Very Finance Explained

Understanding Very’s Finance Options

Very.co.uk offers a range of finance options designed to make purchases more accessible. Understanding these options is key to making informed decisions about your spending and avoiding potential financial pitfalls.

Very Account: Your Credit Line

The core of Very’s finance offerings revolves around the Very Account. This is a credit account that allows you to spread the cost of your purchases over time. Applying for a Very Account involves a credit check, and the interest rate applied to your purchases is typically variable. The rate can be quite high, so it’s crucial to understand the APR (Annual Percentage Rate) before making any purchases.

Payment Options

With a Very Account, you’re generally presented with a few payment options:

Minimum Payment: Paying only the minimum payment each month keeps your account in good standing but results in significantly higher interest charges and a longer repayment period. This is the most expensive way to use the Very Account.
Fixed Payments: Very often offers “Buy Now, Pay Later” (BNPL) deals with fixed monthly payments over a set period. These deals can sometimes be interest-free, but only if you meet all the repayment deadlines. Missed payments can trigger hefty late fees and interest charges retroactively applied to the entire purchase.
Paying in Full: The most financially responsible option is to pay off your balance in full each month. This avoids all interest charges and late fees, effectively treating your Very Account like a debit card.

‘Buy Now, Pay Later’ (BNPL) Considerations

BNPL options through Very, like many retailers, can be appealing for spreading the cost of larger purchases. However, they require careful management. It’s essential to mark down payment dates and ensure sufficient funds are available in your account to avoid late fees. Furthermore, excessive reliance on BNPL services can lead to overspending and difficulty managing multiple payment schedules. Remember that Very might offer their own BNPL schemes, in addition to, or in replacement of, offerings from third-party providers like Klarna or Clearpay.

Interest Rates and Charges

As mentioned, the APR on a Very Account can be considerably high compared to traditional credit cards or personal loans. Late payment fees can also quickly add up. Before using a Very Account, calculate the total cost of your purchase, including interest charges, to see if it’s the most cost-effective option. Consider alternatives like saving up for the purchase or using a low-interest credit card if you have one.

Managing Your Very Account Responsibly

Treating a Very Account as a responsible financial tool requires discipline. Regularly review your account statements, set reminders for payment due dates, and aim to pay off your balance in full whenever possible. Avoid impulse purchases and only buy what you can realistically afford to repay within a reasonable timeframe. If you find yourself struggling to manage your Very Account, contact Very directly for assistance or seek advice from a debt counseling organization.