This is embarrassing but had to get the family forums feedback on this. I applied for a Fingerhut was approved for $130.00 with a down of $30.00 what do you know about this, it states that if I pay monthly 6 or 8 payments I will be considered for a revolving account. I ordered an item for $59.99 pressure cooker.
My question is this while I pay this 6 or 8 payments will this reflect on my credit report has anyone tried this route, and was it a mistake to accept it because I already did. Please give me some feedback details as I already accepted the offer.
Thank you
Monie
Starting Score: 591
@monieleazenby wrote:This is embarrassing but had to get the family forums feedback on this. I applied for a Fingerhut was approved for $130.00 with a down of $30.00 what do you know about this, it states that if I pay monthly 6 or 8 payments I will be considered for a revolving account. I ordered an item for $59.99 pressure cooker.
My question is this while I pay this 6 or 8 payments will this reflect on my credit report has anyone tried this route, and was it a mistake to accept it because I already did. Please give me some feedback details as I already accepted the offer.
Thank you
Monie
Fingerhut does report to CRAs. There are some conflicting reports about whether or not this reports to all 3 CRAs (I will find out soon since I just got their card and it has not reported just yet to any of them). But it will report as a regular department store card. So if the balance is $60 and the idea is to show some payment history, I would split that balance into 6-8 equal monthly payments and do that every month. Please make sure that the payment you schedule to make is at least the minimum required by Fingerhut.
With very little to no TLs reporting on your CR, any positive TL is good. Plus, from reading here about FingerHut, they are pretty good about automatic CLIs. I have this card and I just purchased one thing from there. I will probably use it once every 3 months or so, to show some usage until my FICO Score has gone up a little. Then I wills top using it and let them close it themselves due to non-usage.
Hope this helps, but from what I have been following on your posts (yes, like many, I too am addicted to this site), This would be a good thing for you.
Thank you I appreciate your help see I have never owned any credit cards or starter lines of credit. This would be my very first experience with it if you don't mind me asking you an additional question,
In terms of the payments it wouldn't be better to pay the whole amount I purchased? I'm so use to paying stuff in full that I have no idea how to do this correctly. The pressure cooker I bought including shipping and handling came out to $75.00 my limit is $130.00 since the site is expensive that was the lowest I could find.
With that being said what would be my monthly payments on that if I pay $30.00 as my down payment. Again I am just very new to this hopefully they will provide me with a revolving line of credit hereafter when I've been consistent with their 6 to 8 payments.
Assuming it would be roughly $12.50 monthly payments that just seems pointless on my credit report its so small, the amount. Why would it be negative if I just pay the full balance which I am so use too. Please reconfirm with me. I want to make sure I do this so that it increases my credit scores rather then have a negative impact on my credit report.
I have no idea how a credit card even works when and if they offer it to me, in terms of credit line and doing the calculation to reflect a positive increase on my credit report. Please give me a few examples thank you.
Thank you again for all of your help
Kind Regards
Monie
Hi,
The idea with credit history is not neccessarily the amount of payments. It is the history of payments. Yes, CL matters and it is especially important when used to determine utilization. But you must start somewhere. The thing of it is that IF, in fact you pay the whole thing off, the other months will show no activity. So that alone can not establish credit history.
By paying monthly payments (yes, you will pay the interest on the balance - but it is the price of establishing payment history), you are showing that you are able to make monthly installment payments. Paying it off is not a bad thing, but you don't have any other TLs reporting revolving balances and managing of payments. I have a total of 4 TLs on my CR and an additional 5th TL as an AU to a capital once card with utilization of about 12%. I had 24% utilization until now and this statement (january) will bring the UTIL down to 8.2%. I only carry a balance on ONE TL. The rest are paid in full. Again, with only one TL, you may want to carry a balance and show payment history.
I have to caution though, be very mindful of not forgetting to make payments. If you are not very organized, and you forget due dates, that could hurt you more than help you. Missing a payment and/or allowing it to go 30+ days late, will not help at all. If you forget easily, then you may be better off paying the full balance.
I am sure someone will correct me if I am wrong...
Hope that helps some.
@monieleazenby wrote:Thank you I appreciate your help see I have never owned any credit cards or starter lines of credit. This would be my very first experience with it if you don't mind me asking you an additional question,
In terms of the payments it wouldn't be better to pay the whole amount I purchased? I'm so use to paying stuff in full that I have no idea how to do this correctly. The pressure cooker I bought including shipping and handling came out to $75.00 my limit is $130.00 since the site is expensive that was the lowest I could find.
With that being said what would be my monthly payments on that if I pay $30.00 as my down payment. Again I am just very new to this hopefully they will provide me with a revolving line of credit hereafter when I've been consistent with their 6 to 8 payments.
Assuming it would be roughly $12.50 monthly payments that just seems pointless on my credit report its so small, the amount. Why would it be negative if I just pay the full balance which I am so use too. Please reconfirm with me. I want to make sure I do this so that it increases my credit scores rather then have a negative impact on my credit report.
I have no idea how a credit card even works when and if they offer it to me, in terms of credit line and doing the calculation to reflect a positive increase on my credit report. Please give me a few examples thank you.
Thank you again for all of your help
Kind Regards
Monie
Thanks guiness.
I may have jumped the gun and understood it as having the card. In that case, OP would probably be better off paying the whole thing, so you would get the card and then start building the credit that way..
@guiness56 wrote:IIRC, if you have the Fresh Start Program it initially reports as an installment account. When you have paid off your first purchase, they will start reporting as a revolving. Not sure if this is what you have. If it is, it isn't calculated the same way as revolving.
Directly from their website:
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.
@guiness56 wrote:No problem.
Also, paying it off in full you don't have to pay the horrid interest fees.
DO NOT PAY IT OFF!!!!!!! If you pay if off before 60 days I believe it is you will NOT be eligible for the revolving line of credit! Make your first 2 payments and then pay if off! Read the fine print in your agreement they sent you in the mail. I just paid mines off yesterday after 2 months and they said I will have the revolving account in 30 days! Good luck