It is, however, important to note that most credit catalogues limit the shopping they approve customers for. Once your application has been approved, you will be granted a purchase limit of, for instance, £500. In case you impress by making regular payments regularly and promptly, your credit catalogue can increase your limit to, say, £2500 so you can shop for more items.
4. Credit catalogues have different payment options
In a bid to limit defaults, credit catalogues offer customers a variety of payment options. A shopper doesn’t have to pay for their items at checkout. While you are still allowed to complete payment once you purchase your goods, you can choose the but-now-pay-later option that allows you to pay at a later time. Some credit catalogues allow shoppers to delay payment for over 12 months.
Again, you can decide to spread your cost over several months so that you pay in small monthly installments. By choosing the payment option that works best for you, clearing your debt becomes easier.
However, bear in mind that a catalogue credit is just like a bank loan. If you miss payments, your credit rating will be hurt just like it would if you missed repaying a bank loan. And in case you default, the credit catalogue can file a lawsuit against you.
5. Credit catalogues offer shoppers interest-free periods
The credit you get from a credit catalogue is typically interest-free. Most catalogues offer shoppers an interest-free period of between three and twelve months. In this period, your monthly repayments do not include interest. This implies that if a customer manages to clear the debt owed within the interest-free period, they incur no extra costs. The total amount paid is similar to what they’d have paid had they bought the goods without credit.
However, if the customer doesn’t complete payment within the grace period, then their monthly installments include interest. Credit catalogue interest rates vary widely, with the lowest being about 18% and the highest in the market being about 60% per annum. You can avoid any extra costs by always clearing your debt within the interest-free period.
6. Using a credit catalogue is a good way to rebuild your credit rating
If previous delinquencies have hurt your credit rating, and it is now hindering your access to various financial services, using a credit catalogue is a great way to start rebuilding your credit score back up. A credit catalogue offers you credit and expects you to pay, say, in monthly or weekly installments. This way, it is giving you an opportunity to prove to them and other lenders that you are capable of paying up regularly and promptly.
By paying your installments promptly, you will build trust and your credit rating will improve gradually. Not only will you get more shopping opportunities from your credit catalogue, but will as well increase the chances of you being approved for, say, a loan by other lenders.
If you are have been considering signing up with a credit catalogue, you now have six reasons to do so. These are just a few of the many benefits of using a credit catalogue if you have bad credit or you don’t have a credit history at all. However, it’s important to mention that you are going to enjoy these benefits and more if you ensure that you don’t miss any payments.