Buy Now Pay Later No Credit Check: For Real?
Is it for real when they say “application for buy now pay later has no credit check?” Is it this no credit check feature that makes buy now pay later deals the bee’s knees of financing?
Understanding Catalog Credit
A catalog credit account is a special type of credit line that allows you to avail of buy now pay later deals. Basically, in order for you to make a purchase on a buy now pay later basis, you have to sign up or apply for a catalog credit account.
The manner by which catalog credits work in financing a consumer’s purchase is like the relationship of, say, an auto finance institution and a tie-up dealership. First, you should get qualified and approved by the financing institution before you can proceed with the purchase.
Understanding Credit Check
A credit check is performed when one applies for credit lines (even loans and insurances) in a financing institution. The check is done in order for the institution to know how creditworthy an individual is. It is also done in order for the institution to come up with the most workable loan/credit terms between them and the borrower.
Individuals whose credit check renders a report of high creditworthiness are expected to have the loan/credit terms in their favor. Of course, those with reports in a rather bad shape are stuck with two choices:
- move on to the next prospect financier in hopes of better terms
- accept the terms offered by the present financier even when it is far from what, to the borrower, is agreeable and/or expected.
With buy now pay later providers screaming “no credit check!” Everyone, especially those with poor credit reports, are confident to obtain the credit terms they need.
Buy Now Pay Later No Credit Check: Lured yet?
Aside from banners that scream “no credit check required,” websites stores and even catalog credit financiers often attract consumers with the following headlines:
- Get approved in minutes!
- Zero downpayment!
- No interest!
Altogether, these make buy now pay later offers sound like a good deal. One has to understand, however, that buy now pay later deals are forms of credit and financiers are seeking ways to profit from consumers no matter how generous their offers may seem on first glance. So that the headlines above, in reality, means:
- Get approved in minutes… provided that you meet our requirements and you make purchase in our tie-up stores.
- Zero down payment… on items that cost less than X dollars.
- No interest… as long as you settle your credit before your period ends.