Fingerhut Credit Review: Easier Access to Credit, But with Costs

If you’re looking for a way to buy something and pay it back over time, but your credit isn’t great, you may have considered shopping with Fingerhut.

Fingerhut is an online catalog and merchant with thousands of products ranging from electronics and bedding to auto parts, all available for purchase and finance through the company’s line of credit. The retailer caters to those with less than stellar or no credit histories, so applicants may have a better chance of approval with Fingerhut than with some large issuers.

But unlike others credit cards for poor credit, you can only use Fingerhut Credit to purchase items from Company Offers or Authorized Partners. You will also come across high prices and high interest rates, so make sure you understand what you are getting with a Fingerhut line of credit.

In this review

  • How Fingerhut Credit Works

  • The WebBank / Fingerhut Advantage credit account

  • Fingerhut FreshStart installment loan issued by WebBank

  • Positive characteristics to keep in mind

  • Alternatives to a Fingerhut credit account

Shopping with Fingerhut

If you’ve been approved for a Fingerhut credit account, you can log into the company’s website to browse their products or request that a paper catalog be mailed to you. Orders can be placed online, by phone or by mail.

It is important to know that Fingerhut charges higher prices for its merchandise than other retailers, so while it may be easier to get a credit account at Fingerhut than elsewhere, you will pay a premium for it. privilege to shop the catalog.

While it may be easier to get a credit account at Fingerhut than elsewhere, you’ll pay a premium for the privilege of catalog shopping.

NerdWallet analyzed the prices in several different categories – from arts and crafts and mixers to children’s shoes, televisions and tool sets – and found that without exception, the prices of Fingerhut were significantly higher than the price of average retail on Amazon or Walmart.com.

Not only will you pay more for your merchandise than if you had purchased from another retailer, the total price displayed on the Fingerhut site does not include the 29.99% annual percentage rate to have a balance.

As an example, Fingerhut offers a 43 ” Samsung Smart LED TV for $ 579.99. In a bigger, bolder type, he notes that the payments are $ 46.99 per month. Without any finance charges, it would take you about a year to pay off the balance.

But take into account the 29.99% APR and, according to Fingerhut’s existing balance payment table, an item that costs between $ 550 and $ 649.99 with payments of $ 46.99 will take 18 months to be refunded, for a total amount paid of $ 807.49.

And then there’s shipping: Fingerhut charges a higher than average fee to get your purchase to you. According to Fingerhut Shipping and Handling Chart, that Samsung TV you’re already paying a premium price for will also cost you an additional $ 29.99 in shipping, bringing your grand total to $ 837.48.

Amazon and Walmart both offer the same TV for under $ 400 and both offer free shipping on an item at that price.

How Fingerhut Credit Works

There are two types of Fingerhut credit accounts:

  • WebBank / Fingerhut Advantage credit account.

  • Fingerhut FreshStart installment loan issued by WebBank.

When you submit a credit application on the Fingerhut website, you are requesting two accounts. You won’t know which one you are approved for until you apply.

When you submit a credit application on the Fingerhut website, you are actually applying for both accounts. If you are not approved for the WebBank / Fingerhut Advantage credit account, you will automatically be considered for a Fingerhut FreshStart® credit account issued by WebBank. You won’t know which one you are approved for until you apply.

Both lines of credit are issued by WebBank and are designed to allow you to purchase the goods from Fingerhut and pay for them on a payment plan with an APR of 29.99%. This is where the similarities end.

The WebBank / Fingerhut Advantage credit account

The WebBank / Fingerhut Advantage Credit Account is a closed loop store credit card, which means it is an unsecured account that you can only use to make purchases with Fingerhut or authorized partners. . More on that later.

  • The interest rate on purchases is 29.99%.

  • Late or returned payments will be charged a $ 38 fee.

  • You may or may not be required to make a deposit on your first purchase. You won’t know it until you apply.

If you are not approved for this account, you will automatically be considered for a Fingerhut FreshStart® credit account issued by WebBank, which has different terms and structure.

Fingerhut FreshStart installment loan issued by WebBank

If you are more approved for the Fingerhut FreshStart installment loan, it takes place in three steps:

  • Make a one-time purchase of at least $ 50.

  • Then make a minimum deposit of $ 30 and your order is shipped after payment is received. Credit cards are not accepted for down payments, so you will need to use another option including a debit card, ACH payment, paper check, or money order.

  • Repay the balance in monthly installments divided into six or eight installments.

If you pay for your purchase within this time frame or earlier (without any late payment), you can upgrade to a revolving Fingerhut Advantage credit account. Note that if you decide to pay your entire balance owing when you make your down payment, you will not be eligible for the loan or any possible upgrade.

The terms and conditions give examples of the costs involved:

6 monthly payments of $ 3.63

6 monthly payments of $ 12.71

Positive characteristics to keep in mind

In addition to offering a high probability of being approved, a WebBank Fingerhut Advantage credit account has a handful of other beneficial features:

  • Fingerhut Credit can be used through select partnerships with other retailers, such as florists and insurance companies. For example, at the time of this writing, you can use your Fingerhut account to make a purchase from Teleflora.com at the same prices available to the general public.

  • According to the Fingerhut website, on-time payments will be reported to the three major credit bureaus, which means that good payment behavior can improve your credit scores. If you consistently pay your bill in full and on time, you could potentially qualify for a credit card that you can use anywhere, not just at Fingerhut.

  • There is no penalty on the WebBank Fingerhut Advantage credit account for paying your balance before the due date.

Alternatives to a Fingerhut credit account

While it may seem tempting to apply for a credit card from a company that suggests directly on their home page that you can “get the credit you deserve,” there are other options that are probably better off on the market. financial plan, even if your credit is not great.

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If you have the minimum opening deposit of $ 200, the OpenSky® Secured Visa® Credit Card can grant you a secure credit card without a credit check or even bank account. The card also reports to the three credit bureaus, so if you have good payment behavior, you can improve your credit profile. Better yet, you can use the OpenSky® Secured Visa® Credit Card to buy from any retailer of your choice, giving you the freedom to compare prices. It has an annual membership fee of $ 35.

Discover it® secure credit card
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If the idea of ​​an annual membership fee isn’t right for you, consider Discover it® secure credit card. It has an annual membership fee of $ 0, and Discover will also consider letting you get an unsecured card from eight months. It is also one of the only secure cards to earn rewards. You’ll get 2% cash back at gas stations and restaurants on up to $ 1,000 in spend per quarter, and unlimited 1% back on all other purchases. In addition, you will be eligible for a bonus that discovers phrases in this way: INTRO OFFER: Unlimited Match Cashback – only from Discover. Discover will automatically match any Cash Back Rewards you’ve earned at the end of your first year! There is no minimum spend or maximum rewards. Just a dollar-for-dollar match.

If you have a credit report but it is thin, the Deserve® Pro Mastercard is a valid option. No security deposit is required, and even if you don’t have established credit, the issuer can use their own underwriting process to determine creditworthiness, based on income and employment verification requirements. The card also offers cash back rewards: 3% cash back per dollar spent on travel and entertainment, 2% cash back at restaurants, and 1% cash back on all other purchases.


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