What Are Catalogues for People with Bad Credit?
Let’s now take a look at what these catalogues are in a bit more detail. These catalogues, while not the most popular option are a common choice for those with poor credit. In addition, these catalogues have grown in popularity in recent times.
Generally, most catalogues do not come with a payment option for those with bad credit, but nonetheless, there are plenty of examples on the market for you to look into! We’ll touch on the competitors vying to be the best bad credit catalogue, later in this article.
- What Are Catalogues for People with Bad Credit?
- How Do Catalogues for People with Bad Credit Work?
- Benefits of Catalogues for People with Bad Credit
- Disadvantages of Catalogues for People with Bad Credit
- Who Offers Catalogues for People with Bad Credit?
- Considerations for Catalogues for People with Bad Credit
How Do Catalogues for People with Bad Credit Work?
We’ll now explore how these payment plans function. We’ll also consider how you sign up to these catalogues. A catalogue for those with bad credit, works much like most buy now, pay later catalogues, except with a few key differences.
For instance, the credit check rules, which will apply in most cases, are far less stringent or, some of the time non-existent as is true with any catalogue for no credit.
You will need to be approved and accepted after filling out an online form but since having bad credit is the main obstacle for those applying to buy now, pay later catalogues in general, you can expect that to be approved for these types of catalogues.
The payments are calculated as a given fraction of the total cost. So, if you’re using a pay weekly catalogue, you may have the total cost of your purchases broken up into eight payments, one per week over a two month period. Alternatively, you might be using a pay monthly catalogue.
Regardless, interest may also be included with each payment, but it will depend on the catalogue. Some catalogues for people with bad credit feature no interest. Where interest applies, you’ll be looking at a representative APR of roughly anywhere from 25% to as much as 60%.
The reason that the interest rate can get so high with these catalogues, where it does apply is because of the presence of catches with many catalogues for those with bad credit. After all, most providers will want to put some measures in place to prevent repayment defaulting from consumers, particularly when it is those with bad credit.
Benefits of Catalogues for People with Bad Credit
In this section, we’ll break down the various advantages if you chose to get a catalogue with bad credit.
Flexible Payment Options
First and foremost, these catalogues tend to come with a flexible range of payment options. This tends to include a pay weekly and pay monthly plan. Which payment option will suit you best will depend on your circumstances. For instance, when you get paid may play a role in this.
If you get paid weekly, then the weekly option may prove more suitable, but you may prefer a monthly plan, if you get paid about once every four weeks.
Enables Instant Spending
Once you’re approved, you can start spending using credit right away! This allows you to obtain products without needing to spend cash just yet.
This will, of course, save you money in the short-term although where interest applies, it’ll cost you more in the long-run. However, interest isn’t always included, which brings us on to the next pro.
Some Catalogues Offer Zero-Interest Plans
While it may be a bit surprising, some catalogues feature no interest! These zero-interest plans may be ideal for those with bad credit as they are easier to pay back and offer a more straightforward and safer way to start turning your credit history around.
There is also the possibility of interest-free periods. Even if interest does ultimately apply for a given bad credit catalogue, there are some catalogues out there which offer the option of avoiding interest to start with or in some cases, in the middle of the payment plan.
Can Improve Credit Rating
So long as you make your payments on time and use these catalogues wisely, you can expect your credit rating to improve. Obviously, as with any of the benefits discussed in this section, to make the most of a catalogue for those with bad credit, it’s essential that you choose a catalogue that is suitable for you and that fits with your budget and finances.
You should avoid using any buy now, pay later catalogues if you are uncertain that you’ll be able to meet your payments when they are due.
Disadvantages of Catalogues for People with Bad Credit
While there are a range of positives to these catalogues, there are undoubtedly a variety of disadvantages. Let’s take a look at some of the cons.
Higher Interest Rates
A lot of bad credit catalogues have higher interest rates than regular buy now, pay later catalogues. As mentioned earlier, this is to facilitate the reality that consumers with poor credit are a bigger risk from the point of view of the providers.
As for the representative APR, the rates could reach up to about 60% with these catalogues! So, this is something you’ll definitely need to take into consideration.
In fact, buy now, pay later catalogues come with higher interest rates in general if you compare them with say loans or using a credit card. The risks may be greater too, but ultimately it will depend on the specific catalogue.
Loans tend to feature a representative APR of about 10% while credit cards usually have an interest rate of around 20%. Catalogues, on the other hand, generally start with an interest rate of 25%.
