Credit catalogues are very popular today. While they have been around for many years, their popularity has increased rapidly over recent years because of various reasons.
First, a lot of people are beginning to realize the benefits of using them, so the number of shoppers using them is increasing by the day.
Secondly, the credit catalogues themselves are too many, and they are offering various attractive deals. For instance, many catalogues offer the Buy Now Pay Later option that is attracting many customers. Bad credit catalogues which are specifically targeting shoppers with poor credit ratings have also emerged.
While there are a few drawbacks of using these catalogues, in general, signing up with a reputable bad credit catalogue is one of the best decisions you can ever make, especially if you have a bad credit score. If you have been contemplating opening an account with a bad credit catalogue, you should go right ahead and do it.
Here are five reasons why this is definitely worth it;
Top Five Reasons You Might Want to Use a Bad Credit Catalogue
1. Guaranteed approval
With a poor credit rating, it’s very hard to get credit from regular stores or financial institutions. This is not the case for bad credit catalogues. Most of these catalogues guarantee 100% approval, which implies that even if you have a low credit score, the catalogue will approve you for credit.
Many bad credit catalogues don’t even check the credit histories of their customers. They are not concerned too much about your past credit history. They only care about developing good business relationships with their customers. Note, however, that credit catalogues limit the amount for purchases they approve customers for depending on various factors.
So once you register, you will be granted a shopping limit of, say, £500. If you impress by paying your monthly or weekly installments regularly and promptly, the catalogue can increase your limit to even £2000 or more.
2. They have a variety of payment options
Unlike a traditional catalogue, bad credit catalogues offer shoppers a raft of payment options. You do not have to pay an upfront fee or clear the entire cost of the items you purchase at checkout. You can decide to take the buy-now-pay-later option which allows you to take goods and pay at a later time.
Better still, you can spread the entire cost over many weeks or months so that you have smaller monthly or weekly installments. Some bad credit catalogues even allow their customers to choose when they can start making the payments. Such flexibility reduces the chances of customers defaulting because they get to choose the payment option they are comfortable with.
However, it is important to mention that a catalogue credit is like a bank loan. Missed or delayed payments can hurt your credit score just like missed loan repayments do. And in the unfortunate circumstance that you default entirely, the bad credit catalogue can even sue you. So it is important that you carefully choose a payment option that will work for and then make sure that you don’t miss any payments.
3. Bad credit catalogues have interest-free periods
Many bad credit catalogues have interest-free periods. During this period (often between 3 and 12 months), your monthly repayments do not include interest. So in case you are able to pay off the full amount owed within this grace period, then the entire cost of items bought is equal to the cost you would pay if you bought the items without interest. If, however, the interest-free period ends and you haven’t completed payment, then your monthly repayments will include interest.
The lowest interest charged by credit catalogues is about 18%, but it can go as high as 60% or more. On average, credit catalogues charge interest of about 38%. You can always avoid interest by paying off the costs within the interest-free periods.
4. They offer an opportunity to rebuild your credit score
If you have a poor credit score, using a bad credit catalogue can go a long way helping you to rebuild your credit score back up.
How so?
You see, by giving you products on credit and then allowing you to pay in installments, the credit catalogue is offering you the opportunity to show that you are a financially responsible person who is capable of paying up your bills regularly and without delay.
If you do this, you build trust, and your credit score will gradually start to increase. This earns you more shopping opportunities and you a have a better chance of being accepted by other lenders.
5. Credit catalogues offer a range of products and various incentives
Almost everything sold by regular online stores or brick and mortar stores is available on bad credit catalogues. You can shop for shoes, clothes, home décor products, furniture, electric appliances, phones, and accessories, among other things. While most catalogues stock a variety of items, some sell specific items.
For instance, there are bad credit catalogues that only sell plus size women’s clothes while others only stock children’s clothes and shoes. Due to increasing competition for customers, many bad credit catalogues offer different incentives in a bid to get shoppers to sign up with them.
Some of the incentives most commonly offered include discounts and coupons for various items. Also, some catalogues provide free delivery services. This means that you can place orders at home in the comfort of your couch, and your items will be delivered right at your doorstep.
You get to save a lot of money by taking advantage of these incentives. Using a bad credit catalogue comes with several benefits, but these five are top of the list. If you have been thinking about opening an account with a credit catalogue, you have five more reasons to do so.
Do some background checks, compare catalogues and choose a reputable one with the best deals, prices, and offers. However, note that you can only get to enjoy these and more benefits by ensuring that you clear your bills promptly as required of you.