How to Improve your Credit Rating

How to improve credit rating? This is the question you maybe faced with if you are one of the many victims of the debt fiasco. Cheap credit in the past had many shoppers spending like millionaires. Now that the bubble is burst, many have been left wondering what to do with all that debt. Shopping with a bad credit rating hanging over you like a bad cloud scares away dealers. Few are willing to take the risk. Luckily, you can get some reprieve by shopping on catalogues that are willing to take on shoppers with low credit rating.

Catalogue shopping

Shopping on catalogues is a viable alternative for those who are looking for easy credit terms. Catalogues for people with bad credit are ideal if you would like to mend your rating while getting the shopping you need. All you require is to be over 18 and have a valid address. The catalogue will then ask you to open a personal account. The details will be used for a credit check by which the catalogue can decide your level of risk. If you qualify, the personal account is used to record all credit transactions you do on the catalogue. Many catalogues offer the chance to make monthly payments. Interest charged on balances ranges from 29.9% to 39.9% variable APR for different catalogues. You will get a credit limit to use in your shopping. This can be anything from £100-£1500.

Payment terms

When you shop on catalogues you get a number of payment options. You can choose to buy now pay later, which means you buy an item and pay at a later date without interest. With this option, you only pay for what you bought. If the price was £100 you pay £100 at the end of the period agreed. No interest is charged. You can also spread the cost over a period. When you do this you can choose to pay in monthly or weekly instalments. In this option you get charged an interest on the balance usually on a variable APR.

Improve credit rating

When you shop on catalogues for bad credit, you get the chance to improve your credit rating gradually. The payments you make go to your credit rating every time you successfully make them. If you make many payments, over time your record shows of more successful payments than defaults. This helps your good marks over the negative marks. Within several months to one year, you can successfully petition for the review of your credit rating. With a better credit rating you qualify for a higher credit limit. This means you can do more shopping and the cycle repeats itself with you on an upward spiral.

There are a number of catalogues that take on shoppers with bad credit. Isme, Littlewoods, Very and Le redoute just to name a few are good examples. On these catalogues you can qualify for a credit limit of even up to £750 regardless of your low credit rating. Catalogue shopping will help you overcome the bad rating while meeting your needs.