On its TV ads, Fingerhut.com shows people making peace with their “budget” alter-egos by doing their shopping on the website that allows you to make “low” monthly payments. But what the site doesn’t say is that not only do those payments add up to a lot more than the original price of what you’re buying, but that Fingerhut’s sticker prices are grossly inflated over the actual retail prices.
Just take a look at the three following examples that we picked at random from the many items for sale on Fingerhut.
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7 comments:
Compare prices before you even consider buying (or renting) from retailers like this or "Rent To Own" businesses. Chances are that their prices are way out of line and you'll pay far too much for the item, even if it seems "affordable".
Be sure to check the model numbers when shopping, as, for example, one company will produce several 40" screen TVs, each with different features and price tags. The rent to own companies will often sell the cheapest of the line at the price of a higher quality model.
Wow! I knew this years ago!
and they are making money, they are evil
they are a rip off
The *only* useful thing with Fingerhut is their super easy credit granting criteria. Because they're such a ripoff, they can afford to take a hit by lending to risky consumers.
Open the account. Barely use it. Pay it off right away.
6-12 mos later (depends on how bad your credit is), and you have a positive, unsecured trade-line that should get you approved for better credit offers.
1:17 said "they are a rip off"
But only to the stupid and uninformed. A fool and his money are soon parted. Unfortunately in the world we now live in the fools money comes from my and your taxes.
First off these types of companies only want business from one group, poor people. Poor people that want to appear to have wealth. They prey on the consumerist mentality. That is there business model. And if they did not fill a void then they would go out of business. They are supplying what certain people want.
Yes they mark everything up. Can you imagine the default rate on these items? Yes they charge outrageous interest. That serves to increase the default rate. Once they retake possession of the items they simply put it back on the shelf for the next person.
They need to be able to charge enough upfront to pay for the items and make a profit over the span of several customers.
Of course its evil. And so are payday loan operations. So are car dealers that cater to poor people with the tag bring in your tax check etc. But there is a market for this type of thing. What can one say but buyer beware.
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