Home > Credit Score > Fingerhut: Is This Credit Building Program a Good Deal?

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Are you trying to rebuild your credit? Fingerhut, an online retailer, says it wants to help with its FreshStart program, a new twist on the old “catalog card” offers that have come and gone over the years.

Designed for customers who have been turned down for Fingerhut’s credit card, it gives customers a second shot at proving their creditworthiness so they can qualify for Fingerhut’s regular credit cards.

But is it any good? Here’s how Fingerhut describes the program:

  • Fingerhut FreshStart® is an installment credit program.
  • You begin with a one-time purchase. This purchase is between $50 and your credit limit. You can choose the products you like in your price range.
  • You make a $30 down payment when you place your order.
  • You pay off the balance in six or eight easy monthly payments. You may pay it off even faster, if you’d like!
  • When you’ve paid off your balance, with each monthly payment on-time, and in full, you graduate to a regular (revolving) WebBank/Fingerhut Credit Account with a larger credit line.
  • It’s that easy. There’s no catch. You are simply rewarded for being a good Fingerhut customer.

This program looks like a more legitimate version of “catalog card” programs that are marketed as credit cards for rebuilding credit, but can only be used to shop from the issuer’s catalogs. With those offers, the merchandise is often severely overpriced and customers usually find little benefit in rebuilding their credit.

Fingerhut, on the other hand, has a popular catalog that has been around for a long time and has a loyal following among its customers. Presumably some of those customers have been hit hard by the economic downturn, so much so that they are turned down for Fingerhut’s traditional credit card program. To keep them shopping, Fingerhut came up with this program. From that standpoint it’s brilliant; they don’t have to turn shoppers away. (It’s probably also no coincidence that the program is launching at the start of the holiday shopping season.)

But the biggest concern for customers is that they will just focus on the small down payment and monthly payments, and lose track of how much they are really spending. When they do, they’ll pay interest. So instead of buying an item on sale, they are paying more by the time the bill is paid off. The interest rate is 24.99%, which is not unusual for a retail card or credit cards for those with bad credit, but it’s high compared to the average credit card rate of about 15%.

And you may not be able to get out of paying at least some interest on purchases. While the marketing materials says purchases can be paid off faster, the terms and conditions warn:

However, if you elect to pay your entire balance due at the same time as your down payment, then this will cancel your Loan and you may not be eligible to be considered for a WebBank/Fingerhut Credit Account. You may not be eligible to be considered for a WebBank/Fingerhut Credit Account if you die, file for bankruptcy, enter a consumer credit counseling service program, make any past due payments, or have any payments returned unpaid, or if you enter any other negative credit status. (Emphasis added.)

Customers who don’t read the offer carefully may miss the fact that they are not building credit with anyone other than Fingerhut when using the FreshStart program. They must pay off purchases under this program on time before graduating to the regular card. It’s not designed to be a way to build credit references with the major credit reporting agencies.

This program is fairly new, so I haven’t heard complaints about it. I also haven’t heard many complaints about their credit card, which may be due to the relatively small number of cardholders who carry it. When I searched the web for Fingerhut complaints, I found a few such as this one:

Calling and harassing wife who has had a massive stroke over $19.17 the total amount for the product is 130.00+ interest!. It is difficult for my wife to speak, yet this person insisted on talking to her and kept her on the phone while he kept making mistakes concerning the issue. She cannot hold a phone at any length of time and speaking is extremely hard for her. We are on Social Security and send our payments per money order yet if it’s not there on the date they require, they call and harass my wife.

So what’s my take? If you really love shopping at Fingerhut and you can’t qualify for one of their credit cards, then you may want to try the Fingerhut FreshStart program for rebuilding your credit. Limit yourself to a small purchase of something you’d buy anyway and pay it off as quickly as you can. But if what you really want is a credit card to rebuild credit, get a secured card and pay the balance in full each month. You can get your free credit report summary every month on Credit.com to track your progress over time.

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  • http://Yahoo.com Diane Dunn

    I need to make a down payment to open my credit thank

  • Rodney Nelson

    I would like to refute some of these erroneus claims. I am about to finish off my FreshStart program through fingerhut and I am highly pleased. Not only because I got to get something nice for the woman I love and make payments. My credit score jumped 9 points after making my first payment to them. After that my credit jumped 36 pts. Ive gone from bad to good credit and qualified for a Zales credit card all by starting out this way. It does help your credit if ALL payments are made on time

    • http://www.Credit.com/ Gerri Detweiler

      That’s great to know Rodney. How exactly did it work for you? I assume you graduated to the Fingerhut card, so that your info will be reported to the credit reporting agencies, correct?

      • Bleusky Label

        Fresh start program reports to the credit agency

      • Chris Schlagal

        i started with 180 freshstart then payed it off in 2 payments now i have 200 for a regular credit account.

