Do Pay monthly catalogues affect your credit rating?
A pay monthly credit catalogue offers you the chance to buy items and repay them back each month.
Popular, but are catalogues affecting your credit rating?
Catalogues are a popular credit product because they are pretty easy to understand.
One of the biggest concerns people have with Catalogs is the affect it's having on their credit rating. Is it good or is it bad?
When a pay monthly catalogue can have a positive affect on your credit rating
If you are new to credit or have opened a pay monthly catalogue to help with day to day items and you are managing your account well it's more than likely that your Catalogue is having a positive affect on your credit rating.
How do lenders see customers with Catalogue accounts?
Pay monthly catalogues are reported and known as “Revolving Credit”.
This means to other potential lenders you are able to manage a Credit Line which is always available to you, a line of credit that you are paying back and staying within a set credit limit.
When a pay monthly catalogue can have a negative affect on your credit rating
If you are not keeping up with the monthly repayments then a pay monthly catalogue is going to have a negative affect on your credit rating.
Missing payments could make it more difficult to get credit
In fact Failure to make payments on time, or managing to stay within your catalogues credit limit could result in additional charges being added to your account and could make obtaining credit more expensive or more difficult in future
Do catalogues affect your Credit rating? YES!
Like any other form of credit it depends on how you use it. If you run the account well it shows you can run a Credit facility, if you are using your Pay monthly catalogue to rebuild your credit rating keep going.
The affect on your Credit rating is down to how you manage your catalogue account.
Each payment made on time will be a Green tick in terms of rebuilding your credit rating.
If you opened your catalogue because you are new to credit then keep going, it will help build a picture of someone who can manage credit and is responsible with lending.