Does Household Bank Really Destroy Your Credit?

Credit Cards

It’s not Chase or Capital One by any means, but Household Bank is an issuer of credit. To be precise, the company was acquired by HSBC, a more well-known name, many years ago, but Household Bank is part of this entity. HSBC is one of the top 10 largest issuers of credit. Household Bank is famous for issuing credit to those who have less-than-perfect credit scores in an effort to help them rebuild. The vast majority of their cards have a high annual fee, a high interest rate and a very low balance. However, many people do apply simply because they are more likely to have their applications accepted despite their poor credit rating. The question, though, is whether or not the company is actually destroying your credit or helping to improve it.

According to, there are hundreds of angry Household Bank credit cardholders who are unhappy with the service provided by the financial institution, and many who are convinced the bank is out to destroy their credit rather than to help fix it. Before we delve into the issue, we have to take two things into consideration; far fewer people with a wonderful experience are likely to comment, leave a review or talk about their experience online than those who are annoyed. Additionally, this is a card issuer that is in business to help those with imperfect credit, so we must assume that the vast majority of cardholders are already struggling with timely payments and may feel unfavorably when card issuers are unwilling to work with them. Of course, it’s not true of everyone but it is a consideration.

After taking the time to compare several of the more common complaints filed in regards to Household Bank credit cards, it seems that many unhappy customers are unhappy about the same things. One of the biggest complaints consumers has about this card is that fraudulent charges are common and the bank does not help consumers with these cards. Another of the most common occurrences with this card issuer is that they tend to sell off their accounts quickly to third parties, which results in negative consequences for the credit scores of those who have the cards. Many who complain about the Household Bank credit card state that they have proof their cards were paid off in full and then sent off to collection agencies with the understanding that they were not paid off at all.

Is Household Bank destroying your credit? There’s a chance it’s not helping your credit. The only way to ensure that you are not going to have any issues with the card is to keep all receipts, payment proof and balances sent to you so that you can dispute any inconsistencies with the credit bureau should it come to that. For many with cards from this issuer, there is no issue. However, it’s always better to be safe than it is to be sorry.

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