Buy now pay later (aka BNPL) is a payment solution offered by companies which allow customers to get the products they want immediately, then start making repayments at a later date. The amount to be repaid depends on the company credit terms and the APR or interest rate. Buy now pay later is usually only offered on high end goods such as home electricals, designer clothing and large furniture items. Many companies offer interest free payments if the full amount is paid within a certain period. But you will most likely pay interest on all purchases if not paid in full within the specified interest free period, typically from 28 days up to 12 months for more expensive items. Credit provided is subject to successful credit and affordability checks.
There are manycatalogue companies offering buy now pay later credit terms and many high street and online retailers also offer this facility. But home shopping catalogues were the pioneers of buy now pay later in the UK and they offer fantastic flexibility, often with no deposit! Charges and interest rates will obviously vary greatly from catalogue to catalogue and so it is best to compare finance packages before signing on the dotted line. Buy now pay later is an option offered to all catalogue customers that have a credit shopping account, even customers who have poor credit scores, once they’ve been accepted. Catalogues are pretty unique amongst stores in this regard as many retailers require customers to have a store or credit card to take advantage of their buy now pay later finance, which means their finance is only available to those with good credit history.
What if I have bad or no credit?
Catalogues that offer BNPL finance, even for customers with less than perfect credit, include Argos, Lookagain and Freemans, although there is never a guarantee of approval. The Very catalogue also has the option to pay nothing for up to 12 months, as do the Grattan and Kaleidoscope catalogues. There are some high street stores that also offer BNPL, such as Argos and Currys, but high street retailers will usually require a deposit of around 10% and will also usually not accept applicants with poor credit. Therefore, if you have less than perfect credit and you are looking for a buy now pay later scheme with no deposit, then home shopping catalogues are your best bet!