        • YepItsMe

          Well, one thing that tells me is that it depends on just how poor your credit is! Mine, I only get $150, but I’m happy with that. I only want to try to get around $50-60 to start.

      • darksavior

        no i will be paying off on the 1st of feb still under fresh start

    • John Iii

      Jumping a whole 9 points had NOTHING to do with Fingerhut. What happened is your bad debts aged enough that improved your score. They don’t report while your under Freshstart. They just prove how little folks actually know about credit.

      • Cjackson

        Fingerhut freshstart does report to the credit agencies.

        • http://www.Credit.com/ Gerri Detweiler

          Cjackson – have you used it? Curious to hear about your experience.

          • Brie Mason Leslie Rylee

            I have fingerhut. They do report to the credit agencies. It’s on my credit report. I have enjoyed my account. And as long as you pay on time and more than the minimum payment the interest is not bad.

          • darksavior

            i just got on fingerhut fresh start and checked my report yesterday and there it was fingerhut

        • YepItsMe

          I wasn’t worried that it would not report elsewhere, as I was just ecstatic I’m getting a new chance. My life sucks so bad, lemons taste sweet. I’m grateful they’re giving me another chance. That they’ll report me as doing well is an exciting added bonus! I never thought I’d have a second chance at improving my credit score, ever since my husband became critically ill and we had to foreclose. We have NO life savings left. So maybe — just maybe — this is the start of something wonderful for us.
          (Does anybody have certain things they recommend in particular? Years ago we bought a little convection oven from them, and we still use it — more than the big one! Any other suggestions? I only want what we NEED.)

      • Steph

        you’re wrong buddy!

      • Crystal

        They are reporting on my credit report freshstart with the fresh start program. My credit went up 47 points immediately and when done with on time payments its gone from 446 to 601. U should research b4 u speak nonsense. There are plenty of blogs that show this program helped them get barclays discover andvece Amex.

  • http://billcollectorshateme.blogspot.com/ Bill Collectors Hate Me

    I agree with Rodney. Fingerhut is a great option to help rebuild credit. I’ve used them solely for that purpose and they have been very helpful in improving my credit score! I highly recommend Fingerhut!

  • http://www.bodymods4u.com/ Amber Adams

    I also have a Fingerhut Fresh Start credit account. Fingerhut’s description for the credit account states that they report to the 3 major credit bureaus. I made my first payment at the end of last month and did notice that my credit score increased 11 points after that first payment and I am sure that is what had to increase my score because I do not have credit anywhere else! The interest rate may be a little higher than other credit companies but Fingerhut does carry some very nice products! Since it also helps build your credit, it is worth paying the higher interest rate, especially if you make a smaller purchase and pay it off after 90 days! I personally contacted Fingerhut concerning the issue of paying your purchase off early and was informed as long as you do not pay it off before 90 days (wait at least 91 days which means make 3 installment payments), it will not affect your ability to get a revolving Fingerhut Credit Account and they will still report to the credit bureaus.

  • http://www.credit.com/ Credit.com Credit Experts

    Teo —
    Your first move should be to write to the credit card company and ask them to correct your account information in their records. (It would be a good idea to do this registered mail.) Then, when they report the account, they should report the correct SSN, that should make it match to your credit report. Please document all your correspondence.

    Give them a couple of months to fix the records, and then request a copy of your credit report to confirm that is it reporting correctly (or to have the wrong SSN removed if it is somehow associated with your name).

    • Susan Ruppert

      Hello–If anyone here wants info on Fingerhut, I have been on the other side of the coin. As a former employee, I would NEVER apply for their account, no matter how bad my credit was—there are always other options. I left because of unethical practices–not illegal, but unethical. I could not follow what they consider to be their best business practices and look at myself in the mirror every day at the same time. I don’t know how anyone could either.

      • George Amsterdambuhd

        I have a question Susan .. Gwynn Theule Mentioned that her daughter had a fingerhut account and paid off the account early. Is it true that I have to continue to spend, pay off, spend pay off in order to keep them from sending negative information to the credit bureaus? What is this $4 that turned into $180 that Gwynn is referring to. I was approved for a $300 limit, I was going to order something tonight and pay it off by fri.. 3 days from now. What would happen if I only want that one item and just pay it off.. will fingerhut close my account with a negative mention to the credit companies? What is it that they do so horribly? I understand the high interest, which i’l take for now to build the credit. but what is going on over there? Thanks for offering your experience to the forum.

  • Monica Brandt

    Can this program help me build good credit

    • John Iii


    • chris

      Yes it has mine. I started with a credit score of a 520 and close to a year later im at a 581 because the do report to the credit agencies

  • Monica Brandt

    I would like to be given a chance to be apart of the fresh start progra




    • http://www.credit.com/ Credit.com Credit Experts

      Ricardo —
      The people who could answer your questions best would be the credit card issuers. We cannot tell you which credit reporting agencies receive which report. You can — and it sounds like you are — checking your reports yourself (you are entitled to one free one per year from each of the three major credit reporting agencies). But it may well be that you need to give it a bit more time. This post addresses the time it takes for your score to reflect changes:
      Credit Score Updates: How Long Will It Take?

