Choose n charge companies are popular nowadays because they offer the option to buy now pay later. This can be a good value if you can’t afford to buy an item outright or you do not have a credit card.
There are many online locations that offer shop now pay plans. These include the following: Seventh Avenue and Fingerhut, Midnight Velvet and Through the Country Door, Monroe & Main and Grandpointe, along with Ashro and Coppel Internet.
You won’t have to worry about product quality from these merchants, nor will you have to worry about them being a shady choose and charge company. They are not.
Many other merchants offer this type of program, too, but it may go under a different name such as Bill Me Later. Bill Me Later is offered by merchants such as Wal-Mart, Best Buy, USPS, American Airlines, Overstock.com, JetBlue Airways, Jewelry Television, and Hotels.com. PayPal even offers a similar program.
How do choose and charge catalogs, websites, and stores work?
A shop now pay later plan allows you to get the products and items you need today and setup on a monthly installment plan to pay the balance.
If you don’t have much credit history and are young, this can be a value. You will get a small credit limit and will be able to purchase, from the merchant, many goods, such as electronics, clothes, furniture, shoes, or household items.
You will be able to order the items and set up on a deferred billing program, which will work like a credit card.
The deferred billing requires a monthly installment. Your installment amount will vary on the merchant and the choose and charge catalog you order from.
Choose n charge companies like Ginny’s ask for a $20 minimum payment each month. This amount is higher depending on how much shopping you’ve done.
You will also, more than likely, have a finance charge when you use a buy now pay later website.
The finance charge is the price you pay to use the program. It can be important to read the your terms and conditions agreement so you know what this charge is, along with finding out if there are any other associated fees.
Although there may be fees, choose n charge companies do allow you the chance for a shop now pay later plan when you are short on money during a month.
I have bad credit. Will my history be checked with choose n charge companies?
The short answer: Yes. But merchants may only do a soft credit check. Remember, a merchant is there to make money, and they want to make sure you do have an intention of paying them back.
Although most buy now shop later catalogs do a soft check, there are companies that will do a hard pull on your credit history. This does impact your score in a negative way, by dropping it a few points.
By reading the terms and conditions, you will be able to find out what type of history check the choose n charge companies do.
You, then, will know if it is wise to apply to that certain merchant. Don’t feel discouraged, though, if you find a couple that do hard pulls. Sooner or later, you’ll find a merchant that’s right for you.
Will my credit be improved by using choose and charge companies?
Most choose n charge catalogs do not send your payment history to credit reporting bureaus.
But there is an exception to this: If you do not pay your monthly installments, they will report you.
You may be able to get the shop now pay plan merchant to send your good payment history to reporting bureaus if you send the company a letter.
If they are willing to send the letter, you may get a boost in your credit score.
More often than not, a choose and charge store will bump up your credit limit when you pay the monthly installments on time. The benefit of this is you get more product options to purchase.
Items that were outside of your finances may now be affordable by you if the choose and charge companies extend additional credit to you. Remember, this will only happen if you are a good customer, paying your bills on time every month.
Being rewarded for being fiscally responsible is important. This was how merchants in the past did business.
These merchants were small business owners, who sold goods to the people of their town.
Because every person in town may not have been able to pay at the time of purchase, a small business owner may have extended credit to those in town that he or she knew would pay it back.
A shop now pay later company is based on the same idea.
Choose n charge companies extend a small credit to you and expect you to pay the money back in a timely fashion.
Nowadays the merchant does charge fees with being able to buy now and pay later, but that can be a worthwhile thing if you need an item now and may not have the money to buy it outright.
Tips for using choose and charge catalogs
A shop now pay later program can be a value, but it can also be a boon.
Using these programs if you do not have the means to afford monthly payments can be a mistake. When finances are tight and money is limited, it is best to hold off on using choose and charge catalogs.
These programs can help many people, but if you do not plan on paying the monthly installments, it’s a good idea to not use these programs. The fees will be increased for everybody if you choose not to pay. This causes problems for merchants, who lose money, and consumers, who end up paying more.
You also will be credit reported if you do not pay the monthly installments, which will ruin your credit score.
With a little searching, you’ll be able to find a shop now pay later plan that’s right for you and get the items you need if you do not have the money to purchase the item outright or do not have a credit card. One of these choose n charge companies listed above may be the answer for you.