How Does Buy Now Pay Later Catalog Shopping Work in 2016?

Ever wanted to purchase something online and pay for it later, even though you haven’t established good credit or your credit worthiness has seen better days? No problem, thanks to the many types of Buy Now Pay Later Shopping opportunities.

Here’s Where Buy Now Pay Later Shopping Comes In

As an alternative to using a credit or debit cards, many catalog retailers will grant credit for you, thus allowing you to make monthly payments towards your purchases. A few of the benefits for you to consider are that, for many, the application process is fast, and relatively easy, with no embarrassing credit check. Many retailers grant up to $1,000 to $2,000 in credit towards the purchase of high-demand items like televisions, computers, electronics and gifts and offer low payment terms. If you can maintain a good credit payment history, this can be a good signal to future creditors.

What’s in the Fine Print?

In order to qualify for credit, you will have to submit proof of identity and disclose your social security number, just like any other credit application process. Some buy now pay later companies sell your information to other companies, so don’t be surprised if you receive lots of junk mail and email a few months later. Also, typical interest rates are much higher than good to average credit cards. Many buy now pay later catalog purchases are financed at rates exceeding 20% and if you pay late, they will report your delinquency to the credit reporting agency, just like any other creditor.

So, who are some of the top Buy Now Pay Later Catalog Retailers?

Although there are many, here are 3 of the big Buy Now Pay Later Catalog Shopping Retailers with different business models and requirements. We’ve reviewed some of the fine print for you, but please take your time and select the service that makes the most financial sense to you and the one that carries the products that you love.

Montgomery Wards

Store Type: Department store with wide range of product categories.

One of the oldest and most reputable retailers with an easy application process and a 24-hour turnaround for new accounts. Minimum payments are about $20 a month for a balance of $200 or less and you can pay your bill online by linking your bank checking account. You can also request a printed catalog – familiar to many who grew up searching through their catalogs around the holidays.

FlexShopper: Lease the Brands that You Love.

Store Type: Online retailer carrying a wide range of product categories, electronics and other brands.

A little different model than Wards, FlexShopper allows you the ability to lease-to-own your favorite brands. However, one of the differences about a lease is that you pay every WEEK! That means that you will end up paying the most financing charges on your buy now pay later purchases. Technically, you do not OWN the product until you have either completed all 52 payments or you have opted to pay early. Based on your credit worthiness, though FlexShopper is very generous, they will give you a spending limit. An unusual benefit is that they do not report your credit status to the major credit reporting agencies: Experian, Equifax, and Trans-Union. See their disclaimers, as the service is not permitted by law in several states or they have opted not to enter several local markets because of some unfavorable business conditions.

Fingerhut: Now You Can!

Store Type: Well-known online retailer for gadgets, apparel, baby, fitness, health and many more.

Figerhut has a history of being a helpful catalog retailer and publishes product guides to help consumers make the right purchases. Fingerhut offers a “FreshStart” program requiring you to make a $30 deposit before your product will ship to you. Afterwards, you can make monthly payments towards your balance and when you complete payment for your purchase, Fingerhut will “graduate” you to a revolving credit account. With a revolving credit account, you may be eligible for deferred payments and the ability to shop as frequently as you like.

Tell Others About Your Experiences

Have you used a Buy Now Pay Later Catalog Shopping Service? If so, which one and how did that work out for you? What were the pros and cons and red flags to be avoided? Please share your experiences and help out our other Seekyt readers.