Credit Catalogues vs. Credit Cards – Important Considerations
Credit catalogues and credit cards are financing options that allow you to make purchases even when you are short on cash, but with the assumption that you will be able to pay off the purchase later on. While they serve a similar purpose, credit catalogues and credit cards are quite different, and it is important to understand how each works so you can decide which is more appropriate for your situation.

Credit catalogues
These are credit programs offered by specific catalogues, allow you to order from them and make payments that are spread out over several weeks or months. For instance, a fashion catalogue may allow you to buy a number of items and then make payments over a set period of time, usually between three months and a year.

Credit cards
A credit card allows you to spend money that you borrow from the bank or lender offering the card. You can spend as much as your credit limit, which could amount to hundreds or thousands of pounds, depending on how confident the bank is that you can pay it back. Ideally, you should be able to pay off your credit card bill every month to avoid paying interest on what you borrow. A credit card is therefore suitable for making purchases you are sure you can pay off at the end of the month.

Credit catalogues vs. credit cards
One of the main differences between credit catalogues and credit cards is the approval process. A good credit rating is usually necessary in order to be approved for most credit cards, so a credit assessment will be performed when you apply for the card. Credit catalogues also perform credit checks, but they tend to be more lenient and therefore have higher approval rates than those for credit cards.

In some cases, the credit catalogues and credit cards may be interest-free if you pay the full cost of the item within a set period. Note that your repayments on both credit cards and credit catalogues will affect your credit rating in the future, so it is important to make regular payments as required.

Although credit catalogues carry the benefit of more lenient approval, this usually comes at the cost of higher interest rates than those applied to credit cards. In addition, credit catalogues limit your purchases to particular items from particular catalogues, a contrast from credit cards that allow you to buy a wide range of products from different vendors.