Instead of credit cards, catalogue companies provide instant financing without conducting a credit check. But, while these catalogues may provide instantaneous credit, they’re typically targeted toward those with poor credit histories.
Which home shopping catalogue company makes it easiest to gain acceptance? Unfortunately, there is no simple answer as every company has different criteria for lending.
Mobile phone contracts
Many people with poor credit find it difficult to secure mobile phone contracts due to companies conducting credit checks. If any items such as county court judgements (CCJs) appear on your report, acceptance could prove challenging for a new handset purchase. You could attempt to decrease risk by choosing cheaper phone models or networks like giffgaff which offer SIM contracts which do not include handsets but operate on a rolling monthly basis.
Consider other options, like family deals where you use an old handset from family members or using a guarantor if possible. Assuming you make payments on time each month and improve your credit rating over time, upgrading to more costly handsets in future could become possible.
As any mobile phone company credit checks will appear on your credit file and act like borrowing, any missed payments could significantly affect your rating and score. Furthermore, applying for new contracts leaves a footprint on your report that could lower it; to allow your score time to recover after being declined applications should wait several months before applying again.
Online retailers
Online catalogs have quickly become a go-to shopping method in the UK. Offering convenient financing solutions that allow customers to spread out the cost of purchases over time – especially useful for individuals with poor or no credit ratings – online catalogues offer customers a way to purchase goods on finance without experiencing the stress and expense of going out shopping in person. But be aware: when using catalogues there can be hidden catches which should be considered carefully before using one.
Typically when applying for catalogues that provide finance, companies conduct a credit check in order to assess whether an applicant can repay their debts in full and on time. However, many companies provide alternatives that don’t require this kind of assessment but still grant instant credit; such catalogues may be known as “buy now pay later” or’spread the cost accounts”.
The main disadvantages of catalogue loans is their higher interest rates – sometimes up to 60-70%! Furthermore, late payments could incur costly penalties; so before making a decision about one of these catalogues it is essential that adequate research be performed beforehand.
