Disadvantages of catalogue credit

We already brought out the advantages of obtaining catalogue credit. But, are there any downsides of shopping on account? 

High-interest rate

While the interest-free period sounds tempting, think about what would happen if you miss it. If you delay your payment, you will end up paying excessive interest rates. Hence, this can cost you more than the value of the product bought. 

It affects your credit score

The catalogue credit works like any other loan. If you are late with the payments, this will negatively affect your credit score. And also, don’t forget that it will put you in an awkward situation with the agent you got the catalogue from. However, if you pay regularly, you won’t deal with this kind of issue. 

Limited to specific brands

Although the catalogue includes a wide range of products, they might not offer your favorite brand. The catalogue credit limits you only to buying the brands included. If your preferred brand isn’t included, you can’t buy it using the catalogue credit. 

Spend more

Catalogue credits are so convenient, so they might trick you into spending more than you would when paying in cash. Avoid impulsive purchases and keep track of your payments to avoid headaches later.