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The stuff club 20k guaranteed line?

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Skye12329
Valued Contributor

The stuff club 20k guaranteed line?

So I had a FB ad popup and it said the minimum credit line you get is a 20k line or credit for them. But it has terms and conditions like you pay 50% and they pay the other half when shopping on their site. It has a $99 AF. They said they report to EX and TU only currently.

According to the FB comments they say its a SP but when I read the terms it said HP. It also said guaranteed 20k line no credit check. But was wondering if anyone heard of this or has it? Like is it legit?
BK7 - 2/21
Cap1 QS - 2k (4/21)
Mission Lane - 4k (11/21)
Venmo - 900 (11/21)
SavorOne - 2500 (12/21)
VentureOne - 2000 (7/22)
Message 1 of 47
46 REPLIES 46
Anonymous
Not applicable

Re: The stuff club 20k guaranteed line?

I've never heard of them until you mentioned it. It looks legitimate and there are other companies just like it. They offer a credit line that is only good through them and then overcharge for merchandise. A lot of these types of business also usually only report to one bureau so it doesn't really help in the long run.

 

Nothing compares to a good, old fashioned secured credit card when one needs to build or rebuild credit. But some people like to look for an easy way out and get taken advantage of. 

Message 2 of 47
Skye12329
Valued Contributor

Re: The stuff club 20k guaranteed line?

Yeah I never heard of it either until it came up randomly. I never even heard of their website but was thinking it's odd just a 20k line for anyone?
BK7 - 2/21
Cap1 QS - 2k (4/21)
Mission Lane - 4k (11/21)
Venmo - 900 (11/21)
SavorOne - 2500 (12/21)
VentureOne - 2000 (7/22)
Message 3 of 47
Anonymous
Not applicable

Re: The stuff club 20k guaranteed line?


@Skye12329 wrote:
Yeah I never heard of it either until it came up randomly. I never even heard of their website but was thinking it's odd just a 20k line for anyone?

It is odd, and I could see why it could be tempting to someone that may be desperate for credit or to be able to buy merchandise without credit. Its like Fingerhut on steroids. 

 

And I think like with most banks, yes, you may be given a $20K line...but if they start to worry about the members' ability to repay, they may cut that person off at say $5K until that balance is paid down. The $20K line is like low hanging fruit...or as I like to say its like "cats at Christmas." If you have ever had a cat or know someone with a cat, they go absolutely crazy about the Christmas tree and they love all the shiny, low hanging ornaments and lights. A company like this offering $20K to someone with terrible credit because those people are like cats at Christmas and all they see is the easy to reach, shiny low hanging ornaments.

Message 4 of 47
joltdude
Senior Contributor

Re: The stuff club 20k guaranteed line?

This reminds me of that MyJewelers Club CC .. on steroids.... Fingerhut has nothing on these folks =)

 

Message 5 of 47
AverageJoesCredit
Legendary Contributor

Re: The stuff club 20k guaranteed line?

Whats that our parents or our parents parents would say???? If it looks to good to be true.......Smiley Wink
Message 6 of 47
wasCB14
Super Contributor

Re: The stuff club 20k guaranteed line?


@Skye12329 wrote:
So I had a FB ad popup and it said the minimum credit line you get is a 20k line or credit for them. But it has terms and conditions like you pay 50% and they pay the other half when shopping on their site. It has a $99 AF. They said they report to EX and TU only currently.

According to the FB comments they say its a SP but when I read the terms it said HP. It also said guaranteed 20k line no credit check. But was wondering if anyone heard of this or has it? Like is it legit?

So for the merchant, 50% of the purchase price is paid by credit/debit card (a receivable from a third party bank), and 50% is paid by the credit line they extend to the consumer? If so, that's the catch.

 

I looked at a few items and compared the prices to Amazon. The stuff club's merchandise is so overpriced that the 50% "deposit" likely covers most of their cost of goods sold (and may, for some items, even leave them some profit). Even if they collect only a small share of the balances on consumer credit lines, they can make a lot of money. They sell $100 of merchandise, roughly break even on it from $50 they get from a third-party bank (the customer's debit/credit card issuer), and then get a high-risk $50 receivable that costs them almost nothing.

 

It's like with jewelry store cards (at least before the Signet/Comenity deal). When the merchant is the one extending credit on high-margin goods, it can stomach a high default rate because it really can only lose its costs.

 

Plus they get a $99 AF up front. So they can technically extend $20k in credit...but they aren't taking anything close to $20k of risk.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 7 of 47
Anonymous
Not applicable

Re: The stuff club 20k guaranteed line?

Ok. So for giggles I applied and was approved for the 20K limit in less than a second. Let's see if they they report to EX and TU like they say. Will be a nice lowering of my util. Lol

Message 8 of 47
Anonymous
Not applicable

Re: The stuff club 20k guaranteed line?

Was it a HP when you applied and was approved?
Message 9 of 47
Anonymous
Not applicable

Re: The stuff club 20k guaranteed line?

Hello, Please let me know any updates with this company. I want to know if they really report before I join. Thank you so much!
Message 10 of 47
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