The FingerHut credit card, which extends you credit when shopping through the FingerHut website or catalog, is designed for people with poor credit and has rather lenient credit history requirements.
With instant credit decision, no annual fee and convenient monthly payments that help you afford brand-name merchandise, is the FingerHut credit card really a good offer?
- Low monthly payments – When you make purchases with your Fingerhut card, you can pay what you can afford and then spread your purchase over low monthly payments. Balances between $125 and $199.99 have a minimum payment of $13.99, for example, while balances over $1,400 have a 5% minimum monthly payment.
- No annual fee or hidden costs – Most credit cards for bad credit are either secured or carry high fees. There is no annual fee for the Fingerhut card and no hidden costs like application fees.
- Reported to credit bureaus – If you’re trying to rebuild your credit, your Fingerhut account will be reported to multiple bureaus. Some cardholders report, however, that their account was not reported or only reported to one or two of the 3 bureaus.
- Easy approval with instant decision – The Fingerhut card is one of the easiest unsecured cards to get with bad credit. You’ll get a decision in just a few seconds and may start shopping right away if you’re approved.
- High credit limits – Most people also report rather high credit limits with the Fingerhut card compared to most credit cards for bad credit. Your account is periodically reviewed and you can expect credit limit increases fairly often if you pay on time.
The FingerHut credit card can only be used for phone, catalog and Internet purchases through FingerHut. While the retailer does offer brand name merchandise, expect to pay more here than you would anywhere else.
Important Note: This offer is essentially a line of credit for the Fingerhut site, and not a true credit card that can be used at most retailers.
The truth is that this offer was clearly designed for people with who are looking to build credit. Using this offer to build credit is not necessarily a bad thing, but be aware that it will cost you money.
There are some good deals on the website, but many items have a mark-up that’s 15 to 55% higher than other retailers like Amazon. The credit card also has a high APR of 24.90%, which is in line with gasoline and store credit cards – so avoid carrying a balance.
If you pay off your balance on time and don’t make purchases near your credit limit, you should be able to avoid any significant interest charges and still enjoy low monthly payments.
The FingerHut credit card is not perfect, but it can be a good way to rebuild your credit history if you don’t want a secured credit card. It’s hard to be denied for this credit card and, assuming you always pay off your balance in full each month, you’ll see regular credit limit increases that improve your credit score.
When used appropriately, a Fingerhut credit card can be a great tool to rebuild your credit history and get back on your feet.