Need to Build Credit? These Stores Can Help

Christmas shopping isn’t usually the first thing you think of when somebody says “build your credit.”

But maybe it should be.

If you don’t have much credit history, haven’t used credit in years, or you’re trying to rebuild after some financial problems, one of the hardest parts can simply be figuring out where to start.

And Christmas may give you an opportunity you’re going to have anyway.

You’re probably buying gifts.

You may already know you’re going to need to spread some of those purchases out instead of paying cash for everything at once.

So if you’re going to use credit for Christmas shopping, why not look for places where your on-time payments can also help you begin establishing a positive credit history?

There are still stores that extend their own credit, including some that are willing to consider shoppers who don’t have perfect credit or much credit history at all. Several of them also report account and payment information to the credit bureaus.

That means the Christmas gifts you’re already planning to buy could potentially do double duty:

You get the shopping done, and your responsible payments can start creating the kind of history lenders want to see later.

Of course, you still want to buy what you can reasonably repay. Building credit only works in your favor when those payments are made on time.

But if Christmas is already going to stretch the budget a little, I’d much rather see those payments working toward something useful than disappearing without helping your credit at all.

Let’s look at some of the places where that may be possible.

Credit terms, approval policies and reporting practices change. Information below reflects U.S. policies available in September 2026. Always verify the current account agreement before applying.

Shopping Doesn’t Automatically Build Credit

This distinction matters.

Paying cash at Walmart every week doesn’t build credit.

Using your debit card doesn’t build credit.

Buying something with a BNPL (Buy Now, Pay Later) app doesn’t automatically build credit either.

For shopping to actually show up on your credit report, there needs to be an account that’s being reported to one or more credit reporting companies.

The three biggest U.S. credit bureaus are:

Equifax
Experian
TransUnion

Lenders report information about accounts to these companies, and credit-scoring models use information from your credit reports when calculating scores.

One of the Biggest Factors Is Really Boring

Pay your bill on time.

That’s it.

Not glamorous.

Not a trick.

The CFPB (Consumer Financial Protection Bureau) says paying your bills on time, every time, has the greatest impact on your credit score.

It also recommends keeping balances low relative to your credit limits.

So when we’re looking at “shop and build credit” programs, don’t focus only on getting approved.

The important part comes after you get approved.

The Fingerhut-Style Option: Direct Store Credit

This is the category people often mean when they’re looking for a Fingerhut alternative.

Years ago, many people used Fingerhut to build credit – it was one of the perks they advertised the most. But, in recent years they have closed.

Instead of a bank issuing you a Visa or Mastercard, the retailer itself gives you revolving credit that can be used at its store.

You order the product now.

The company ships it.

You receive a bill.

You make monthly payments.

As you repay what you’ve borrowed, available credit becomes available again.

If You’re Going to Use Credit for Christmas, Make It Count

Here’s really what I’m getting at.

Let’s say you’ve got $500 worth of Christmas shopping left to do.

You don’t have $500 sitting in the Christmas fund, so you already know some of those purchases are probably going to be paid over time.

You have choices.

You could put them on something that gives you no credit-building benefit at all.

Or, if it makes sense for your situation, you could shop somewhere that reports your account and on-time payments to the credit bureaus.

The amount you’re spending hasn’t magically changed.

You’re simply being more intentional about where you spend it and how you pay it back.

That can be particularly useful if you’re starting from:

• No credit history
• Very little credit history
• An old credit file with almost nothing currently reporting
• Credit problems you’re actively trying to rebuild from

Nobody starts with excellent credit.

At some point, you have to create a history showing that you can open an account, use it responsibly and make the payments you agreed to make.

A store account can be one way to begin doing that.

And Christmas can actually be a convenient time to start because you’re buying things anyway.

The goal isn’t to go searching for extra things to buy just because someone approved you.

The goal is to make purchases you were already planning work a little harder for you.

Several current catalog and online retailers still operate this way:

Ginny’s

Ginny’s sells kitchen items, electronics, home goods, furniture, bedding and other general merchandise.

Ginny’s says its credit isn’t issued through a traditional national bank.

It also says it reports its open, active accounts, including the full payment history, and that on-time payments can help build a positive credit history.

