Editorial note: This is a recurring post, regularly updated with new information and offers.
Fingerhut Credit Account overview
A Fingerhut Credit Account by WebBank is advertised as a way for online shoppers to build credit while paying off shopping purchases over time. You won’t earn any rewards on your purchases; you can only use the account with Fingerhut and the interest rates are less than favorable. All in all, there are much better options out there, even for beginners. Card Rating*: ⭐
* Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
I don’t know about you, but I’ve been doing a lot more online shopping in the last few years. Between new books, closet storage and organization solutions, home decor and clothes, I’ve racked up quite a few points (and cardboard boxes).
During one of my recent online searches, I came across an online shopping catalog called Fingerhut. It’s a shopping magazine website that lets you open a line of credit to use specifically on catalog purchases so you can pay off your shopping habits over time.
Since this is a beginner credit account, you don't need a high credit score to be approved. In fact, you may have a chance of getting approved with no credit history.
Unsurprisingly, though, this line of credit isn’t a great option — especially if you’re hoping to earn rewards on your purchases. Let’s dive into the details and discuss other credit options that could be a better fit for anyone who may be considering a Fingerhut account.
The information for the Fingerhut Credit Account by WebBank has been collected independently by The Points Guy. The details on this page have not been reviewed or provided by the card issuer.
Fingerhut Credit Account pros and cons
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Fingerhut Credit Account welcome offer
The Fingerhut credit account comes with no traditional welcome offer.
Needless to say, that's disappointing — especially considering there are cards out there offering bonuses worth more than $1,000 in value.
Related: The best welcome offers currently available
Fingerhut Credit Account benefits
The Fingerhut credit account also comes with a meager list of benefits.
The main selling point of the Fingerhut credit account is that it lets you pay over time when you shop online with the retailer. But there are plenty of other ways to finance larger purchases on a budget, and the fact that this option can only be used at Fingerhut retailers is a major downside.
Your credit history will also be reported to all three credit bureaus, which is nice if you're trying to build (or rebuild) your credit score. But even if that's the case, you can find plenty of better cards out there that offer solid benefits and rewards along the way.
Related: The best rewards credit cards
Earning rewards with the Fingerhut Credit Account
Here comes maybe the worst part of this credit account: It doesn't offer the chance to earn or redeem any sort of rewards.
Again, even if you've got a limited or poor credit history, there are a number of secured credit cards out there that can earn you rewards as you look to raise your credit score.
Pair that with the fact that a Fingerhut credit account is a closed-loop credit option — meaning it can only be used at Fingerhut locations — and it's enough to make most prospective customers stay away.
Related: What is a secured credit card?
Which cards compete with the Fingerhut Credit Account?
If you're looking to build your credit, you have several better options than a Fingerhut credit account.
- If you want to earn rewards while building credit: The Capital One Quicksilver Secured Cash Rewards Credit Card earns unlimited 1.5% cash back on all purchases. You'll need a minimum $200 security deposit to qualify. To learn more, read our full review of the Capital One Quicksilver Secured.
- If you want to earn bonus rewards while building credit: The Discover it® Secured Credit Card earns 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and unlimited 1% cash back on all other purchases. Discover will match all of the cash back you earn at the end of your first year, meaning during that time, you're effectively earning 4% back on gas stations and restaurants. To learn more, read our full review of the Discover it Secured credit card.
- If you already have a good credit score: The (see rates and fees) earns unlimited 2% cash back on all purchases (1% when you buy, 1% as you pay). Its simplicity makes it one of our favorite starter rewards cards. To learn more, read our full review of the Citi Double Cash.
The information for the Discover it Secured Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
For additional options, check out our lists of the best-secured credit cards and the best starter credit cards.
Related: Why the Citi Double Cash will always have a place in my wallet
Is a Fingerhut Credit Account worth it?
It can be tempting to take advantage of offers that let you pay over time when you’re online shopping, but doing so is almost never a good idea. While there are ways you can finance larger purchases with the right budget and a good 0% APR credit card offer, Fingerhut’s credit account through WebBank just doesn’t fit the bill.
Related: The best first credit cards
Bottom line
With so many actual credit card options out there (many of which earn great rewards that can help you save money or you can redeem for amazing travel experiences) and other online shopping sites offering better prices on the products Fingerhut sells, it just doesn’t make sense to consider the Fingerhut credit account.
You're better off looking elsewhere for a beginner credit card.