Since you may qualify for either the Fingerhut Advantage Credit Account or the Fingerhut FreshStart Credit Account when you apply using the issuer’s single application form, here are breakdowns for either result.
Fingerhut Advantage Credit Account rates and fees
Although there are no annual or overlimit fees with the Fingerhut Advantage credit account, the real kicker is the sky-high 29.99 percent interest rate, equivalent to the penalty APR many cards charge. This is high even for a private-label retail card and won’t go down if your credit improves since it’s a non-variable (fixed) rate.
There are also a few other fees to be aware of. The late fee is up to $40. The returned payment fee may also cost you up to $40.
You might also notice an undefined “processing fee” for payments made over the phone or with the help of a representative, or if you want your payment to be posted on the same day. Strangely, you won’t know the cost of the processing fee until you try to make the payment. You do have a 24-day grace period after your account statement is posted to make your payment without being charged interest, but keep in mind that there’s a 2-day processing period for debit card payments and a 7-day period for other forms of payment, including electronic or paper checks.
It’s worth noting that depending on your balance, your minimum monthly payments can range from 100 percent of a balance below $9.99 to up to 5 percent on a balance of $1,400+. This is also on the high side, considering issuers generally determine your minimum payment as 2 to 4 percent of your total balance.
Fingerhut FreshStart Credit Account rates and fees
Instead of a credit card like the Advantage, the FreshStart account is an installment loan available for purchases of $50 or more. The “representative” terms are available, but keep in mind that you won’t know the final terms until your agreement is sent to you.
Each loan requires a $30 down payment and can extend to either six or eight months. There is also another undefined fee, a finance charge, which will be visible along with your minimum monthly payment at the time of purchase. For reference, the finance charge is $1.79 for a $50 purchase and $6.25 for a $100 purchase. There is also a $25 returned payment fee and a late payment fee of $4.90 for balances between $15 and $50. This fee increases to $14.90 for higher balances.
Since FreshStart is an installment loan, you won’t be able to avoid the painful 29.99 percent APR. Fingerhut allows you to pay off your loan early without consequence, so you could dodge interest by paying back the loan before your first interest charge is up. However, that defeats the purpose of an installment loan.
If you only qualified for the FreshStart loan, your best move might be to request an upgrade to the Advantage card or qualify by paying off your initial purchase within six installments or sooner with no late payments.