Catalogue credit is a way of buying items from a catalogue, without having to pay the total balance initially. Instead of paying the total cost of an item upfront, catalogue credit divides payments into smaller weekly or monthly installments. Not only does this make the process of buying the items a lot more affordable, but it allows large purchases to be divided into easier to handle payments. Catalogue credit works in a similar way to a loan, with interest being added over the course of the payment period.
The Benefits of Catalogue Credit
There are a number of fantastic benefits to using catalogue credit, which is why it is popular. For example, it can be a more affordable way to buy necessary items. Though a lot of things we buy can be skipped or delayed until the funds are there, this isn’t always the case. Catalogue credit is ideal if your budget doesn’t stretch to include the necessities and it allows you to avoid taking out a loan. Rather than borrowing money with a costly lender, you’re able to pay the catalogue directly in affordable installments. Also, a number of catalogue credit providers offer periods that are interest free. Therefore, if you pay off the total within the allocated interest free period, you will not be paying any more for the privilege of buying now and paying later.
Catalogue credit is beneficial if you have purchases that you can’t avoid or you have a costly purchase to make without the time to save. Rather than having to save up the total cost beforehand, you can pay over a set period of time. This allows you to use future earnings, whilst enjoying your purchase in the meantime.
However, it’s important that you remember to pay off installments on time and that you eventually pay the total amount off in full. Otherwise, you could find yourself faced with late payment fines and a poor credit rating. Luckily, if catalogue credit is used correctly, it can be a fantastic idea for those who are struggling to afford necessary items at the time they are needed.