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Catalogues With Credit Accounts And How Do They Work

ByDave Stopher

Jun 1, 2020

Rather than paying the full amount upfront, numerous UK catalogues offer their customers the possibility to open a credit account and spread the cost of the purchased goods with payment plans using finance. Also known as a personal account, this type of account is a perfect way for people to improve or build their credit rating. Such catalogues are useful for people who want to pay for the acquired goods over a set period of time. 

Photo by Andrea Piacquadio from Pexels 

If you ever want to open a credit account with a specific catalogue, the other party will define your credit limit, which is usually decided upon various factors related to your credit rating. You will be able to purchase as many items as you’d like to, up to the set credit limit. As every catalogue operates differently, don’t be surprised if you are offered a smaller or larger credit limit with different catalogues on the same credit rating. If your credit rating is lesser than the rating of the average person in the UK, you might find yourself refused a credit account with a UK catalogue. Fortunately, there are a few personal account catalogues for bad credit rating holders, that approve sales to people with a relatively inferior credit rating. Still, before you open an account, it’s essential to identify why you have such a lousy credit history and attempt to fix things before you start borrowing some more.

How Do Catalogues With Credit Accounts Work? 

A catalogue personal or credit account is an option that entails spreading payments for purchased items over a more extended period of time. These payments usually come in the form of weekly, monthly, or yearly payment and can be taken out over a period ranging from а few weeks up to several years. Catalogues that offer this possibility are in a way helping people who like to stay in control of their finances and spread their payments or people who urgently need to purchase expensive or luxurious things but run on a tight budget. Such a catalogue offers buyers a flexible payment period and can be a cheaper alternative to other forms of crediting such as bank loans, or credit card payments.

How Do Catalogue Credit Accounts Compare To Other Forms Of Borrowing?   

As a potential user of a personal catalogue account, you should know that catalogue credit is not the most expensive type of borrowing, and neither is the cheapest. When compared to other ways of borrowing money, it doesn’t always provide the most favorable rates. Most often, the interest rate of catalogue credit is higher in comparison with the interest rate of the average credit card. So why are people massively using this type of borrowing instead of regular ones? In most cases, it’s because it is far easier to obtain and way more convenient to use. While credit card companies like to perform thorough background checks before approval of a loan, the majority of catalogue companies are more relaxed when it comes to providing personal accounts.

Important Considerations Before Using Catalogue Credit Account 

First of all, with a generous credit at your disposal, it can be quite tempting to purchase things left and right without much thought. As there are no immediate payments, the spending can quickly get out of hand. It would help if you are always exceptionally careful with the catalogue credits as things might add up and the total sum that you’ll owe can become overwhelming. Also, missed and late payments come with additional costs, so shoppers must manage their credit intelligently to stay clear of these unnecessary fees. 

Prior to placing an order, a person must evaluate whether the item of interest is genuinely necessary or not. Impulse purchases can be dangerous, specifically if the cost is rather high. Expensive items should be bought with disposable income, and not with credit. Using personal accounts to purchase costly gifts for yourself or others can backfire if you are not able to pay for them in time in the future. Whenever you find something you want to buy on a catalogue, check out other catalogues and stores to see if they store the same product and check the prices. Maybe you will find a more significant discount somewhere else with just a bit of research. 

Photo by Andrea Piacquadio from Pexels 

Pros Of Catalogue Credit Accounts 

One of the best features of credit accounts is that the catalogues will usually provide their customers with interest-free periods. It feels like getting a loan without having to pay for the service in the form of interest. This way, catalogue credit accounts allow you to get the wanted products right away without additional burdens. Have in mind that this will only work well if you can service your credit on time. If not, you can end up with significant debts that continue to grow while you find ways to repay them. 

Catalogue personal accounts are a legitimate way to get your hands on the necessities you need right away. If you are not able to save enough for the wanted purchase, catalogue credit is a reasonably good idea. Always use your credit responsibly, pay your rates on time, and you should be good to go. 

Photo by Brooke Cagle from Unsplash

Cons Of Catalogue Credit Accounts 

On the contrary, having such credit at disposal can make you purchase too many things at once. Even if you think that the interest-free period is long enough to repay everything, that is not always the case. You might end up facing the high-interest rates that can range between 30-40% annual percentage rate. Plus, if you miss payments, your credit rating will suffer as well. Catalogues with credit accounts can be beneficial, but always be sure to manage your purchases and payments wisely and on time.  

Final Thought 

Numerous online catalogues in the UK offer flexible payment terms by taking out a personal credit account with them. If you find yourself on a tight budget, know how to stay in control of your finances, or are looking to pay for a purchase over a more extended period, a catalogue that offers a credit account might be the right option for you.