- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- See Issuer Website
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
N/A This card doesn’t offer cash back, miles, or points
Building your credit isn’t always easy. If you don’t have much of a credit history or you have a few bad marks, some lenders might not be willing to work with you. That’s why credit-builder cards and secured credit cards exist. But there are other options too, like the credit account from Fingerhut.
The Fingerhut Credit Account isn’t a typical credit card, but rather an account you can only use with specific retailers. It also comes with some big setbacks, like high fees and interest rates. But its primary use is to help improve your credit score if you have no other option.
Perks
Your activity with the Fingerhut credit account gets reported to the three major credit bureaus, Equifax, Experian and TransUnion. That means when you show responsible credit usage, your credit score gets a boost. Once your credit improves, you can qualify for better products -- like rewards credit cards and travel credit cards -- without as many restrictions and limitations as the Fingerhut credit account.
There’s no annual fee, but there is a $30 account opening fee. There’s no over-limit fee, so if you accidentally go over your account spending limit, you won’t get hit with an additional fee. You have a 24-day grace period to make your payment.
There are no rewards, cash back, points or bonus offers.
Fees and limitations
One of the biggest drawbacks to the Fingerhut credit account is that it can’t be used everywhere. You can only shop with verified Fingerhut partners through the company’s website. Featured brands include Samsung, Dyson and Fisher-Price, among others.
Another limitation is that there’s no way to earn rewards, which is usually what entices users to a specific card or account. In this case, the attraction is the possibility of improving your credit score.
The Fingerhut Credit Account charges high fees and interest rates compared to many credit cards:
- APR: 29.99%
- Late fee: up to $41
- Returned payment fee: up to $41
There’s also a $30 down payment to use the account.
With the high annual percentage rate and strict limitations on how to use it, you may not find many benefits to the Fingerhut credit account. A secured credit card is likely a better option.
Alternative cards
Since this is a credit account, you may want to explore other options, including credit cards that are widely accepted elsewhere.
Discover it® Secured Credit Card
The Discover it Secured Credit Card* is one of the best secured cards to choose because you can earn decent rewards while working to establish or repair your credit score. You’ll need to pay a one-time, refundable security deposit which forms your starting credit line upon approval. The minimum security deposit required is $200 while the maximum is $2,500.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card* requires a minimum deposit of $49 to get a $200 credit line. But if you have the extra cash, you can increase your credit limit by depositing more. After showing responsible use, you may be able to convert your account to an unsecured card.
How Fingerhut Credit Account issued by WebBank compares to other cards
- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- See Issuer Website
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
N/A This card doesn’t offer cash back, miles, or points
- Intro Offer
-
Cashback Match™ Intro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Annual fee
- $0
- APR
- 28.24% Variable APR
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
1% – 2% Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.; Earn unlimited 1% cash back on all other purchases – automatically.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- Intro Offer
-
No current offer
- Annual fee
- $0
- APR
- 18.24% – 32.24% (Variable)
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- No Credit History
- Rewards rate
-
1% – 1.5% Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.; 1% cash back on eligible purchases right away.
FAQs
A credit builder card is a credit card that’s specifically designed to build your credit (or help repair it). It usually doesn’t come with rewards -- although some do -- and the best ones report to the three major credit bureaus.
If you have a FICO score that’s 579 or lower, you’ll be considered to have bad credit. For VantageScore it’s 499 and below. You can check your credit score for free.
If you have the funds for an upfront security deposit, start off with a secured credit card that reports to the three major credit bureaus. On-time payments and low credit utilization are the key to building up your score.
*All information about the Discover it Secured Credit Card and the Capital One Platinum Secured Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
