You have a lot of options when searching for shop now pay plan catalogs and sites. These merchants will offer you the ability to buy products you need today, then set up a deferred payment plan to make monthly installments.
Buy now catalogs and sites can be good if you do not have the money outright to make a purchase or you want to buy stuff online with no credit card.
This can be a value because you can get clothing, electronics, home furniture, or just about any product you can think of from many online merchants, including Finger Hut, ABT, Montgomery Ward, Seventh Avenue — even Wal-Mart has a buy now pay later option.
How do shop now pay plan sites work?
An online merchant will extend credit to you, allowing you to shop. You will then need to pay the merchant back in monthly installments.
The monthly installments can range in price between $5 to hundreds of dollars depending on what you actually buy.
With these type of programs, you will, more than likely, have a finance charge, as well. This type of charge is a small price to pay if finances are short one month and you need to get something now.
There may be other fees associated with the purchase and it is best to check the fine print.
Is there a credit check with online shopping buy now pay later sites?
Most merchants will do a brief credit check. Companies such as Sears will do an extensive check, which can be daunting for someone whose has very bad credit.
However, you should still apply — even if you get turned down. Another merchant may accept you. This can be good.
Once accepted, you can prove that you are a quality customer by buying now and paying the balances on time every month.
The merchant will gain trust in you, and you may be pre-approved for a certain credit limit.
You may also ask the merchant if they credit report. If they don’t sending a letter asking if they would submit your payment history to the credit bureaus will be a benefit to you.
These on-time payments every month in good faith may help raise your credit score.
Tips for using a shop now pay plan
Online shopping buy now catalogs can be good and bad. We’ve listed a lot of the good in this article. There are a few bad points you want to watch out for.
If you can’t afford to make monthly payments, don’t use a buy now pay later catalog.
You have will need to make installments with these programs. If you don’t pay, you’ll be reported to the credit bureaus, which is not good.
Also, don’t just shop now with no intention of paying the merchant back. You want to be a responsible individual.
This style of responsibility was common years ago before merchants became global.
A local merchant — say a one-man shop owner — would extend credit to local folks he knew were good for it. The same is true about shop now pay plans.
The merchant is trusting you to pay the money back on time, which you need to do.
Process for order now pay later catalogs
Buying from one of these catalogs is easy. You fill your shopping cart with the goods you would like to purchase.
You will then need to create an account with your billing and shipping information.
The merchant will have a terms and conditions page you will need to agree to, and it is important to actually read the fine print here.
After that, there will be a page about your order will need to be approved then it will ship.
It is important to only buy one or two items from these catalogs. The point behind them is to help build your credit history and get you the items you need now.
If you order the entire catalog, the merchant will be less likely to trust you and more likely to deny your order.
As you can see deferred billing can work to your advantage if you don’t have a credit card or are a little short on money this month and need shop now pay plan catalogs and sites.