You may have considered shopping with Fingerhut if you’re looking for a way to buy something and pay it off over time but your credit isn’t great.
Fingerhut is a catalog and online retailer that sells thousands of items ranging from electronics to bedding to auto parts, all of which can be purchased and financed using the company’s own credit line. Fingerhut caters to those with a poor or nonexistent credit history, so applicants may have a better chance of approval than they would with some major lenders.
However, unlike other credit cards for people with bad credit, you can only use Fingerhut credit to buy things from the company’s store or authorized partners. You’ll also come across high prices and interest rates, so make sure you know what you’re getting when you get a Fingerhut credit line.
Fingerhut is an online retailer that sells a variety of products such as clothing, home goods, and electronics. It also has a store credit card that allows customers to shop online and through catalogs.
If you’ve been turned down by other credit card companies due to poor credit, Fingerhut might be a better option. Fingerhut reports to all three major credit bureaus, so responsibly using your card can even help you improve your credit score.
The Fingerhut credit card, on the other hand, has a high annual percentage rate (APR), and the products the store sells can usually be found elsewhere for a lower price. You’re probably better off getting a secured credit card with better terms unless you’re truly out of options
How Does Fingerhut Credit Work?
If you enjoy online shopping but don’t qualify for most credit cards because of your credit score, the Fingerhut credit card can help you buy what you need while rebuilding your credit.
Fingerhut is both a store and a print catalog, though the catalog isn’t always available, according to the Fingerhut website. Thousands of items are available for purchase on the website, including auto parts, household appliances, and toys.
While anyone can shop at the Fingerhut store, the company also offers a store credit card for those who have no credit history or have bad credit. Because Fingerhut caters to people with bad credit, the majority of those who apply for a store card will be approved.
The Fingerhut credit card, on the other hand, can only be used to make purchases at the Fingerhut store. It also has a high annual percentage rate, making it an expensive card to use if you have a balance.
When you apply for credit with Fingerhut, you’re actually applying for two accounts: a WebBank Fingerhut credit card and a Fingerhut FreshStart installment loan.
Applicants who do not meet the credit card requirements may be offered an installment loan instead. Unfortunately, you can’t apply for one and not the other, and you can’t know ahead of time if your credit is good enough to qualify for the credit card.
You can use a credit card or an installment loan to make purchases now and pay them off later. The APR on both types of credit is 29.99 percent.
The following is a Fingerhut review of
- Fingerhut’s shopping
- How does the Fingerhut credit system work?
- The WebBank/Fingerhut Advantage Credit Account is a joint venture between WebBank and Fingerhut.
- WebBank offers the Fingerhut FreshStart Installment Loan.
- Keep in mind the positive aspects
- Fingerhut credit account alternatives
If your Fingerhut credit account has been approved, you can browse the company’s products online or request a paper catalog be mailed to you. Orders can be placed online, by phone, or through the mail.
Fingerhut’s merchandise is more expensive than that of other retailers, so while getting a credit account at Fingerhut may be easier than elsewhere, you’ll be paying a premium for the ability to shop the catalog.
“While getting a credit account at Fingerhut may be easier than elsewhere, you’ll have to pay a premium to shop the catalog.”
A2Z Credit Advice examined prices in a variety of categories, ranging from arts and crafts to blenders, kids’ shoes, TVs, and tool sets, and discovered that Fingerhut’s prices were consistently higher than the average retail price on Amazon and Walmart.com.
Not only will you pay more for your merchandise than if you shopped elsewhere, but the total price displayed on Fingerhut’s site excludes the 29.99 percent annual percentage rate for carrying a balance.
Fingerhut, for example, sells a Samsung 43″ LED Smart TV for $579.99. It states that payments are $46.99 per month in larger, bolder type. It would take you about a year to pay off the balance if there were no finance charges.
When you factor in the 29.99 percent APR, an item costing between $550 and $649.99 with payments of $46.99 will take 18 months to pay off, resulting in a total payment of $807.49, according to Fingerhut’s existing balance payment chart.
Then there’s shipping: Fingerhut charges higher-than-average shipping fees to get your order to you. According to the Fingerhut shipping and handling chart, that Samsung TV will cost you an additional $29.99 in shipping, bringing your total to $837.48.
Both Amazon and Walmart sell the same TV for under $400, and both offer free shipping on items that cost that much.
How does the Fingerhut credit system work?
Fingerhut credit accounts are divided into two categories:
Advantage Credit Account with WebBank/Fingerhut.
WebBank has issued a Fingerhut FreshStart Installment Loan.
“When you apply for credit on the Fingerhut website, you’re applying for two accounts at the same time. You won’t know which one you’ve been accepted for until you submit your application.”
You’re applying for both accounts when you submit a credit application on the Fingerhut website. If you don’t qualify for the WebBank/Fingerhut Advantage Credit Account, you’ll be automatically considered for a WebBank Fingerhut FreshStart® Credit Account. You won’t know which one you’ve been approved for until after you’ve submitted your application.
Both lines of credit are provided by WebBank and are designed to allow you to purchase Fingerhut products and pay for them over time with a 29.99 percent APR. That’s the extent of the resemblances.
The WebBank/Fingerhut Advantage Credit Account is a joint venture between WebBank and Fingerhut.
The WebBank/Fingerhut Advantage Credit Account is a closed-loop store credit card, which means you can only use it to shop at Fingerhut or authorized partners. I’ll get to that later.
The following are some of the highlights:
- There is no annual fee.
- Purchases have a 29.99 percent interest rate.
- A $38 fee will be charged for late or returned payments.
On your first purchase, you may or may not be required to put down a deposit. You’ll never know unless you apply.
If you are not approved for this account, you will be automatically considered for a WebBank Fingerhut FreshStart® Credit Account, which has different terms and conditions.
