finance buying negatives

Negatives of Buying on Finance

There are many benefits of buying items on finance; with this being said, there are some cons that customers who prefer ordering online, via catalogue, should consider before they order. Whether you have ordered online in the past, or are new to catalogue shopping, these are a few drawbacks which might impact your decision to order online, rather than pay for items in full.

The interest

There’s no way around it, like any credit card, with financing you will pay interest. Especially if you go beyond introductory periods, or special promotions being offered by catalogues. And, like credit cards, the rates are often high. So, if you want to avoid this, your best option is to go local, and buy in store, using cash or debit card to pay.

Short repayment terms

Sometimes there are interest free options, or low introductory rates when financing; however, they are typically very short. This means if you don’t pay the full price in a period of 3 or 6-months, you’ll pay interest. And, not just on the balance, but on the original order price of items you order online. So, this will hike up the overall price you’ll pay, and also result in payment of back-interest rates, from the original purchase date.

You don’t see/feel/try on items

Catalogue shopping does afford you the comfort of buying from home. However, you can’t see fabrics, colours may be altered on the screen, and sizes might not be the same as with other clothing you own. In these cases, you’ll have to return items, and exchange them. Although this is typically a quick process with most catalogues, it is still a burden of having to repackage, send items back, and wait a longer period of time, to find the right item that will fit and looks good on you.

Not everyone qualifies

Not every individual who applies for financing or a line of credit is going to be approved for it. And, if you do apply and are denied, your credit score is going to take a hit. So, before you do apply, it is important to ensure you would be approved, based on your credit score, history, and your previous payments on other accounts and lines of credit that you do have open.

Catalogue shopping is beneficial, and for many people, it is the only way to shop. But, as is the case with traditional credit cards, when you choose to shop via catalogue, and finance the purchases you are going to make, there are some drawbacks to this as well.

These are a few of the many drawbacks that one should consider if they are planning on ordering items through catalogue financing. Even if you end up choosing to finance, you can at least shop and compare, to find the best terms for you. And, eventually this will allow you to find the items you want, for a reasonable price, when the time comes to finance the purchase of items being ordered through catalogue sites online.

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