How does the Fingerhut credit card work and help you build credit?
The process of building or rebuilding credit is a catch-22. You can’t build your credit without having credit accounts, and you can’t get credit accounts without a good credit history. A Fingerhut credit account can help you break out of that cycle.
Here are the advantages for 2014:
- Easy Approval – Fingerhut often says yes when others say no. The process is quick and easy and after approval you can start shopping right away. Their website says you may get a Fingerhut credit application decision in as little as 5 seconds after submitting!
- Your Account Is Reported To Credit Bureaus – Your account is reported to multiple credit bureaus. By making your payments on time, you build a good history. This potentially may help boost your credit over time. Your good payment history can also earn you greater spending power from Fingerhut.
- No Hidden Fees – Credit cards for people with bad credit can sometimes cost hundreds per year in fees. This often makes it hard for people to rebuild credit. However a Fingerhut credit account charges you no annual fees and no application fees.
- Low Monthly Payment Option – You have the ability to buy what you want now and spread out the purchase into monthly payments.
Frequently Asked Questions:
Q: What type of products does Fingerhut sell?
A: Fingerhut sells thousands of products in all sorts of categories – electronics, apparel, health and beauty, jewelry, tools, sports, and the list goes on. Many of their items are unique and you probably won’t see them at your local store.
Q: Is the Fingerhut credit card like a regular credit card?
A: No, you use your Fingerhut credit account for purchases made from the their catalog and website. Your account information will be printed on a card for your convenience so you reference the information while ordering.
Q: Can I set up automatic monthly payments with Fingerhut?
A: Yes! You can set up automatic monthly payments from your checking, saving, bank debit card, or bank credit card. It’s highly recommended to do this if you think you might ever forget to mail your payment on time.
Q: Does Fingerhut do credit line increases?
A: Fingerhut reviews customer credit accounts on a regular basis to see if they are eligible for a credit line increase. Things like your payment history, your external payment history, and credit score might help in obtaining a possible increase.
Here are the disadvantages for 2014:
- As mentioned above, this can only be used for purchases from them. So think of this as you would a store credit card, not a Visa or MasterCard that can be used everywhere.
- The APR is high. Like department store and gas station cards, expect the interest rate to be in the mid-20’s. So pay your balance in full to avoid interest charges.
- Depending on what you buy, the price may not always be the lowest out there. However there are some items which are an okay deal, it just all depends on what you’re shopping for.
Is everything perfect about it? No. But at the end of the day, the ability to apply for Fingerhut credit, even if you have bad credit, is a major advantage.
Since it has no annual fee and a quick application process, I recommend getting an account with them and using it for credit building purposes.
These days there are few major credit cards available to those with poor credit and the ones that do exist usually charge very high fees. So a Fingerhut credit account is a good tool to use for building credit history.
Written or last updated May 6, 2014