"Make a purchase to keep this credit line" is this legal??

[outofcredit]

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@DaveInAZ wrote:

Does Fingerhut sell packs of gum?

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, I wish!!  I would have so many $50 permanent increases!  Cheapest thing I have found that is useful is socks.  I only get those when shipping is FREE and they're offering one of their "temporary credit increases."  I have a ton of socks to keep my Fingerhut card company.

[outofcredit]

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@Anonymous wrote:

Thanks for sharing! Seems more like an unethical practice but probably legal. I just got a Fingerhut account to start rebuilding. I'll have to keep an eye out if this happens to me. I'm under the impression I need to use 1/3 of the credit balance (spend $100 out of $300 limit) to have a postiive impact on utilization and to establish a good payment history. I cringed at the things I had to purchase on the card. Everything on Fingerhut is so overpriced...I'm just playing the game until I can improve my score.

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If the scores in your signature are FICO and current, IMHO you are way past needing Fingerhut.  You don't have to buy a lot from them to get permanent cli's.  They routinely increased my limits every few months anytime my balance was paid in full. YMMV.  Even it was only a $15 balance.  I would suggest waiting for their "free shipping" days ( usually around holidays) to buy anything from them if you feel the need to "use the available credit."

[MakingProgress]

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@Anonymous wrote:

Thanks for sharing! Seems more like an unethical practice but probably legal. I just got a Fingerhut account to start rebuilding. I'll have to keep an eye out if this happens to me. I'm under the impression I need to use 1/3 of the credit balance (spend $100 out of $300 limit) to have a postiive impact on utilization and to establish a good payment history. I cringed at the things I had to purchase on the card. Everything on Fingerhut is so overpriced...I'm just playing the game until I can improve my score.

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I don't see anything unethical about it.   It is a marketing ploy just like 0% for 12 months with a minimum purchase.   Both are designed to have you buy something, and since FH is in the business of selling things it makes perfect sense to me. 

[FlaDude]

I know nothing about Fingerhut, but setting CLs based on usage and even closing accounts that are not used for a while is not uncommon. My wife had a high balance on a Citi Sears card for years. I got a low interest loan and paid it off about a 1 1/2 years ago. We hadn't used it since. She recently got a notice that if she didn't use it in the next couple of months they were going to slash her CL. I've had other cards closed over the years for non-use.

Honestly, it surprises me that the CC companies repeatedly give CL increases to people who don't use near their CL in the first place.

[Anonymous]

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@FlaDude wrote:

Honestly, it surprises me that the CC companies repeatedly give CL increases to people who don't use near their CL in the first place.

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Agreed 100%.  Take on greater risk for zero additional reward.  Doesn't seem like a solid business move IMO.

[Anonymous]

Its mostly depend on your payment history dear, If your payments are on time that you can easily purchase through your credit line. 

[Anonymous]

The samething just happened to my husband and myself. We both have accounts with fingerhut. We started with their fresh start program then graduated to regular account he got $400 i got $500. They sent him a letter stating to keep your temporary limit you need to spend $400 of your new $800 limit. I told him to call them to make sure it wasn't going to be reported to credit bureaus and they said no! Well guess what they reported it. We spent 9 months working to have 725 fico scores from 500. We bought a brand new car also got discover cards with $2,000 limits. Capital one cards just upgraded to quicksilver $500 limits. So now are we gonna take a hit to fico scores? If we don't use it?

[Anonymous]

They are doing the samething to us! We got them to increase our credit score *my husband and i both have accounts, we needed to buy a car" we had no credit and applied got the fresh start program both went from 500 to 600's we got our brand new car with great interest rate. We completed the fresh start and both got regular fingerhut accounts. Ok great nope! We got $500 limits and each bought something, both paid them off. Mind you in 9 months went went from 500 score to 600 bought the car which then put us in 700's and then we got capital one credit cards, discover and we are both now sitting here with 725 fico scores have 2 major credit cards each and this all happened in 9 months! So recap no credit to very good credit. Then a week ago we both get letters saying "congrats we are giving you both a $400 temporary credit line increase" so cool right?? No we called them **fingerhut** because the letter states USE IT, OR LOSE IT" ok we ask this won't be reported to our credit report right? Finger says No because its temporary unless you, ready for this USE ALL OF THE CREDIT INCREASES! YES you must use the $400 dollar temporary credit line to keep it. So i told my husband just don't buy anything and instead of having the new credit line of $800 we will just stay with the $500. Well we get a alert from Experian saying congrats your fingerhut account is now $800! So if we don't buy $400 worth of merchandise we are going to both take a credit score hit when they take away the temporary limit away!! How is this legal??

[Anonymous]

If you pay in full monthly and keep your reported balance low, it doesn't matter if your limit is $400, $800, $5000 or $30,000; you won't take a credit score hit from a CLD.

[Anonymous]

Oreomypuppy Whether or not it affects your score depends on whether or not your utilization crosses a threshold or not. If you already have cap 1 and Discover, I don't think you should worry about FH. Let them sit and let them close eventually for lack of use.

No need to buy overpriced goods, and besides, those are retail cards anyway.

Credit is other people's money. It's legal for them to let you borrow it or not. CC contracts are written so that they may CLI or CLD or close anytime, at their discretion. It is what it is. They never promised you any specific limit would remain nor gave you any vested interest in it. They can both give and take away at will.

If you are not happy with it, you also share the right to close the account and end the relationship.