There is nothing better than getting accepted for a pay monthly Catalogue.
This is especially true if you have a bad credit rating and have been unable to obtain a Credit building credit card or credit elsewhere.
Getting accepted for your Pay monthly catalogue is the first step in a long road ahead to rebuilding your credit rating
Your credit rating will start to improve as you use and make payments on your Catalogue.
Catalogue companies are likely to offer a low credit limit initially,
Some people pay close attention to the Credit Score a credit reference agency provides them.
Credit Scores will be reduced when the amount of money you owe increases, you apply for credit or you open a new credit account.
Most Catalogue companies will offer an initial credit limit of £1000 or less.
When you look at your Credit Score after applying for a Catalogue or any other form of credit, this score will be reduced for applying for any form of credit.
Low Credit limits can also be a negative in terms of your credit score.
Further points are then taken away when you open a new credit account.
But don't worry, this is a temporary measure.
Within 6 months, you will find your points taken from you for the credit search will be restored and over time you will earn points by running your Catalogue and making all of your repayments on time.
As time goes on, your Catalogue will look at your account behaviour, by placing orders and make repayments on time, you will see your Credit rating slowly increase.
As this happens, you will start to be considered for credit limit increases.
The Catalogue company will also review how you are managing other credit facilities you have, however if you have late payments, new defaults or CCJ's the chances are they will feel you are not managing your finances well and are unlikely to offer you a credit limit increase
They will also keep in mind, your income.
If things are going well and you are keeping up with all of your credit repayments, your credit score and credit rating will improve. Your Risk will reduce and it's likely your Catalogue company will be more confident you can afford to make slightly higher repayments, they will therefore be more likely to offer an increase to your Catalogues credit limit.
Catalogue companies often review credit limits after 3 to 4 months
It usually takes around to four months to be considered for a credit limit increase, some catalogues may take 6-12 months, it does depend on a number of factors including your spending history and how you are managing your repayments
To stand the best possible chance of big increases and to get your Catalogues credit limit up and over the £1000 mark, try to use your account often. Pay back more than the minimum repayment on time each month.
From a business point of view, customers that are placing orders and showing they can afford more than the minimum repayment will make good financial sense.
If a catalogue company knows that you are going to be a good customer for them and place frequent orders and they are going to be repaid on time they are likely to reward this customers with more spending power.
However, you must be sensible. Don't over order, or order items you cannot afford. o. Keep orders to a sensible and affordable level, order items you need and will use.
Your credit rating will improve, if you have bad credit, Such as defaults and CCJ's it's going to take a while to show you can manage your finances well again.
Over time, running a Catalogue will show you other potential lenders you can make your repayments on time and that the past negative credit history will begin to be looked at along side a current Positive credit history.
Believe me, it takes time, it feels like a very long road and that's pretty much what it is.
However, each step you make is an important one. Each positive stone will eventually open the door to a much improved credit rating.
Keep driving down that road, be sensible, keep up with all of your repayments and don't apply for lot's of credit.
Take each day as it comes, eventually, your Credit limit will be large enough to show you are trusted. Once you can prove that you are becoming more responsible with credit, you will be in a position to apply for other credit products such as Credit Cards, Loans and Current accounts and your chances of being approved will be greatly improved.