The Truth About the Horizon Freedom Gold Card’s Legitimacy
When you’re trying to build or repair your credit, offers that sound too good to be true often are. The Horizon Freedom Gold Card is a prime example, frequently causing confusion for consumers. Let’s break down the facts and expose the controversy surrounding this product.
What is the Horizon Freedom Gold Card, