Fingerhut bases its credit decisions on income to debt ratio, credit score and the ability to verify the identity of the person applying for credit. Although applicants may need to meet certain criteria for approval for a Fingerhut credit account, virtually anyone can apply.
Fingerhut offers two types of credit lines. One is a revolving credit line on which customers may continuously make purchases as long as there is an available balance to do so and customers continue to make on-time payments. The other is an installment loan on which customers receive a certain amount of credit to make a specific purchase. On the installment loan, once the customer pays the purchase off, the account closes.
Fingerhut decides the type of credit line extended to customers upon approval and may take into account several factors about the customer, such income, existing debt and credit score. Virtually anyone who can establish proof of identity and sufficient income to make payments on a line of credit may apply for credit with Fingerhut. Although approval is not guaranteed, Fingerhut extends credit to people with all types of credit. Customers must account for late payment fees and a nearly 25-percent interest rate when they apply.