WebBank offers the Fingerhut FreshStart Installment Loan.
If you’re approved for a Fingerhut FreshStart Installment Loan instead, the process is broken down into three steps:
Make at least a $50 one-time purchase.
Then pay a minimum of $30 to secure your order, which will be shipped once payment is received. Because credit cards aren’t accepted for down payments, you’ll have to use a debit card, an ACH payment, a paper check, or a money order instead.
Make monthly payments of six or eight payments to pay off the balance.
You can upgrade to a revolving Fingerhut Advantage Credit Account if you pay off your purchase within that time frame or sooner (with no late payments). You won’t qualify for the loan or for potential upgrades if you pay off your entire balance owed when you make your down payment.
The following are some examples of fees mentioned in the terms and conditions:
Fees for FreshStart accounts
Keep in mind the positive aspects
Aside from having a high chance of being approved, a WebBank Fingerhut Advantage Credit Account has a number of other advantages:
There is no annual fee.
Fingerhut credit can be redeemed at a few select retailers, such as florists and insurance companies. For example, you could use your Fingerhut account to make a purchase at Teleflora.com at the same prices as the general public at the time of this writing.
On-time payments will be reported to all three major credit bureaus, according to the Fingerhut website, so good payment habits can help your credit scores. You could eventually qualify for a credit card that you can use anywhere, not just at Fingerhut, if you consistently pay your bills in full and on time.
If you pay off your WebBank Fingerhut Advantage Credit Account balance ahead of schedule, you won’t be penalized.
Fingerhut credit account alternatives
Although applying for a credit card from a company that advertises on its homepage that you can “get the credit you deserve,” there are likely better financial options available, even if your credit isn’t perfect.
Open Sky Secured Credit Card from Capital Bank
The OpenSky® Secured Visa® Credit Card may grant you a secured credit card without a credit check or even a bank account if you have a $200 minimum opening deposit. The card also sends information to all three credit bureaus, so if you pay on time, you can improve your credit score. Best of all, you can shop at any retailer with the OpenSky® Secured Visa® Credit Card, giving you the freedom to compare prices. It does have a $35 annual fee.
If you don’t want to pay an annual fee, the Discover it® Secured Credit Card is a good option. It has no annual fee, and after eight months, Discover may consider allowing you to graduate to an unsecured card. It’s also one of the few secured cards that pays out in the form of rewards. You’ll get 2% cash back at gas stations and restaurants on up to $1,000 in purchases per quarter, and an unlimited 1% cash back on everything else. You’ll also be eligible for a bonus if you learn these phrases: INTRO OFFER: Discover is offering an unlimited cashback match. At the end of your first year, Discover will automatically match all of your cash back! There are no restrictions on how much you can spend or how much you can earn. There was only a dollar-for-dollar match.
The Deserve® Pro Mastercard is a good option if you have a thin credit file. There is no security deposit required, and the issuer may use its own underwriting process to determine creditworthiness based on income and employment verification requirements, even if you don’t have established credit. The card also offers cash-back rewards, with 3% cash back on travel and entertainment, 2% cash back at restaurants, and 1% cash back on all other purchases.
Frequently Asked Questions about Fingerhut
The following are some of the most frequently asked questions and answers about the Fingerhut credit card.
Is Fingerhut Really Beneficial to Your Credit?
Yes, but only if you responsibly use your credit card. You get credit for on-time payments because Fingerhut reports your payment activity to the credit bureaus.
Is Fingerhut able to access your credit report?
When you submit a credit application, Fingerhut will pull your credit score, which will result in a hard inquiry on your credit report. This is why you should only apply for a card if you’re certain you want one, as too many hard inquiries on your credit report can lower your score.
What Is the Average Credit Limit at Fingerhut?
According to online reviews, applicants were approved for credit limits ranging from $200 to $800. Fingerhut sets initial credit limits based on an applicant’s creditworthiness, according to the credit account agreement.
Cardholders are eligible for credit limit increases if they pay their monthly bill on time, according to Fingerhut’s credit tips page. Fingerhut, on the other hand, does not provide any additional information about how much of a raise you can expect.
How Much Does it Cost to Use Fingerhut?
The Fingerhut credit card has no annual fee, which is unusual among credit cards aimed at people with bad credit. The annual percentage rate is 29.99 percent.
The credit account agreement with Fingerhut also states that it will charge up to $40 for each late or returned payment.
Is there a reward program at Fingerhut?
There is no rewards program with the Fingerhut credit card.
How to Get Your Fingerhut Account Canceled
It appears that canceling your Fingerhut credit card is a simple process. You must cut your card in half and mail it to Fingerhut via regular mail, according to Fingerhut.
To return your card and cancel your account, write to the following address:
WebBank is a web-based financial institution.
Credit Account Services at Fingerhut
Box 0260, P.O. Box 0260, P.O. Box 0260, P
56395-0260 St. Cloud, MN
However, keep in mind that canceling a credit card may result in a credit score reduction. This is due to the possibility of your credit history being shortened if you cancel.
Your credit history indicates how long you’ve been a credit user. It’s one of five factors that go into determining your credit score, and it accounts for 15% of the total.
Because there is no annual fee on the Fingerhut credit card, it will cost you nothing to keep it even if you don’t use it. You can simply file it away and keep your credit history intact without incurring any fees.
The Fingerhut credit card, which has no annual fee and an easy approval process, can help people with bad credit get a real credit card and repair their payment history.
However, if you don’t pay off your balance each month, you risk accumulating debt at 29.99 percent APR. Furthermore, the products sold by Fingerhut are generally more expensive than those sold by other retailers.
In the end, if your options are severely limited, the Fingerhut credit card may be a good choice. To avoid accruing interest, make sure you’re committed to paying off your purchases each month.