You can apply when checking out.

An application can result in approval, denial or a request for a down payment.

That makes Ginny’s particularly interesting for someone who has limited credit history or is rebuilding, although approval is never guaranteed.

Cost

Ginny’s current published credit terms show:

APR: 5.75%–25.99%, depending on state
Annual fee: None
Late fee: Varies by state
Returned-payment fee: Varies by state

If you pay the entire balance by the due date each cycle, its agreement provides a grace period so you can avoid purchase interest.

Montgomery Ward

Montgomery Ward operates a very similar revolving-credit program.

Today’s Wards isn’t simply the old department store many people remember.

It’s an online/catalog retailer selling general merchandise, and it extends credit directly rather than through a traditional bank.

Wards says it reports active accounts including the complete historical payment information.

It also offers a prequalification tool that says checking whether you prequalify won’t affect your credit score.

The current published credit terms also range from 5.75% to 25.99% APR depending on state, with no annual fee.

Seventh Avenue

Seventh Avenue sells furniture, home décor, electronics, kitchen goods, clothing, toys and other merchandise.

It reports active accounts and complete payment histories, and the company specifically says on-time payments can help strengthen a credit report.

Its published credit terms also vary by state, with purchase APRs as high as 25.99%.

Country Door

Country Door is more specialized toward furniture, bedding, decorating, kitchen and seasonal products.

Its direct store credit also reports active account and payment-history information.

Current terms again show state-dependent rates that can reach 25.99%.

Swiss Colony

The Swiss Colony is interesting because the merchandise is completely different.

This one is primarily food gifts, chocolates, cheese, meats and other gift baskets.

But it still operates an in-house revolving credit program.

Swiss Colony says it reports open active accounts and complete payment histories, and it directly discusses using responsible on-time payments to establish positive credit history.

If what you actually need to buy is a birthday, thank-you or holiday food gift, this gives you a very different way to use the same basic type of credit account.

Midnight Velvet

Midnight Velvet focuses more on women’s fashion, shoes, jewelry, gifts and décor.

Its current credit information says the company reports to major credit bureaus and that good payment behavior may help a customer improve credit history.

But These Stores Are Related

Here’s something worth knowing before you race off and apply for all of them.

Ginny’s, Wards, Seventh Avenue, Country Door, Swiss Colony and Midnight Velvet are part of the Colony Brands family of companies.

The different stores have different merchandise, so I’m listing them because one may fit your shopping needs much better than another.

But I would not treat this as:

“Great! Six accounts! I’ll open every one!”

That’s not the lesson.

Choose the store that makes sense for what you actually buy.

Perpay: A Completely Different Model

Perpay isn’t really an old-fashioned catalog account.

It’s a shopping Marketplace combined with payments through your paycheck.

Perpay currently sells items including electronics, apparel and home goods.

You shop the Marketplace and repay through recurring payroll direct deposit.

Perpay currently advertises no interest or fees on the Marketplace installment payments themselves.

Where the Credit Building Comes In

Perpay’s credit-building feature is Perpay+.

That currently costs $5 per month.

Perpay says that once it’s properly set up, the program reports your spending limit and qualifying on-time Marketplace payment activity to:

Experian

Equifax

TransUnion

Perpay says reporting generally begins within 30–60 days.

That’s unusual.

Most shopping programs aren’t quite this explicit about reporting to all three major bureaus.

The Trade-Off

You have to be comfortable with payroll direct deposit.

And you’re paying $5 every month for Perpay+.

That’s $60 a year.

So I’d ask whether the credit-building benefit is worth $60 to you.

For someone with a thin credit file who’s going to use the Marketplace anyway, it just might be.

For someone who already has a mortgage, three credit cards and 20 years of positive payment history?

I wouldn’t automatically add another $60 annual expense just because it has “credit building” attached to it.

NFM: Traditional Retail Credit That Reports

NFM is in another category.

This is much closer to traditional retail financing.

NFM sells furniture, electronics, appliances, mattresses and other home products and offers its own NFM credit account.

The company’s credit privacy notice says it reports information about credit transactions, balances and payment history to consumer credit reporting agencies.

