If you find something that you desperately want to buy, but do not want to pay right away, catalogues for bad credit offer a very credible option. With catalogues, you can buy one or more products without paying instantly. You instead repay them after a month completely or in monthly or weekly instalments.
Applying for a credit catalogue
You cannot simply order or buy a credit catalogue online, but you need to apply for it. This process is similar to applying for loans, except the terms are a bit easier on you. The procedure is usually as follows:
- You pick a credit catalogue company that you find has products you want
- You fill out a form either at the company office or online and submit your application
- The catalogue company then looks at your request and documents
- If you are found to be credible enough, your application is processed and approved
Catalogue companies decide whether you are eligible based on various factors such as:
- Your age
- Current income
- Future potential
- Bank balance
- Credit score
Unless you are in a dire financial situation, your application will definitely be approved and you will receive the catalogue. What will differ from others is the credit limit that you will get.
What is a credit limit?
This is the maximum amount worth of shopping you can do with the catalogue without paying them immediately. For some it might be £500, while for others it might be £1500 or even higher. Typical catalogue credit limits are decided based on:
- How confident the company is that you will repay them on time
- What your credit score in the past two years
- What kind of wealth you have with you (proven with bank statements)
If you are buying from catalogues for poor credit or shopping with them for the first time, your limit will be somewhere around £500. This is because the company wants to be cautious in the beginning. You will find that this amount is good enough to buy a few products.
Increasing your credit limit
Catalogue companies increase your credit limit when they find that they can trust you more. You can increase their confidence in your ability to repay by:
- Meeting your payment due dates regularly
- Making bigger purchases and showing that you can still pay off
- Paying for your catalogue items within a month
- Showing your current income by way of pay slips
Your credit limits will typically be raised in increments of £300 to £500. This is not certain and the numbers differ from one company to another, but this is the most common increment for most companies.
Even if you can buy fewer things in the beginning, as time goes on, you can keep buying more and more things on credit as your limits are raised. You do not need worry if your starting limit is too low. If you are about to redo your home or buy a new one, a credit catalogue can help you buy the things you want quicker and more easily.
Thomas Swift is a well-known financial advisor, and he usually writes on topics covering catalogues for bad credit. You could also visit their website to find out what credit limit can you get on you repayment history to chop online.