Choose and charge catalogs, websites, and stores can offer the best value for someone who doesn’t have (or want) a credit card, doesn’t have the money to buy an item outright, or is young and doesn’t have much credit history.
There are many shop now pay plans available, including Seventh Avenue, Fingerhut, Midnight Velvet, Through the Country Door, Monroe & Main, Grandpointe, Ashro, and Coppel Internet. Some offer no credit checks; others do not.
The quality of the products at these locations is excellent, and they are well-respected business merchants.
How do choose and charge catalogs work?
Shop now pay plans allow you to get now the item you need and setup a monthly pay plan to settle the balance.
This can be good for a young person who does not have much credit history. That person will be able to get a small credit limit through a merchant that offers choose and charge stores.
He/she will be able to get furniture, electronics, clothes, shoes or household goods and use deferred billing to pay. This will work like a credit card, but you won’t need one, which can be good for people who don’t qualify for one, as well.
After order the product, you will be paying a monthly installment. The installment amount varies depending on the merchant at choose and charge stores.
Choose and charge websites such as Seventh Avenue require a minimum $20 payment each month and increases depending on how much is charged.
Many merchants also have a finance charge associated with shop now pay plans.
These finance charges help the merchant pay for the programs. They may also have other associated fees, and it’s important to read the terms and conditions before agreeing, so that way you know and are not surprised with additional charges.
Despite the fees, choose and charge stores allow you to buy now and pay later, which can be good if you are short on money this month.
Will my credit history be checked with an order now pay later catalog?
Many merchants will do a soft credit check. This is to make sure you don’t have very bad credit and have no intention of paying the shop back.
There are some merchants that will do a hard credit check, though. A hard pull does have a negative impact on your score, lowering it a few points.
If you have very bad credit, it can be wise not to apply to choose and charge stores that do a hard pull because you may not get accepted and may lower your score even further.
Because there a lot of shop now pay plans out there, you will be able to find one that’s a right fit for you sooner or later.
Will choose and charge websites improve my credit?
Choose and charge websites don’t usually credit report — the exception is if you don’t pay your monthly installments.
You’ll only be credit reported if you don’t pay, but it is possible to send the merchant a letter and ask them to credit report your good payment history.
That can have a positive impact on your credit score.
Most times, choose and charge stores will increase your credit limit if you pay on time, which can give you more options when it comes to products.
Products you previously could not afford may be in your reach once the merchant extends more credit to you after illustrating you are a good customer.
This sort of fiscal responsibility was how old time merchants did business. Before the massive corporations that have stores in every city, there were small business owners.
These small merchants sold goods to townspeople. Some of the townspeople did not have the money to purchase goods every week, so the shop would extend credit to those people he/she knew were good for it.
Buy now pay later catalogs are based on the same idea. A merchant extends a credit limit to you and expect you to pay the money back.
Of course, the merchant nowadays wants to make as much money as possible, which is why there are fees associated with the purchase, but that’s OK if you need to get now and pay later.
It is important to note that you should only use these programs if you can afford to make payments on a monthly basis.
If your finances are super tight and you know you won’t have the money next month to make payments, it can be a good idea to wait on using a buy now pay later website.
Also, please don’t use one of these programs if you don’t have an intention of making monthly payments. This drives up the fees for others who like to use shop now pay later programs. Why ruin it for everyone?
Besides, you’ll be reported to the credit bureaus if you don’t pay the deferred billing amount, which will quickly give you no credit score.
What process do I follow to buy from a choose and charge website?
Websites that offer order now pay later options are easy to use.
You would visit a site such as Fingerhut or Seventh Avenue, fill your online shopping cart with the items you want to get now.
Sign up for an account then and add your billing and shipping information.
You’ll then need to agree to a terms and conditions page, which you will want to read. This will provide the details for the shop now pay plan.
You’ll submit your order and need to wait a little bit for final credit approval. After you are approved, your order will ship to you.
I would like to mention that online shopping buy now pay later sites should be used sparingly, purchasing one or two items at a time.
You’ll develop a better relationship with the merchant because they will trust that you will pay them back with small orders.
If you go out on a big shopping spree, there’s a possibility the merchant may not trust you — despite your good intentions — and refuse to extend you credit.
After a series a small orders and on-time payments, you may be able to get your credit extended and go on that shopping spree.
As you can see, choose and charge catalogs, websites, and stores can offer you a value if you need to get now but may be a little short of money this month, are young and don’t have credit history, or just don’t have (or want) a credit card.