The Fingerhut Credit Account offers a credit card for bad credit that is easy to qualify for and has no annual or other recurring fees. For people with a limited credit history, it can be tough to get an unsecured credit card that doesn’t engage in fee harvesting — the practice of tacking on fees that eat into a cardholder’s credit limit and can lead to costly interest charges.
The Fingerhut Credit Account is issued by WebBank, a lender that offers savings and time deposits. WebBank also has brand partnerships with a number of big companies, including PayPal, Avant, Yamaha and Fingerhut, offering business loans, auto finance loans and credit cards through these companies’ platforms.
The is a bit unique. Unlike many private-label cards, it reports to the three main credit bureaus, so you can use it to build credit. Like private-label cards, however, you can only use the card to purchase items through Fingerhut’s catalog or online store.
What we like about the Fingerhut Credit Account
- It’s easy to get approval for this card even if you have been turned down by other lenders.
- Fingerhut Credit Account reports to all three of the main credit bureaus — Experian, TransUnion and Equifax — so that you can use the card to improve your score.
- There is no annual fee or other recurring fees.
Things to consider
- If you are looking for a card to make daily purchases, this is not it. Fingerhut Credit Account only allows you to make purchases through its catalog or online store.
- At 25.90%, the variable APR rate on this credit card is high.
- The prices at Fingerhut tend to be higher than identical and comparable products sold elsewhere. If you want to pay for a big-ticket item over a few months, you’ll have to pay the steep APR as well, which could add hundreds of dollars of interest on top of your purchase.
Fingerhut Credit Account private-label details
Most consumers are familiar with private-label credit cards, an industry that experienced an annual growth rate of 3% from 2016-2018, according to Packaged Facts. Managed by a bank or commercial finance company and not bearing the Visa or Mastercard insignia, these cards allow you to purchase items through a single retailer in installments or at terms you would not normally qualify for.
Some private-label cards offer loyalty rewards to members, but the is fairly simple when it comes to rewards. In this sense, it is less of a loyalty card and more of a line of credit. In fact, if you don’t qualify for the Fingerhut Credit Account, you may be eligible for a FreshStart Installment Loan, also offered through WebBank. You are automatically considered for this line of credit when you apply for the Fingerhut Credit Account.
Fingerhut’s goal is for you to use its card to make purchases through its online store and catalog, but you don’t have to do that in order to improve your credit score. Because the card has no annual or other recurring fees, you can simply hang on to the open line of credit, using it to boost your credit utilization. Used in conjunction with another credit card for bad credit, this can be a good strategy for success.
Fingerhut Credit Account fees
has a high variable APR rate of 25.90%, and the card begins charging interest from the date of purchase if you have an outstanding balance. There are two penalty fees, a late fee and a returned payment fee, both up to $39. There is no annual fee, start-up fee or monthly fee. You can avoid paying interest by paying your entire balance by the due date at the end of the 24-day billing cycle.
How does it compare to other private-label cards?
Because the is a bit unique, the best comparison is between a co-branded credit card for bad credit, like the , or another classic private-label card called Ward’s Credit. All three cards are tied to a single retailer and easy to qualify for with bad credit.
| Card | APR | Annual Fee | Intro Bonus | Credit Needed | Key features |
| Fingerhut Credit Account | 25.90% APR | $0 | None | Poor | Reports to the three main credit bureaus |
| Official NASCAR® Credit Card from Credit One Bank® | 19.49% to 25.49% Variable APR | $0 - $99 | The annual fee is discounted during the first year. | Poor | 2% cash back on purchases from the NASCAR shop; 1% cash back on eligible gas and automotive purchases; Deals and discounts for NASCAR fans |
| Ward’s Credit | 5.75%-25.99% APR | $0 | None | Poor | Payments as low as $10 a month; Credit limit increases when you pay your account on time |
The bottom line
Because of its low fees and easy of acceptance, is a good card for rebuilding credit, provided that you use it wisely. You don’t need to shop through Fingerhut’s platform regularly to improve your credit score. Simply having the card will have a positive effect on your credit because it lowers your overall credit utilization. If you make the occasional purchase and pay it off in full by the end of the billing cycle, so much the better — but make sure you select competitively priced merchandise.
Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author's alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser's page for terms & conditions.
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