  • Britt Cone

    Not true, Mike West. They now carry tons of brand name items, and they are not “cheap”, “old” or “discontinued”- I have bought two brand name items that were within the normal price range and new on the market. They used to carry cheap junk. Check the website before posting.

  • John Iii

    I don’t think i’m gonna care if i’m turned down when i’m dead.. but eh maybe that is just me

  • http://www.Credit.com/ Gerri Detweiler

    Tavoa – Are you trying to build your credit scores? If so, have you checked what your credit scores are? You can
    get your free credit score here. I’d recommend you get yours and see where you stand. This isn’t the only way to build credit.

  • downtowndcmilan

    You can not expect them to throw you an increase making the minimum payment each month. You have to pay the entire balance the next bill due date. Maybe will have better luck with smaller priced items. It’ll work, Give it a try.

  • Tonia

    I got a vacuum cleaner with the fresh start account. That was Feb 2013. Paid it off, July 2013 they gave me a reg. account with a 250.00 credit line. Now its Dec 2014 and my credit limit with them is 1750! They give credit line increases often, tons of name brand items. Key is to buy when they offer free shipping or you pay way to much!!

    • http://www.Credit.com/ Gerri Detweiler

      Good to know. Thanks for sharing your experience.

  • http://www.credit.com/ Credit.com Credit Experts

    Good to hear it’s working out for you.

  • http://www.Credit.com/ Gerri Detweiler

    Good to know! Thanks.

  • http://www.Credit.com/ Gerri Detweiler

    She might want to try to file a complaint with the Consumer Financial Protection Bureau.

  • Matheia Wrighton

    I was to not expecting to open a fingerhut account but I did I started with the fresh start where I put down 30 and I ordered something small paid that off and now I have a regular fingerhut card and I also check my credit it all so went up by 11points .When I checked my credit report finger hut was up there so I here for they do put it on your credit .I now it did mine. So with that said they do put it on your credit.

  • Jeremy Rodriguez

    About a year ago I applied for a finger hut account. I got approved under the regular card with a 500$ limit. At the time no one else would approve me. I paid above the minimum payment and paid a couple small collections off my report and then I got an offer for capitol one credit card. I also used that responsible with a low balance and paid over the minimum payment each month. After a year I now have a credit limit of 1300 on my finger hut with a 0 balance that still reports on time payments and I have a limit of 1750 on capitol one that started at 1000. I now applied for an amex with my bank and got approved for a 2000 dollar limit. All in all finger hut it’s not the cheapest but it did help me get to where I want to be on track to raising my credit score 150 points in one year.

  • dpartn .

    Most anyone with bad credit has to be aware of the realization that they are going to pay a higher price, or interest rate to reestablish themselves. Finger hut has evolved over time and while yes there are Some items you should clearly stray away from (generally electronics like iPods, cell phones, laptops, etc) because they are overpriced on the site. However there are many many things you can buy for the same price (sometimes even lower) than a more mainstream site. Finger Hut is now part of web bank, so if you treat them right and evolve to a conventional account, over time you will qualify for any credit that Web Bank issues which is quite a lot. And of course it helps your credit in general. This is not a bad account for helping to rebuild your credit. You just have to use it To do that and select the items you choose to buy carefully and understand your goal. Buy items that are not markup items (again, electronics are the big one to avoid) no matter how tempted you are, and stick with the stuff that is normal priced and you will be just fine and build credit too.

  • Rip Sumrall

    So maybe i don’t get it, you really need a $800 TV or shoes or whatever, so badly, you are willing to pay 25% interest? Save then buy with cash, if you can make payments you can save. You don’t need it RIGHT now. We aren’t talking about food here. Credit is the bane of this country not a boon.

    And if you are try to rebuild your credit rating, doesn’t that mean you should avoid credit like the plague? Fail once and learn, fail twice… really? At the rates Fingerhut charges failure is an obvious result.

  • Mzwilsons2flyy

    I started with the fresh start program and my credit score jumped quite a bit. I now have a revolving credit with them and I always make sure to make purchases that I can pay right off. I never use my whole credit limit though as I was told you shouldn’t. And I never purchase anything i cant pay off within 30 days

  • Debbie Abeyta

    Finger hut has been around for years, my grandma had a card she loved it.

  • Heather Carroll

    I went up 53 points just opening a Fingerhut Freshstart account. Keep in mind however, my credit was in very terrible standing with no current open accounts so opening this one account brought it up very high. So yes, freshstart does report!

  • gene davis

    Simply amazing – the $30 down pymt + $5 more with my usual car pymt, bumped my transunion score up 73 points in 1 month. Completely shocked when I checked yesterday.

  • gene davis

    410 to 473 in one month!

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