The Fingerhut card is not a regular credit card. It is a store card intended for use only on Fingerhut.com.
If you’ve received a Fingerhut card offer in the mail or are applying for the card on their website, it is imperative that you first understand what you’re getting into.
Learn the pros and cons of getting this card and how it stacks up against other cards?
What Is Fingerhut
Fingerhut, for those unfamiliar with the name, is an online shopping platform that sells everything from electronics and furniture to baby clothes and fitness equipment. Think of them as a mini Amazon.com.
Even though the company primarily does business online, it is not a new “dot com” era company. Fingerhut started as far back as 1948, mostly as a mail-order catalog company, allowing customers to make installment purchases on household items — even customers with bad credit.
These days, they operate online and provides customers with a storecard that allows customers to make purchases and pay in monthly installment.
How Does The Fingerhut credit work?
Just like a regular credit card company, Fingerhut invites people to apply for their storecard online. Sometimes, they send store card offers out in the mail. If you’ve received one of those offers, or you’re thinking about applying for the store card, here’s what you should know.
Types Of Credit Fingerhut Offers
Fingerhut extends two different types of credit: The Fingerhut Advantage Revolving Credit Account and the Fingerhut FreshStart Credit Account.
Fingerhut FreshStart Credit Account
The Freshstart Credit Account is Fingerhut’s introductory credit account for customers — mostly customers with poor credit. This account helps buyers build a reputation with Fingerhut by making a $30 down payment on a 1-time purchase.
The customer then makes a monthly installment payment on their balance. When the balance gets cleared, and everything works out fine, Fingerhut may reward the customer with the Fingerhut Advantage Revolving Credit Account — a higher level credit account.
Fingerhut Advantage Revolving Credit Account
The Advantage Revolving Credit Account is for people with slightly good credit scores or those who have a good payment history with Fingerhut.
It differs from the Freshstart Credit Account in that it functions as an actual credit card on Fingerhut’s website.
Customers do not have to make a down payment or a security deposit to buy something. They can buy it outright as you would with a regular credit card.
Where Can You Use Your Fingerhut Credit Card?
Fingerhut store cards can only be used on Fingerhut.com. Even though the brand claims that customers can use their Fingerhut store card to make purchases at select online florists and insurance companies, it is not clear who or what these companies are.
Pros And Cons Of Using Finger Credit Account
Pro
- Finger reports credit activities to the three leading credit bureau.
- Fingerhut Allows Installment purchase.
- No annual fee
Cons
- Prices are significantly higher on Fingerhut.
- 29.99% Interest rate
- $39 late and returned payment fee
Shopping On Fingerhut.com
Shopping on Fingerhut can be torturous experience, especially if you’re someone who does comparison shopping. The prices on Fingerhut are vastly higher than the prices for similar items on other websites.
For example, the price of a Coleman Trail 200 196cc Gas-Powered Mini Bike on Fingerhut is $819.99. The price for the identical bike on Amazon is $519.99; that’s a $240 price difference. See the graphics below:
The only comfort customers get from buying on Fingerhut is that they get to pay in installments. Moreover, for those with bad credit who are in a jam and can’t get credit anywhere else, Fingerhut may have been their only choice.
The situation documented above is not unique. Our analysis of the prices of many items on Fingerhut’s website shows that overpricing is pervasive.
If you are thinking about getting a Fingerhut credit account, paying for highly overpriced items is something you will have to get comfortable with.
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Bottom Line
Getting a Fingerhut Credit Account or shopping on the platform is not a great idea if you have good or excellent credit. There are better options out there with more reasonable terms.
Products on Fingerhut are highly overpriced, and the company constrains their cardholders to use their cards only on Fingerhut — denying them the option to purchase those same products for lower prices at other online retail stores.
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