These days, we often receive emails from users who have some problem in their credit history, and they are looking for an option to shop online using credit. The good news is that there is still finance options available for those who do not have a clean credit history.
There are many catalogues that work with a deferred billing system.
The best thing is, you don’t need to lower your shipping expectations when using these catalogues, as they offer high quality, name-brand items that you would find in premium retail locations. These are some of the wonders of online shopping that you can use for your benefit!
How Do They Work?
Deferred billing catalogues work on the basis of setting you up with a weekly or monthly bill, and then based on that you get to spend certain amount of money with them. Instead of doing rigorous credit checks, they just want to make sure that you have a salary, or otherwise some source of stable income. To verify this, they will ask you to produce a copy of your latest bank statements.
This is much less bureaucratic than a credit check, and best of all, it will allow you to buy with credit even if you don’t have a clean credit history. As you buy through the catalogue and keep paying your bills, your credit with the catalogue will keep increasing, as you are showing that you can be trusted. With time, this will build back up your credit history, which is a side-benefit of using these type of catalogues, which takes us to our next point.
Can I Use this to Build Back My Credit Score?
Well, the short answer is Yes. However, there is a caveat.
You see, since they don’t do credit checks on you, they usually don’t report your payments to the credit bureaus either. What you can do, however, is to send them a letter asking them to start reporting your payments to these institutions.
Once you do this, make sure you keep paying your bills on time! This can’t be overemphasized enough!
Over time, you will be building up a good history of payments, which will look very well in your history and more lenders will be willing to be in business with you.