Catalogue credit is a type of credit offered by catalogue companies that sell a wide range of products, such as clothing, electronics, and home goods. This credit allows you to buy items now and pay for them later, either in instalments or at a future date, often interest-free for a certain period.

You apply for credit directly with the catalogue company. Approval is based on your credit history and score.

Once approved, you can start purchasing immediately up to a certain credit limit.

The company will send you a monthly statement detailing your purchases, the minimum payment required, and any interest charges if applicable.

You have the option to make payments over time (usually monthly). Many catalogues offer an interest-free period where if you pay off the balance within this time, no interest is charged.

Offers a delay before you need to start making payments on purchases.

Many catalogues offer periods where no interest is charged if the balance is cleared in time.

You’re required to pay a minimum amount each month, which could be a set fee or a percentage of the balance.

Catalogues can be really helpful sources of credit for buying essentials like household items and clothes and shoes. The list below shows the advantages:

• Allows you to shop from home and have items delivered to your door.
  
  

• Spreads the cost of expensive items over time, making budgeting easier.
  
  

• Often includes special offers, discounts, or exclusive products not available elsewhere.

Although catalogues can be really helpful sources of credit, they can be very expensive forms of credit if paid back over long periods. The list below shows the disadvantages:

• If you don’t pay the balance within the interest-free period, high interest rates may apply.
  
  

• Late payment fees can be substantial. It’s important to read the terms and conditions to understand all possible charges.
  
  

• Like any form of credit, poor management (e.g., late or missed payments) can negatively affect your credit score.

Ensure you can afford the payments before committing to purchases.

Keep an eye on your buying habits to avoid overspending.

Set reminders for due dates or set up direct debits to ensure you never miss a payment.

Tips for Using Catalogue Credit Wisely

Understand when payments are due, the length of the interest-free period, and the rate of interest after this period ends.

Check if items are cheaper elsewhere before buying through catalogue credit.

Consider using catalogue credit for emergency situations rather than routine purchases to avoid unnecessary debt.