If you’ve got limited credit or bad credit and have had trouble being approved for a line of credit, the Fingerhut credit account could be the answer you’re looking for. It offers instant approval to many applicants, even if they’ve been turned down for other cards. Unlike a secured card, there’s no deposit required. And there’s no annual fee. Unlike a traditional MasterCard or Visa, you won’t be able to make purchases in stores or use the card in restaurants, but you can use it to buy items from the Fingerhut online catalogue.
|Credit level recommended:||Limited / None|
|APR on purchases:||24.90%|
No over-the-limit fee, fast response to your application, and offers a credit line for people who think they won’t get approved. Shop online for clothing, computers, jewelry, electronics, and appliances – hundreds of items are available through the Fingerhut catalogue.
The Fingerhut credit account, like many credit programs for people with limited credit, doesn’t offer a rewards program.
There are no rewards to redeem.
The big benefit of a Fingerhut credit account is the ability to build credit for people who have either no credit or damaged credit. Fingerhut reports account activity to major credit bureaus, which means making payments by the due date can help bump up your credit score over time. And after several months of making on-time payments, your credit limit might be raised, which will improve your credit score even more.
This credit account might not seem like the best deal because of the high APR (24.99% is one of the steepest rates around). And the fact that you can only use it to purchase things through the Fingerhut catalog, either print or online, is limiting. However, for customers with less-than-perfect credit, this can be a great choice. Why? Because unlike a secured card, this account has no annual fee, no startup fee, and no deposit required. Many people who have bad credit look to secured cards, like the Capital One Secured MasterCard. Those cards have their own set of advantages, such as being accepted anywhere that takes MasterCard, but they also require a down payment of collateral. If you’d rather not put down that deposit – which can be more than $200 – then the Fingerhut card is a good way to begin mending your credit. Make small purchases that you can easily pay off, then pay them in full before the payment due date. That way the high APR won’t matter, because no interest will be applied before the grace period ends. In time, and if you don’t do anything else to damage your credit history, your credit score will improve and you’ll be eligible for a regular credit card – possibly one with a great rewards program!