topic Fingerhut purchases in Credit Cards

Fingerhut purchases

Anonymous — Fri, 17 Aug 2018 11:03:38 GMT

I recently opened a Fingerhut credit line and was approved for $600. Some have commented that it is wise to only make a small purchase on it once in awhile, but after seeing the overpriced merchandise I don't want to use it at all. Is there any good reason to make any purchases on it at all? I only got it to rebuild credit but I don't want to use it.

Re: Fingerhut purchases

Brian_Earl_Spilner — Fri, 17 Aug 2018 13:08:44 GMT

You can't rebuild credit if youre not using it. As a rebuilder, we have to pay more for credit. If you're unwilling to pay that premium, close the account before they do.

Re: Fingerhut purchases

outofcredit — Fri, 17 Aug 2018 13:20:13 GMT

@Anonymous wrote:
I recently opened a Fingerhut credit line and was approved for $600. Some have commented that it is wise to only make a small purchase on it once in awhile, but after seeing the overpriced merchandise I don't want to use it at all. Is there any good reason to make any purchases on it at all? I only got it to rebuild credit but I don't want to use it.

@I would suggest to shop the clearance section and only order when there is "free shipping" offered, usually around holidays or Black Friday. Fingerhut is usually pretty consistent in giving out CLI's and do report to all three CRBs. Ultimately, it is your choice though and if it serves no purpose for you then close it as @Anonymous advises. I keep mine open because it is my oldest open revolver, requires minimal usage to keep open and the utilization padding is useful to me. YMMV.

Re: Fingerhut purchases

Anonymous — Fri, 17 Aug 2018 13:49:54 GMT

@Brian_Earl_Spilner wrote:
You can't rebuild credit if youre not using it. As a rebuilder, we have to pay more for credit. If you're unwilling to pay that premium, close the account before they do.

Won't it report as an account in good standing anyway, even if unused? And even if they close it, it will still add to AAoA potentially for many years. IMO, only buy if it is essential to keep it open

Re: Fingerhut purchases

rbentley — Fri, 17 Aug 2018 14:02:19 GMT

It will not affect your FICO scores if you close the account or they do. It only matters that it is in good standing when closed. Do not feel any rush to close the account. You got it to rebuild. Keep it as long as you can to add to your AAoA. Fingerhut does close inactive accounts, but we don't have any real data points to judge when that might occur. Get your benefit out of it and happily move on when your scores allow you to.

Re: Fingerhut purchases

Brian_Earl_Spilner — Fri, 17 Aug 2018 15:34:19 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
You can't rebuild credit if youre not using it. As a rebuilder, we have to pay more for credit. If you're unwilling to pay that premium, close the account before they do.
Won't it report as an account in good standing anyway, even if unused? And even if they close it, it will still add to AAoA potentially for many years. IMO, only buy if it is essential to keep it open

It will show open and in good standing, but if they're unwilling to buy anything, the account is going to be closed sooner or later. They could keep it open until fingerhut closes it, but I'd rather close them down because they spam with emails and regular mail.