Fingerhut Credit Card

Who is Fingerhut Credit for?

A Fingerhut credit account is best for those seeking to finance their purchases despite having a tarnished to non-existent credit score. If you need to purchase items that you don't have the cash on hand to buy, you can use this credit card along with Fingerhut's catalog, to fulfill your needs.

Fingerhut sells a variety of items ranging from electronics to auto parts. With its wide selection, you will be able to find all the items you want.

This card also helps those with low to no credit score build their credit. With its reporting to the three major credit bureaus, your credit history will improve and be better known.

Unlike secured cards that are also aimed at improving your credit history, this card has a very high APR on purchases and can only be used on Fingerhut's catalog and its authorized retailers.

No Annual Fee

This credit card comes at no annual fee, regardless of which credit account you are approved for. Meaning, this card is suitable if you are just starting off with a credit card or have no extra money to pay the annual fee. If your living paycheck to paycheck, having no annual fee can really stick within your budget and limit overspending.

Transactions Reported to all 3 Major Credit Bureaus

All your on-time payments are reported to the three major credit bureaus: Equifax, Experian, and Transunion. With a strong reporting feature, this card allows you to make your credit-worthiness more widespread and known.

Limited Uses 

With your Fingerhut credit card, you will be only able to use it at certain retailers. Retailers partnered with Fingerhut and Fingerhut itself are retailers where you can use this credit card. You can't therefore, use this credit card anywhere as traditional credit cards would allow you to do. Furthermore, prices of various goods on Fingerhut’s website can be overpriced at times, with certain customers even being charged up to $30 for shipment of one purchase. 

To use your credit card for a Fingerhut purchase, you can request for a catalog to be mailed to you or simply log in to their website. You can order via phone, mail, or online.

Higher Prices

While Fingerhut does offer its credit card to those with low to no credit scores, they compensate for this risk by charging more for their products. Items that can be found for lesser value at places like Walmart or Amazon.com, tend to be higher when shopping at Fingerhut. For example, an iPhone 8 Plus can be financed for a total price of $1,129.99 through Fingerhut. However, this same item can be bought for as low as $549 on Amazon.com. While the $1,129.99 is not asked upfront, the installments do total that amount and so you would be paying more than if you had approached a traditional store.

With this in mind, it may not be worth using this credit card if you are conscious about overspending. You should only consider using this card on Fingerhut's catalog if you need an item immediately and have no financing available to fulfill that need.

Shipping Charges

On top of the already expensive items listed on Fingerhut's catalog, you will be charged shipping charges. These shipping fees are higher than what most retailers would charge. The iPhone 8 Plus that you're paying over $1,000 for, will cost you a shipping charge of $14.99. Stores like Walmart, Target, and BestBuy may not charge any shipping cost and if they do, it will definitely be lower than what Fingerhut charges. Since Fingerhut is only an online retailer, you will not be able to pick up your items in-store or avoid paying shipping charges that way.

Two Types of Credit Accounts

There are two types of credit accounts that you can be approved for: The WebBank/Fingerhut Advantage Credit account and the Fingerhut FreshStart Installment Loan account.

You will automatically be applying for both types of accounts in your application but will only receive one type, depending on your credit history and score.

The main difference between the WebBank/FingerHut Advantage Credit account and the Fingerhut FreshStart Installment Loan account is that with the WebBank account, you may not be asked to make a down payment.

With a Fingerhut FreshStart Installment Loan Account, you will have to make a minimum purchase of at least $50. Further, you must make a minimum down payment of $30. This downpayment can not be made through a credit card so you have to pay via other mediums like a debit card or check. You can pay off your balance in monthly installments divided in six or eight payments.

You will be promoted to a WebBank/Fingerhut Advantage Credit account once you've paid off your balance.

If you however decide to pay off the balance at the time of making your time payment, you will not be eligible for the loan or the potential upgrade to the WebBank credit account.

High APR on Purchases

This card has a really high APR on purchases of 29.99%. It is highly recommended that you do not carry over a balance from a previous month as it can end up being very costly. Other credit cards that help establish and fix your credit score, offer a much lower APR on purchases.

Conclusion

This card can be great for those that have no cash on hand and want to immediately make their purchase. This card accepts people with really low credit scores and histories making this card perfect for those that find themselves unable to gather the money required to make purchases. However, the higher prices and shipping charged by Fingerhut and its authorized retailers can really chip into your wallet in the long run. Therefore, this credit account should be used for very limited purchases that you find yourself absolutely needing. 

Also, this card can not be used at the spur of the moment as it can only be used at Fingerhut and it's authorized retailers. This means that this card should not be mistaken for a traditional credit card that lets you spend anywhere. 

At the end of the day, this card is only highly recommended for those looking to improve their credit score. For customers who are having trouble qualifying for other lines of credit, the Fingerhut credit account is a great option. However, you still have to use the card responsibly and manage your finances carefully to ensure that your credit score rises. While this card does help establish and fix your credit score by reporting to the three major credit bureaus, secured credit cards can better serve that purpose. In short, this card should only be considered if you find yourself in a tight financial spot and are able to fathom the thought of paying double if not triple the market value of certain items.

You can apply for the Fingerhut Credit Card online here.