Payroll is an excellent alternative when you can’t buy cash or use your credit card, don’t want to compromise your credit card limit, or even aren’t linked to any bank. The instalments are very small to make your dream come true.
There are people who do not look favourably on store instalment plans, but it is still beneficial, and we prepared this post to explain to you why. Read on and see how it’s worth creating this trusting relationship with your favourite stores!
What is store credit?
Store credit is a balance applied to your account after returning an item. The amount of the credit depends on the item’s price and purchase date. It is a way to handle refunds.
Types of Store Credit
Store credit comes in two different forms: physical and digital.
Loyalty Rewards
Many retailers provide loyalty rewards programs that reward repeat customers with store credits, savings, and coupons. For every AU$200 you spend, for instance, you might receive AU$20 in shop credit.
Gift cards
Gift cards are used as store credit at a particular store or collection of stores. It is comparable to gift cards. You might, for instance, possess a Visa gift card that is usable anywhere Visa is accepted.
Store credit cards
Some businesses provide their own credit cards to consumers so they can make payments over time. You can only use the credit on a store credit card at that particular retailer.
Returns
store credit is frequently provided for returns. So, when you return an item, you can choose to receive a refund or store credit.
Exchanges
Store credit is also given for exchange purposes. For instance, if you bought a shirt that’s too big and you would like to exchange it for a not-too-big size, the store would print out your balance and then you’ll be able to buy something within the same price range.
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What is an instalment plan?
It’s not all we can buy in cash, right? Some items have a very high value to pay for at once, and putting them together for months and months can take a long time to achieve your purchase desire. Paying in instalments is the best alternative in these cases, but it is not always necessary to use a credit card.
It’s true that it became very popular and became the main way to pay in instalments, after all, there are people who don’t even remember the instalment plan because of that.
The instalment plan is also a type of financing, but it is done directly with the store.
Basically, it is a trusting relationship. You earn the right to take your product home, without having all the cost to make the purchase, and you commit to paying a little every month until the full price is paid.
How does store credit work?
The store instalment plan is different from the credit offered by the card. This is because the card is linked to banks and financial institutions, and they are the ones who lend you money to make purchases.
Consider this for a moment.
The credit card is nothing more than a loan you make with the bank and you have 30 days to pay it off. In the case of instalment plans, you make this loan with a store you like, know and trust.
However, this instalment plan is not always really proper. Often, even though it looks like a store credit, there is a bank behind it, deciding who will receive that credit or not — and if there is something unforeseen, this bank will charge you.
Some stores have their own instalment plan, so they do not involve banks. Everything is dealt with directly with them, in a relationship of trust, to ensure that the customer can buy what he needs or wants. The store does an analysis and gives you this vote of confidence.
Opening a Store Credit Card
To open a store credit card you need to provide basic information, such as name, ID, CPF, telephone number and address. A form is created in the system, then the person chooses the product they want to buy, goes to the cashier and the booklet containing the sheets to be paid, one per month, is generated.
You can also pay several instalments at once, and that’s a good thing because the book ends quickly and you can still earn an extra vote of confidence. After all, you do not become a good payer, but an excellent payer, as you are paying your instalments in advance.
Why is the instalment plan worth it?
It is not difficult to understand what is credit, right? But you might be wondering why it’s so worth it if everyone uses credit cards these days. Why would it be better to open an account at the store if it’s so much easier to swipe the card, which, for sure, will be approved if it has a limit?
The answer is simple: not everyone has a credit card.
Furthermore, those who have, do not always want to commit to the card limit. There are still cases in which this limit is too small, not enough to buy what the person wants.
One more reason to pay for instalment plans is the ease of negotiating directly with the store, especially if you delay any instalment. Negotiation of arrears is quite complicated when we involve banks, not to mention that interest will apply to this amount in the same way.
In addition to all this, there are people who do not have links with banking institutions, so the instalment plan would be the best alternative to be able to pay for purchases in instalments, as it is difficult to use a credit card in cases like this.
Wrapping Up
The great advantage of buying in instalments through the store’s instalment plan is that the relationship is much closer there, unlike a credit card, in which the operator does not know you. The service is human and it is possible to negotiate so that the instalments are good for you and for the store.
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