How Does It Work
Unlike the Fingerhut credit card, you are required to make a one time down payment of $30. The $30 will be taken from the amount of your first purchase.
The cost of that first purchase needs to be between $50 and your credit limit. The credit limits for Fingerhut Freshstart is from $125 to $230.
When your $30 down payment is processed, Fingerhut will ship your order to you. Your payments every month will include part of the item that was purchased in interest.
If you dont miss payments, pay late, or have payments returned due to insufficient funds, your status with Fingerhut will move up a tier when your balance is paid in full. In most cases, this will be in 6 to 8 months, unless you pay over the minimum amount due on each of your statements.
The completion of the FreshStart Program earns you a Fingerhut Advantage Credit Account.
The Fingerhut Credit Cards Vs The Group One Platinum Card
Is Fingerhut a Credit Card?
The Group One Card is similar to other card offers for bad credit. Another popular option is the Fingerhut Card. The Fingerhut, like the Group One, is not a Mastercard or Visa, but rather a catalog card.
The Fingerhut FreshStart Card account offers an initial credit limit of $125 $230 and requires an initial down payment of $30. For that initial deposit, cardholders enjoy access to an online catalog, the Fingerhut catalog , which is much like the Horizon Outlet. Fingerhut credit protections are similar to Group One and Horizon Card security and protection.
Does Fingerhut Build Credit?
Like the Horizon Gold and Group One Platinum, Fingerhut reports to all the major credit bureaus. This means that Fingerhut is a decent option for building credit or establishing a good payment history for the first time.
Unlike the Group One Platinum, however, Fingerhut credit card accounts come with a 29.99% APR on purchases. Group One, on the other hand, features no interest on purchases. Additionally, both the Group One and Horizon Gold Cards come with a $750 unsecured credit line, double that of the Fingerhut Card account.
Both the Horizon Gold and Group One offer better credit limits and lower interest payments than the Fingerhut from WebBank. While the Fingerhut Card has lower fees, for those with bad credit that struggle to get credit cards, the Group One might offer better value.
Capital One Secured Mastercard
The Capital One Secured Mastercard is another credit card with no annual fee. The 26.99% APR is a bit high, but you can avoid interest by paying off your balance each month.
You can also choose the security deposit that fits your budget by paying $49, $99, or $200. According to Capital One, you can get access to a higher credit limit after five months of on-time payments.
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Can Fingerhut Build Your Credit
The Fingerhut Credit Account reports your payments to all three of the major credit bureaus, Experian, TransUnion, and Equifax. This gives you the opportunity to build or rebuild your credit, but it depends on you.
The Fingerhut Credit Account will report your payment history, which will help you build your credit score.
If you pay your bill on time and pay at least the minimum amount due each month, your credit score should increase over time. Keep in mind that you must do this consistently one missed payment can undo all your progress.
On the other hand, if you are delinquent paying your bill, you may go into collection. This can devastate your credit score and will remain on your credit report for seven years. In other words, your creditworthiness determines the impact on your credit score.
By the way, the Fingerhut FreshStart® Installment Loan does not report your payments to the credit bureaus. However, if you repay the loan on time, you can graduate to the credit account, which will report your payments.
The Fingerhut Credit Account can help build your credit score in another way. Over time, you may have your credit limit increased by Fingerhut. If you use only some of your credit, you will maintain a low , which helps boost your credit score.
How Does Webbank/fingerhut Credit Work
Apply for a WebBank/Fingerhut Credit Account online and get an answer instantly. If you are approved, shop and place your order. Make your low monthly payments1 in full and on time. Then you could be eligible for credit line increases, special offers and more. We report your payment history to the credit bureaus. It’s a great way to build your buying power with us!
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Pros And Cons Of Store Credit Cards
Consumers love credit cards. In fact, this popular payment method accounted for 38% of point-of-sale transactions in 2020, compared to 29% made with debit cards and just 12% made with cash, according to a report from Statista. Among those shoppers who prefer to pay by plastic, store credit cards are often included in the mix. Retail credit cards are hard for consumers to pass up, especially when store associates tempt them with a bonus discount on the first purchase just for signing… read more »
Any Of These Offers Can Help Rebuild Your Credit
The Fingerhut credit account is popular among those with bad credit who want to build their credit histories. However, it isnt the only way.
The truth is that any credit account, if handled responsibly, will report to the agencies that create your credit score and history. Consistent on-time payments and respect for the terms of your card will put positive marks on your report. After six months to a year of stellar performance, you could be considered creditworthy enough for a card with a great rate, excellent perks, and generous limits!