The Risk of Expensive Penalties for Missed Payments
While these catalogues can be a welcomed relief for those looking to improve their credit rating, the risks are very real. If you miss a payment, many catalogues for those with bad credit feature expensive penalties which will usually come in the form of added interest. So, once again, make sure that you’ll be able to pay on time before using these catalogues.
Potential Excess Charges
There is also the risk of extra charges being featured either as optional or non-optional additions. This is part of the reason why analysing each option is vitally important as you don’t want to miss something that could come back to hurt you financially at a later point.
Buy now, pay later catalogues come with very real value either as a way to save on expenses in the short-run, improve your credit rating or both. However, while they have risen in popularity in recent years, their adverts, which is partly why they have reached a wider audience, will not always give you the information needed to understand the full risks involved.
Who Offers Catalogues for People with Bad Credit?
As discussed, catalogues for bad credit history are not as popular as most buy now, pay later catalogues and catalogues are not generally suitable for those who follow into this category. However, there are still quite a few to choose from.
Here are some popular examples;
- Yes Catalogue
- Bon Prix
- La Redoute
- Savvy Benefits Card
- Sunshine Mobile
Yes Catalogue, like some other examples is not only a good match for those with bad credit but it, in fact, contains no credit checks whatsoever! Catalogues with no credit checks, in general, are an ideal match for those with a poor credit rating, since your credit history won’t matter when it comes to your application.
Of course, no credit check catalogues, as with catalogues for those with bad credit in general, do often feature some catches which make it less desirable than most buy now, pay later catalogues. Ultimately, it will depend on the catalogue.
It is possible to find catalogues for people with bad credit that aren’t particularly disadvantageous at all. It’s important to note that there are more options to choose from beyond those that we’ve discussed in this section.
However, it will be trickier to find the right catalogue for you based on your area of interest, whether that is clothing, technology, gardening or something else. This is simply down to the fact that there are fewer catalogues for people with bad credit than there are of regular buy now, pay later catalogues.
Considerations for Catalogues for People with Bad Credit
Even if you decide that a catalogue for those with bad credit is suitable to you, there are still some additional points you should take on board. Let’s now break down some further considerations.
As mentioned in the previous section, you can expect many of these catalogues to feature a high-interest rate, although that is not always the case. So, have a look around at various catalogues for bad credit and weigh up their pros and cons, including by looking at what interest rates they feature.
It’s essential that you choose a catalogue with an APR that suits your financial circumstances.
If you want to reduce hassle, you may also be interested in catalogues with no credit checks. By nature, these catalogues are generally well suited to those with a poor credit rating since that won’t be considered as part of your application.
What Payment Option Suits You?
You also have to consider what payment option suits you bet. Would you like to pay once a week? Once a month? How about paying the full amount but at a later date? These options and more are available from many different catalogues that are available in the UK. Once again, research is the key here to finding the best choices for you.
We hope you’ve enjoyed our review of catalogues for bad credit. As we’ve discussed, these catalogues come with a range of pros, cons and additional considerations. You’ll need to weigh these points up before deciding whether these payment plans are right for you at this moment in time.
We’ve also discussed in this article, which companies offer catalogues for people with bad credit, what they are and how they work. If you’ve decided that these catalogues are right for you, then once again, don’t forget to also compare the various catalogues to figure which one is the most appropriate choice. Best of luck!
Q: What’s the best catalogue to get if you have bad credit?
A: Some of the best catalogues for those with bad credit are Yes Catalogue, La Redoute and Savvy Benefits Card. As we showed earlier, however, there are many more examples.
Q: Are there ‘no credit check’ catalogues?
A: There are. Yes Catalogue is a popular example.
Q: I’ve got a county court judgement. Can I still apply for bad credit catalogues?
A: If you have a CCJ, it’s going to be that bit harder, but it shouldn’t be beyond the realm of possibility.
Q: Can I apply for bad credit catalogues?
A: Yes. Begin your search and then start applying once you’ve found catalogues that suit you! As our article has shown, there are a lot of catalogues for people with bad credit and even some which feature absolutely no credit checks.
Q: Does it cost more to use a catalogue for bad credit?
A: In many cases, yes, it will cost more overall. This will usually be due to higher interest rates, which could get as high as about 60% but other excess charges can also appear. This is why it’s essential that you know the ins and outs of a catalogue before signing up.