Those who don’t have the highest credit score, or do not have a credit history whatsoever, might benefit from an account with no credit check catalogues. How do these work? Are you guaranteed approval with these accounts and catalogues? Are there certain items you can’t buy because you don’t have access to a full credit account with these sites? Let’s look at the details of these accounts, and why one might want to open an account with a no credit check catalogue.
No credit check catalogues are online catalogue sites which offer you a line of credit to finance items you buy, without checking your credit. If you have a horrible credit score, or if you don’t have any credit built up whatsoever, this might be a great way to rebuild or begin building a credit history.
These catalogues typically offer 3-month no interest on the items you buy. So, if you order an item that costs £500, you’d have 90-days to pay it in full, and wouldn’t incur any interest. There are no penalties for prepayment with these accounts either. Over time, these catalogues might extend a traditional catalogue account or financing account. So, as long as you purchase, make payments on time, and pay in full, this will help build up your credit reputation and help you earn more opportunities to build your credit score up.
Catalogues of this nature typically sell anything you can buy through traditional catalogues. Clothing, shoes, accessories, furniture, and other items for the home. However, they will typically put a limit or cap in place (for some it is £1000, other catalogues a bit higher or lower) as to how much you can purchase. This is to avoid the defaults, and to avoid getting stuck with revolving credit accounts, for those who have a checkered credit past.
With these catalogues you will have to have proof of income, residency, and should be 18 or older. From there, the catalogue will offer you a limit you can spend on items you want to buy. It works similarly to a secure credit card. You pay up front, and you can spend this much on the items you want to purchase. Once the account is paid in full, you can typically order other items. If you pay on time, and pay before the expiratory date, many catalogues will eventually increase your credit limit, and might offer other forms of credit.
Yes; for those who don’t have open lines of credit or a poor credit score, it can help you rebuild. It can help you prove you are a customer who is responsible and will make payments on time, and that you aren’t a risk to default. Although the restrictions are great, if you need to rebuild or if you are fighting through bankruptcy and other delinquencies, this is a good way to start building your name back up.
The limits, the low spending lines, the prepayment, and the fact that you can’t open a traditional line of credit, are just a few of the drawbacks to these types of accounts. If you have a good score, steady income, and good credit history, these accounts possibly wouldn’t benefit you. The limits and restrictions are the biggest drawbacks, but for those who can’t get approval from other creditors or accounts, this might be the only solution to your spending needs.
Most of these accounts and catalogues do guarantee approval. However, they will limit the amount they approve you for, with a secured line of credit, based on your credit history and score. So, the simple fact that you are a bad credit borrower, is going to hinder your ability to spend. And, even though you will be approved, to order items and purchase, you are going to have to pay up front, and you are going to be limited to the amounts which you are approved for, with the bad credit catalogues that do choose to approve you for financing.
Typically, not. Since you are paying up front, and before the purchase, these work similarly to secured credit cards. You won’t incur interest, and you won’t maintain an open or revolving line of credit. These catalogues are typically going to require you to make payments up front and will require the payment in full prior to allowing you to make any other orders through the site. So, you will avoid high interest charges, but you are not going to enjoy the freedoms you would have for spending, if you were shopping with a traditional credit account or credit card account.
Bad credit catalogues have many benefits for those who have a poor credit score or no credit line at all and want to build up their credit. However, they are extremely restrictive, and they do place many spending limits on the individuals who are approved for accounts. Items are typically higher in price than they would be, with a traditional online catalogue or other credit accounts as well.
For those who simply have no other choice, and are trying to build their credit score up, you can greatly benefit from the use of a bad credit, no credit check catalogue site. But, it is worth comparing a few of these sites, to find the ones which offer you the most freedom and flexibility in your spending, for the credit limit which you are approved for as a bad credit shopper.
No matter what the reason for applying for these accounts, make sure you know the limits, the restrictions on spending, and how the financing works, to ensure you choose the right account, the right bad credit catalogue to shop with, and the one which is going to afford you the most liberties as a bad credit shopper, to spend on the items you want to buy online.