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Why You Can Trust Bankrate
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here’s an explanation for how we make money. The content on this page is accurate as of the posting date however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page.
How Does Fingerhut Work
You have to submit a credit application on the Fingerhut website. Your application will be for both the Advantage Credit account and Fingerhut FreshStart Credit account. Youll know which account youll get after you get approved by WebBank, which is the credit issuer. Both credit lines come with an APR of 29.99%.
If approved, you can start using your credit to purchase items offered on Fingerhuts website. Just log in to the company website and start shopping online. You can also request the company to send you a paper catalog via mail and place your orders over the phone or by mail.
You can call 1-800-603-7052 to place an order. Their sales representatives are available 7 days a week from 7:00 a.m. to10:00 p.m. .
Fingerhuts mailing address is:
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How Do You Redeem Rewards
How you can redeem your rewards can vary by card. But in general, here are some options you may get with your store credit card:
- Reward certificate good for use with the retailer
- Points that you can use at checkout to pay for online or in-store purchases
- Gift cards
- Cash back as a statement credit or direct deposit
The best store credit cards give you multiple options when redeeming your points or cash back.
Webbank/fingerhut Advantage Credit Account Agreement
You can cancel or close your Account at any time by writing to us at WebBank, Fingerhut Credit Account Services, P.O. Box 0260, St Cloud, MN 56395-0260. If we have issued you a card with your Account number, you must cut it in half and return it to us. You may not use your Account for any purchases after you cancel or close your Account.
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Fingerhut What Is It And How Does It Work
Posted on Last updated: February 23, 2022
Disclosure: This post may contain affiliate links, meaning we get a commission if you decide to make a purchase through our links, at no cost to you. Please read our disclosure for more info.
If you have bad credit, you may find it hard to get any type of credit card. Fingerhut is here to help. The company was founded to help people just like you. Its a retail establishment for people with bad credit and they promise to help increase your score.
Heres how it works.
In This Post:
How To Cancel Your Fingerhut Account
Canceling your Fingerhut credit card seems to be a straightforward process. According to Fingerhut, you must cut your card in half and send it via regular mail to Fingerhut.
The mailing address to return your card and cancel your account is:
P.O. Box 0260
St. Cloud, MN 56395-0260
Before you cancel, however, keep in mind that closing a credit card might lower your credit score. This is because canceling could shorten your credit history.
Your credit history is a measure of how long youve been using credit. Its one of five factors that determine your credit score, and it makes up 15 percent of your score.
Because the Fingerhut credit card doesnt have an annual fee, it wont cost you anything to keep it, even if you decide not to use it. You can simply throw it in a drawer and preserve your credit history without paying any fees.
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Better Alternatives For Building Credit
If you want to build credit, overpaying for products on Fingerhut isn’t the best option. Plus you’ll incur steep interest charges and fees if you carry a balance with the Advantage or FreshStart accounts.
CNBC Select recommends you consider one of these alternative ways to build credit.
- Become an authorized user on someone else’s account:can piggyback off of someone else’s good credit in order to establish or improve their credit. You’ll receive a card that can be used for new purchases, but you won’t be responsible for paying the bills . This is a low-risk way to build credit just make sure the account holder has a good credit score.
- Get credit for monthly bills with Experian Boost: If you have recurring utility, phone or streaming service bills, you may benefit from Experian Boost. This free feature allows you to link your bank account and get credit for paying eligible bills on time. Positive payment history from Netflix, internet, cable, gas, electric and water bills all qualify.
- Open a secured card: While you could have difficulty getting approved for a regular credit card with less-than-stellar credit, you may have better chances with a secured card, like the Capital One® Secured Mastercard®. Secured cards often have more lenient credit requirements and can be used like a regular credit card, but you’ll need to make a security deposit often $200 to receive an equivalent credit limit.
Jeff Pratley Wallethub Credit Card Advisor
Fingerhut credit was designed to be used for Fingerhut merchandise which accounts for more than 450,000 products, including the brand names like Samsung, Dyson, Skechers and KitchenAid. You’ll find electronics, jewelry, shoes, furniture and decor items. However, an additional feature of the Fingerhut credit accounts is the chance to use spending power outside of Fingerhuts catalog and website.Among the select partners that honor Fingerhut credit accounts are florists and insurance companies. These partnerships change, and Fingerhut will notify you of your eligibility to participate once your credit application is accepted.
