If you’ve got bad credit and no money in the bank, you need to look at your options. First, there are several ways you can boost your credit score. You can pay off your debt; transfer your balance, etc. But there is a way that few people think of and that is by using catalogs with instant credit. Using these catalogs with instant credit has its ins and outs and so must be used carefully. Before you use this method you need to know how your score is calculated and what your score represents to potential lenders.
Your credit score is the way a lender measures your risk as a potential borrower. They do this based on your borrowing history. Now an important element of this calculation is based on your outstanding revolving credit. This is known as the credit utilization score and the lower it is the better.
So, if you can’t pay down your outstanding debt quickly then you only have one other option to improve your credit score and that is by increasing your available revolving credit. This is called using catalogs with instant credit. When you receive the additional credit and it is reported to the credit reporting agencies, your credit score goes up. This may happen in as little as a month or two, which is really fast.
You see getting new credit cards, especially now may be a little difficult but you get the same effect when you catalogues for bad credit. Usually you can only use the credit to buy merchandise from that catalog. That’s OK though, because you are not really going to buy all that merchandise, unless you are required to make a purchase with your membership.
Before you join any catalogs with instant credit, you need to find out whether the company reports to credit agencies. If this is so then your credit score will go up and usually in a quick time frame. This is a great way for catalogs with instant credit to increase your credit score, give you additional credit and a way to get additional buying power. Just make sure your purchases and payments are reported to the credit bureaus before you join any of the catalogs.
Additionally, those that go for catalogue credit cards would find their purchases limited to that vendor only. However, the process is easy this way, not to mention quicker. Mostly, companies would only ask for identification and an address, and correspondence usually takes less than 24 hours. There are many different catalogs with different rules and regulations and which carry different types of merchandise. All you need to do is find a catalog company that you like and then go from there.
Editor’s Note: We are compiling a list of catalogues! If you would like to contribute, please send us a message!