Looking for the best ways to rebuild your credit after bankruptcy?
Although it seems like you’ll never recover from serious credit setbacks, there are actually ways to begin the process of rebuilding your credit score after bankruptcy. One of the best and least expensive ways is to open an account with a store/catalog sales site like Fingerhut.
Will opening a Fingerhut credit account help your credit score after bankruptcy?
Unlike a lot of other store/catalog shopping sites, Fingerhut actually has a program called the FreshStart program that was created especially for those who have less than perfect credit, so even if you don’t qualify for a regular revolving credit account with Fingerhut, you may still qualify for the FreshStart program (most people do qualify).
What is the Fingerhut FreshStart program?
Fingerhut’s FreshStart program is actually set up so that, once you are approved, you place the initial order (usually up to $300 worth of merchandise). Then, you’ll remit what is essentially your first payment on the new account, and Fingerhut will ship your order. You’ll continue to make the payments, and eventually, if your payments are timely and regular, your account may be considered for conversion to a revolving charge account. (Over time you will likely see your available credit increase and they offer specials where you pay no interest for a certain amount of time, where you can buy larger items like furniture, and much more!)
The Fingerhut FreshStart program can help you to rebuild your credit in two ways:
- Your timely, regular payments will be reported to the credit bureau, which will definitely help you to start to rebuild your payment history.
- Your available credit will be reported as well, and in the event that your credit limit is increased, that will also be reflected positively on your credit report. Just make sure that you keep your “available credit” around 75% of your total credit limit, because that is a very important factor in calculating your credit score.
And last but not least, there is another reason to consider Fingerhut – you will gain buying power!
Let’s be honest, when you have no credit, it’s really hard to buy anything (Christmas, birthdays, or just something you need around the house). Fortunately, Fingerhut offers a huge selection of fine quality, brand name merchandise at highly competitive prices, and the prices are even listed two ways on their website: The full price is shown AND they show you the monthly payment amount, so you know how much you’ll need to pay each month before you make the purchase. (This helps tremendously if your budget is tight.)
Think Fingerhut might be the right choice for you?
(Trust me, this isn’t your mother’s Fingerhut anymore!)