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How To Build Credit With Fingerhut
If your credit score is low, you can use the Fingerhut credit card to rebuild your credit. This is because Fingerhut reports your payment history to all three major credit bureaus Equifax, Experian, and TransUnion.
To use your card to improve your score, simply make purchases and then pay them off on time each month. Its best to keep your purchases to a minimum so you dont run into a situation where youre carrying a high balance from month to month.
Can I Use My Fingerhut Credit Card On Amazon
Insider Advice: Getting the Most Out of Your Card For Fingerhut only: This card can only be used for purchases from Fingerhut, or for offers from select Fingerhut partners. Before making purchases you should check with other retailers, like Walmart and Amazon, to make sure youre getting the best available price.
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How Are Fingerhut Credit Account’s Perks
Based on reviews posted on popular review sites as well as from Fingerhut Credit Account’s website, Fingerhut Credit Account performs very well in terms of additional bonuses relative to other credit card stores.
One reviewer on said Fingerhut Credit Account performs well on additional bonuses relative to its peers. You can read the full review here. Specifically, this reviewer pointed out the following:
It offers a credit limit of $200-$800. Accountholders have opportunities for future credit line increases and deferred payment offers. They can also choose their due date. The account also has low monthly payments and depending on their credit, may have to make a $30 down payment on their first purchase.
What Is The Credit Limit Of The Fingerhut Advantage Credit Account
The Fingerhut Advantage Credit Account comes with a . Your credit line will be based on your overall creditworthiness, including your credit scores and other finances .
Weve seen reports of people getting automatic credit line increases after making timely payments. In some cases these increases may only be temporary, and require you to make purchases up to the new limit to make the increase permanent. So if you dont use it, you could lose it.
You may also be able to request a credit limit increase from Fingerhut. If you want a larger credit line we suggest making on-time payments for 6 to 12 months before making a request.
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What Is The Average Fingerhut Credit Limit
Online reviewers say they were approved for a credit limit ranging anywhere from $200 to $800. According to Fingerhuts credit account agreement, Fingerhut assigns initial credit limits based on an applicants creditworthiness.
According to Fingerhuts credit tips page, cardholders are eligible for credit limit increases as long as they pay their monthly bill on time. However, Fingerhut doesnt offer any additional information about how much of an increase you can expect to receive.
Well Help You Decide Which Store Cards Are Worth Getting
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.
The best store credit cards on the market know how loyal shoppers want to be rewarded. To find them, we looked at how much value you can get in various categories, including clothes, electronics, furniture, and home improvement. In addition to rewards, we examined promotional financing offers, discounts, and more. Here are our top choices.
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Which Stores Accept Fingerhut Credit
Fingerhut plays it close to the vest when it comes to identifying other places you can use its credit account. You have to own an account before you are offered deals from selected partners.
However, Fingerhut is forthcoming enough to mention that florists and insurance companies are two prominent types of selected partners. At one point, Telefora.com was a Fingerhut partner, but these designations can change over time.
The Fingerhut Credit Account is closed loop, meaning it can only be used at the issuing store and selected partners. The account is not associated with any of the major payment networks .
Although the Fingerhut Credit Account is closed loop, it allows you to purchase a wide array of goods and services from the online website or the printed catalog. The ease of obtaining a Fingerhut Credit Account is somewhat counterbalanced by higher prices at this retailer compared with the prices at competitors such as Amazon.
I opened up a Fingerhut account to help my credit score. They have numerous items you can buy and while yes, some of them are a little higher than you can get in stores, this does help build your credit. My score has gone up because they do report to the credit bureaus. I would highly recommend checking them out. Credit Karma Reviewer
Can I Use My Fingerhut Credit Card At Walmart
The Fingerhut credit card is a closed-loop credit card. This means it only works at the retailer that issued it. In this case, that means Fingerhut. Occasionally, they will partner with other offers which allow you to use your card with those companies, but Walmart isnt one of them.
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Free Fico Credit Score
Advantage Credit Account users can see one of their FICO credit scores for free after logging in. Your account must be at least 45 days old to use this service, and the score will be updated monthly.
We believe that Fingerhut will provide a FICO Score 8 based on your Experian credit report, but we havent been able to confirm this. Customer support wasnt able to give us this information.
If you have a Fingerhut Advantage Credit Account and can confirm the type and source of the FICO score, please contact us to let us know!
Many credit cards today offer a free credit score of some kind, usually either FICO or VantageScore. Youll get one with several of our top alternatives to this card, like the Discover it® Secured , Capital One Platinum Secured Credit Card , and the .