Rebuilding FICO Credit Score With Fingerhut Credit Account: Pros and Cons

Fingerhut is an online retailer initially selling automotive stuff such as car seat covers, mechanical tools. The company was founded in 1948 by William Fingerhut and his brother Manny. Since its inceptions, the company has undergone major market repositioning, and now the company is selling various products including electronic appliances, video game, consoles, merchandise, apparel, shoes and all other products you will typically find in an online retailer like Amazon or eBay. Unlike Amazon or eBay the company offers credit line for individuals who want to pay their purchase in installments, the credit account works much like credit cards do; it has a credit limit, and you can get an increase on your existing limit after several months.

 

Rebuilding FICO Credit Score With Fingerhut Credit

Many mistake Fingerhut for a credit company while in fact, it is an online shop with one notable distinction; You can buy products from them on credit facilitated by WebBank. You can not use a Fingerhut credit account anywhere as the credit account is only designed for shopping in their online shop.

You can take advantage of the Fingerhut credit account to rebuild your credit score as the company report to credit bureaus. According to some testimonials I found on the FICO forum, Fingerhut report to both Experian and TransUnion, while other credit account holders said Fingerhut only report to one of the above credit bureaus. It will be a smart choice for you to double check by calling their customer service to find out more about which credit bureaus they use.

Anyway, no matter which credit bureau Fingerhut uses, you can take advantage of their credit line to improve your credit score. If you make regular purchases and make the on-time payment, you can get a jump on FICO credit score, like this guy here who got an increase of 26 points.

How to Get Approved for Fingerhut Credit Account

First of all, you need to apply for a credit account on their site and click on the confirmation link sent to your email. Make sure you enter the correct and accurate information, such as email address, social security number, phone number and verifiable address. After confirming the registration link sent to your email, you can then log in to the site using the username and password when registering your account.

 

Fingerhut registration form for new user

 

What Next to Get the Fingerhut Credit Approval?

A new Fingerhut account holder is eligible for an online discount program with free shipping code. Make sure you pick the Fingerhut “Fresh Start Program” and purchase something worth more than $50.

  1. Pay your purchase in full or in two installments. Afterward, Fingerhut will ship your item free of shipping fee.
    Fingerhut will in most cases grant you a credit account after your first purchase. You can check your credit application status by regularly checking your email or contacting their customer service email or give them a call at the following number :
    1-800-208-2500 (Monday – Friday, 8:00am – 8:00pm Central Time)
  2. If your application for the Fingerhut gets approved you can log in to their site to see your available credit, make payments, track orders and more.

Finggerhut account login

Frestart Graduation and Annual Fee

  1. To get Fingerhut Fresh Start graduation, you need to buy other products with 6 -8 installments Use your credit account to buy other products; you will get an increase on your credit score before the first month is due.
  2. When does Fingerhut increase credit? After paying your installments for several months, Fingerhut will raise your credit limit and then increase your credit limit again for the second time. You can ask for another credit limit increase you have a good payment history, so make sure you pay the installment on-time or ahead of the due date.
  3. Unlike credit card, there is no annual fee Fingerhut charges on your credit account, leaving those with bad credit no additional obligation, however, they charges a hefty $38.00 per month for late fee and returned payment.

Pros and Cons of A Fingerhut Credit Account

As You learn above one of the key benefits of having a credit account with Fingerhut is you can rebuild your credit score in no time fairly easily, yet this benefit comes with a price. The notable downside of having their credit account is you need to pay more for the same items found in other online retailers. The price disparity can be quite big, for example, you can buy a vacuum cleaner 10-20% cheaper on sites like Amazon. Another catch is the Fingerhut credit account come with Annual Percentage Rate of 26.4 %, significantly higher than the rates offered by other creditors. Other things you need to consider; Fingerhut  imposes late fee and returned payment fee up to $38.00 per month.

 

Finggerhut ATR

Conclusion :

Fingerhut is beneficial for those having bad credit who want to rebuild their credit score. The credit account is a good alternative for those considering improving their credit score. The company report to credit bureaus, namely Experian and TransUnion or either one of them. However, the benefit comes with a catch; higher Annual Percentage Rate and higher prices for the products they sell in their online shop.

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