Debt Views

Establishing a good credit history is not an easy task. It takes time and a lot of financial self-discipline. Even then it can be difficult to find anyone willing to take a risk on you, especially if you are young and do not have any kind of repayment record. If this is you and you are looking for a way to build or re-establish your credit you might want to look at getting a catalogue credit card.

The approval process for catalogue credit cards is fairly lenient. Just about anybody can get one, regardless of his or her credit history. Often times you will have an initial starting limit of as much $7500 with frequent offers for increases. The downfall is that you may have to pay an application fee that could be as much as $150 and you can only purchase items from the issuing companys’ catalogue or website.

There are many benefits to building your credit this way. In most cases, you will not be charged an annual fee and you will only be charged interest on your purchases if you do not pay the entire balance by your due date. Also, These companies report to the major credit bureaus on a regular basis. So, if you pay on time every month you will build yourself up fairly quickly which may prompt one or more of the major companies to offer you a regular credit card that can be used anywhere.

There are also certain things you should be aware before you apply for a catalogue credit card. Watch out for hidden fees. Often times you will be offered additional services that will cost you up to an extra $30 a month. Many times these services will be initiated automatically when you accept the card so make sure you cancel them within 30 days if do not want them. You may also be offered discounts or bonuses but they also come at a cost. Because these companies do not charge the interest or finance fees that would normally cover the cost of the discounts or bonuses, they will frequently raise the original price of their items to make up for it.

If you do decide to get a catalogue credit card, be sure to use it wisely. Before you make use it think it over carefully. Are you buying something that you really need or are you buying it just because you can? Can you afford to make the minimum monthly payment if you make that purchase? Remember, you are trying to establish a good credit record and you do not risk that by spending more than you can afford to pay back. Your best bet is to choose a company that sells practical items that you need.