What are credit catalogues?
Catalogues with credit account are companies that offer opportunities to people with poor credit scores to shop first and pay later. This is simply based on the credit score you hold in the market.
After you have placed an order from any of the catalogues offering for credit shopping option, they will evaluate your rating. Only if they are satisfied with your credit score, will accept and process your order. There are many online companies and retailers providing credit catalogue for shopping with good and bad credit score.
It is very attractive when you see the tag line “buy now pay later”. However, what we don’t understand is there is always a clause hidden under these kinds of offers. The consumers should be very careful as many of these companies may have very costly affairs under this flashy tag line.
Be an educated and aware consumer –
It sounds even more interesting when these catalogues advertise “buy now pay later and without a credit check”. The main catch here is they charge a higher rate of interest for the number of days or months you take to pay off the cost completely.
The interest rates are usually up to 25%, which is legally allowed. Usually, the interest rates are mentioned in their terms and conditions within the fine print. These are often overlooked by the customers, and they end up paying huge repayments, which add up to a lot more than the actual price of the product bought.
Always go through all the terms and conditions prescribed by these online retailers and companies, even if they are in very fine print.
Some of the ways to protect yourself as a consumer are mentioned below:-
- Look for the terms of the deals offered by credit catalogue on their website. If you do not find them, then you need to contact the company and demand for the terms. This information should be provided to you by all the companies, as they are legally obliged to provide their customer with all the details under the Federal Trade Commission Consumer Rights.
- Find out the interest rate. They charge a huge interest rate and some of them can be nullified by the discount offers or coupons received by the consumers through special promotions.
- Check for any other fee applied. Some companies will charge you a set-up fee for establishing an account on their website.
- Inquire about pre-payment penalties. Find out if you have to pay the entire bill during the grace period, or will you be charged more for it?
- Find out if they have any rules for obtaining the income records and qualification check to determine your credit score.
- One of the main points to consider is whether these companies have any connection with the credit bureaus. Any sizable debt can harm your credit score.
- If you are dealing with a bank, check what kind of customer service they offer. If they do not hold a good reputation for better consumer support, then move on and continue with your search.
To conclude, before using these catalogues, make that you have done your homework well by researching everything about the company.
James Patrick works with one of the top financial firms and they offer catalogues with credit account to help their clients improve their financial standing. If you need help with improving your credit scores, please visit their website.