Catalog credit cards

Catalog credit cards are credit cards that are offered by large catalog companies.  They tend to be available to people with poor credit and although they are offered under the catalog company label they can often be available to spend at other places that accept credit cards.

Catalog cards are some of the more profitable credit cards because of their very convenience in applying for them and the relative inability to compare them with other credit cards when applying.

It is often the case that an existing customer is offered a catalog card when filling out a purchase order and that by applying for the card they will be able to get an instant discount.  This convenience has a cost as catalog cards tend to has some of the highest interest rates and less favorable conditions of all credit cards.

There are a number of good reasons to apply for a catalog card.  Firstly as they are tied to the catalog they can offer good rewards programs – usually in the shape of discounts – compared to other card providers.  This will differ from card to card and it is a good idea to check with the card holder.

The rewards programs and discounts will almost entirely be limited to goods sold through the catalog.  So if a customer is frequently ordering from a particular catalog then the discounts from the card may be worthwhile.  If there is an extended interest free period or an introductory discount these may be worth taking a card if there is a very large purchase that would be made any way.

Most catalog cards are private label cards.  These are provided by banks such as GE Money who will run the administration of the card, while the catalog company will retain the brand and take some of the profit.  These cards can generally be used anywhere and not just with the catalog company.

When catalog credit cards were first introdued the catalog company operated the cards in-house doing all the administration.  In house cards only allow spending on items offered in the catalog.  Private label cards have mostly replaced these cards but there are still some in-house cards that are being offered.

Due to the type of people who shop through catalogs, catalog credit cards tend to accept applicants with low credit scores.  They have traditionally been a way to improve credit scores.