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Big-ticket item purchases are increasingly completed online. So is traditional retail finance about to be transformed by the rise of online credit options? Alison Clements reports
Forking out for big-ticket items can stretch many consumers, particularly in the current climate, so offering credit deals at the point of sale can help them spread their payments.
With the advent of the web, being able to offer 0% finance deals online sounds an attractive option for all parties, but the slow, complex nature of credit checking, and perceived risk of the borrower not being present has greatly hampered retailers to date.
Credit is pivotal for both DFS and BrightHouse, yet neither can facilitate online applications for credit today. Littlewoods can help registered customers 'spread the cost' with an online credit application facility and Argos clearly markets 'nothing to pay for up to 12 months' on its home page, encouraging online sign-up to its Argos Card. But the very nature of credit application - and the UK Government is pushing hard on responsible lending - means the online process is far from slick.
"Our aim is to give every online applicant an instant decision," says the Argos Card small print. "On certain occasions, we may be unable to give you a decision straight away. It may be necessary to gather more information or to check other systems so we may have to let you know in writing, usually within 7 to...