A Guide To No Credit Check Catalogues
If you don’t have a particularly glowing credit score or you don’t have a credit is history at all, then you may benefit from no credit check catalogues. So how exactly do these work? Are you guaranteed approval with these catalogues? Are there specific items that you won’t be able to buy since you don’t have access to a full credit account? If these are questions that you find yourself asking, then here is some insight into no credit check catalogues.
What are No Credit Check Catalogues?
These catalogues are usually online catalogue sites that offer you a line of credit to finance items that you purchase, without checking your credit score first. If you have a bad credit score or if you don’t have one at all, this would be an ideal way to build your credit history.
How does it work?
In most cases, you get a three month no interest on your purchase’s courtesy. So, for example, if the item you purchased costs £500, you would have 90 days in which to pay it in full, and as a bonus, you won’t incur any interest. However, if you choose to pay off the account sooner than the due date, there will be no penalties.
Over time, these catalogues may offer you traditional credit or financing accounts. So simply make your purchases and payments on time, and you will be able to build your credit reputation and qualify for more credit opportunities.
What Do these Catalogues Offer?
These types of catalogues typically offer anything you can buy from traditional catalogues. It may be clothing, furniture, shoes, accessories, and various household items. However, there usually is a limit in place with regards to how much you can buy for. Some catalogues make cap your account at £1,000 while some may allow you a higher amount. This is typically done as a precautionary measure to avoid defaults and to avoid you getting stuck with revolving credit accounts.
So How Do You Qualify for One of these Catalogues?
In order to qualify, you will need to be 18 years and older, provide your proof of income and residency as well. Thereafter the catalogue will provide you with a limit you can spend on items that you want to purchase.
This form of credit can be compared to a secured credit card. You pay upfront, and you can spend the money on the items you want to purchase. If you pay in full, you can purchase other items. So if you pay on time or before the due date, eventually your credit limit will increase, and they may also offer you other types of credit.
Is it Worth Getting a Credit Catalogue?
For those who don’t have open lines of credit or don’t have a credit history at all, this is an ideal way to build one. It can help you prove that you are a customer who is responsible and makes your payments on time. The restrictions are also beneficial and will help you fight bankruptcy and other delinquencies. So ultimately, this is an excellent way to start building a worthy credit history.
Are there Disadvantages to a No Credit Check Catalogue?
Some of the drawbacks of these credit catalogues is that there are restrictions and limits, low spending lines, you’ve got to fork out cash up front, and you can’t open traditional lines of credit. So if you are one of those people that have a steady income, a good credit history, and a good credit score then these types of accounts probably would not be of much use to you.
The restrictions and limits are probably the biggest drawbacks of these catalogues, but if you can’t get approval with traditional credit providers then this is probably the only solution to move ahead.
Is Approval Guaranteed?
In most cases, approval is guaranteed. However, the amount you are approved for is obviously limited. So the simple fact that you have bad credit or don’t have a credit history to be judged on, that is going to work against you to a certain extent.
However, once you make your purchases and payments on time, you will prove that you are a person worthy of credit. From there on your credit score will be increased and you may also be offered other types of credit.
Interest Charges on No Credit Check Catalogue Accounts
There are typically no interest charges on these catalogues. The fact that you are paying up front and before you’re making your purchase that means you won’t incur interest.
If you have a poor credit history, this will be extremely beneficial for you. If you take advantage of this opportunity and adhere to the guidelines laid down, you will eventually build a solid credit score and qualify for traditional credit as well.
So if you simply have no other choice, why not go ahead and give this option a try to see exactly how these catalogues can assist you in improving your bad credit score or non-existent credit history.
Irrespective of what your reasons are for applying for the no credit check catalogues, make a wise decision by doing your research and ensuring that you only take on a responsibility you can afford to pay. If you can appreciate this opportunity for what it is and use it diligently, you will definitely reap the rewards in time to come.