That means responsible account use can become part of your credit file.

NFM Can Be Useful for Larger Purchases

This isn’t where I’d necessarily open an account to buy a $15 kitchen gadget.

NFM becomes much more interesting when the thing you genuinely need is something like:

A sofa
A mattress
A television
A refrigerator
A washer and dryer
A computer
Furniture for a new home

Those purchases are large enough that financing may actually matter.

Be Extremely Careful With Deferred Interest

NFM currently offers several promotional financing options.

Some say things like:

No interest if paid in full in 12 months.

That isn’t the same thing as:

0% APR for 12 months.

Current NFM terms say interest on many of these promotions accrues from the date of delivery at 18% APR.

The interest is waived if you satisfy the promotional terms and pay the qualifying balance in full during the specified period.

Fail to do that, and the accrued interest may become due.

The word IF matters.

A lot.

Regular Store Credit Cards Can Build Credit Too

There is another big category beyond these specialty accounts.

Regular retail store cards.

The CFPB explains that store cards normally appear as lines of credit on a consumer’s credit report and that consistent on-time payments can be one way to build or improve credit.

So technically, many traditional retail cards can accomplish the same basic goal.

The difference is that they’re usually bank-issued credit cards associated with a retailer rather than the retailer itself extending catalog-style credit.

And there’s a downside.

Store Credit Can Be Expensive

The CFPB has specifically raised concerns about the high cost of retail credit cards.

Retail cards can carry higher APRs than general-purpose credit cards, and deferred-interest promotions can become especially costly if the promotional balance isn’t paid in full by the deadline.

That’s why I would never say:

“Open a store card because it builds credit.”

I’d say:

“Open an account if you need it, understand the cost and can manage it responsibly.”

Very different advice.

What About Klarna, Affirm, Sezzle and Afterpay?

Those belong in the Buy Now, Pay Later category.

They aren’t automatically interchangeable with these store-credit accounts.

Credit checks and credit reporting vary tremendously by provider and even by the particular BNPL product you choose.

Some products report.

Some don’t.

Some providers offer optional credit-building features.

Some longer installment loans behave more like traditional credit.

That’s why I wouldn’t choose a BNPL service solely because you’re trying to add a traditional revolving retail account to your credit report.

They’re different tools.

Which Shopping Account Is Best for Building Credit?

I’d start with the thing you actually need to buy.

If you need general household or kitchen merchandise, I’d look at Ginny’s or Montgomery Ward.

If you’re interested in home décor and furniture, Seventh Avenue or Country Door may make more sense.

If you’re buying food gifts, Swiss Colony gives you a completely different option.

For fashion and jewelry, Midnight Velvet is worth a look.

If you want a broader Marketplace and you’re comfortable with payroll direct deposit plus the $5 monthly reporting program, Perpay+ is one of the clearest programs about reporting to all three bureaus.

And if you’re making a larger furniture, electronics or appliance purchase, NFM belongs in the conversation.

Christmas Shopping Can Be a Starting Point

If you’ve been wondering how you’re ever supposed to build credit when nobody wants to give you credit in the first place, some of these accounts may give you a place to start.

That’s especially true if you’re already going to be buying Christmas gifts and paying for some of them over time.

You don’t need to open every account on this list.

You don’t need to spend thousands of dollars.

And you definitely don’t need to carry a balance forever.

You just need an opportunity to show:

I borrowed responsibly. I made my payments. I did what I agreed to do.

My older brother told me when he was in his twenties (many, many moons ago) – he went to the bank and borrowed $100. He came home and put it in his top drawer and every time a payment was due, he went to his drawer, pulled out the money, paid the payment, until it was paid back. He went back and asked to borrow a larger amount and did it again. He did that for quite a while to build up his credit.

Month after month, that’s how a credit history starts taking shape.

So if Christmas shopping is already in the budget – or even stretching it a little – look at the stores you’re considering before you buy.

See who actually reports your payments.

Look at the interest rate.

Look at the monthly payment.

Then choose the account that gives you the best chance of buying what you already need and coming out of the purchase with something more than a paid-off Christmas gift.

You may come out with the beginning of a stronger credit history too.