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

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Frequent Contributor

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


@DaveInAZ wrote:

Does Fingerhut sell packs of gum?


Smiley Very Happy, 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.




Instead of waiting for the storm to pass, I've learned to dance in the rain.
Message 11 of 16
Frequent Contributor

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


@Credit_Mama 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.


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."




Instead of waiting for the storm to pass, I've learned to dance in the rain.
Message 12 of 16
Valued Contributor

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


@Credit_Mama 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.


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. 


FICO 8 Starting Score

Current Scores






Message 13 of 16
Frequent Contributor

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

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.

Current Score: Mar 2019: EX FICO8 779, TU FICO8 800, EQ FICO 780, TU Vantage 773, EQ Vantage 786
AoOA: closed: 35 years, open: 24 years; AAoA: 11.8 years; Inquiries: 2019: 2, 2018: 3; No BK ever, 1 30 day late in 2013
Amex Gold, Amex Green, Amex Blue, Amex ED, Amex Delta Gold, BoA Platinum Plus, Chase Slate, Chase Amazon, Chase CSP, Sync Lowes, Sync JC Penney - total CL 114k
Loans: Marcus (10k/3yrs 5.99%), Prosper (20k/3yrs 7.14%), Lending Club (10k/3yrs 5.89%), Chase car loan (35k/6yrs 0.9%)
Message 14 of 16
Super Contributor

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


@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.


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

Message 15 of 16
New Visitor

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

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

Message 16 of 16