Do you have bad credit and think it's impossible to get a credit card? Think again! In this Flik Eco blog post, we'll debunk this myth and explain how you can get your hands on a merchandise credit card even with bad credit. Not only will we discuss the different options available to you, but we'll also show you how using such a credit card can actually help you rebuild your credit score. Let's dive in!
Merchandise Credit Cards For Bad Credit Table of Contents
What are Merchandise Credit Cards?
Merchandise credit cards, also known as store credit cards or catalog credit cards, are designed specifically for purchasing goods at specific retail stores or online catalogs. These cards often come with a lower credit limit and higher interest rates compared to traditional credit cards. However, the approval standards for merchandise credit cards are generally more lenient, making them an excellent option for those with bad credit.
Pros and Cons of Merchandise Credit Cards
Before diving into which cards to consider, it's essential to understand the pros and cons of having a merchandise credit card.
Pros:
- Easier approval process for those with bad credit
- Can help rebuild credit score if used responsibly
- Exclusive discounts and promotions at specific retailers
Cons:
- Higher interest rates compared to traditional credit cards
- Lower credit limits
- Restricted to specific merchants, limiting your purchasing options
Merchandise Credit Cards for Bad Credit
Now that you understand the pros and cons of merchandise credit cards, let's look at some options you can consider if you have bad credit.
Fingerhut Credit Account
The Fingerhut Credit Account is issued by WebBank and offers those with bad credit a chance to finance purchases from the Fingerhut catalog, which includes thousands of items ranging from electronics to home goods. There is no annual fee, and responsible use of the card will be reported to all three credit bureaus, helping improve your credit score.
Gettington Credit Account
Similar to Fingerhut, the Gettington Credit Account allows you to make purchases from the Gettington catalog, which offers a wide array of products. With no annual fee, this card can help you rebuild your credit history, as long as all your payments are made on time.
Horizon Gold Card
The Horizon Gold Card is an unsecured shopping card that can be used exclusively at the Horizon Outlet online store. Like the other cards on our list, this one has a relatively easy approval process for those with bad credit. Additionally, it reports to at least one major credit bureau, which can help improve your credit score over time.
Merchandise Credit Cards For Bad Credit Example:
Imagine you have a credit score of 550, which qualifies as bad credit, and you decide to apply for a Fingerhut Credit Account. Once approved, you use the card to make a $200 purchase, which you promptly pay off within the 30-day billing cycle.
By consistently making on-time payments over a few months, not only are you enjoying the benefits of using the card to make purchases at Fingerhut, but you're also demonstrating responsible credit usage. This responsible usage is reported to the credit bureaus, helping boost your credit score in the process.
We're confident that this guide has provided you with invaluable knowledge on merchandise credit cards for bad credit. While these cards might not be the best option for everyone, they do provide a viable solution for those with less-than-perfect credit. By using a merchandise credit card responsibly and consistently paying off your balance, you can slowly rebuild your credit score and eventually qualify for better financial products.
Don't forget to share this article with your friends and family who could benefit from this information. And don't stop there – explore more of Flik Eco's guides to continue your journey to financial wellness!
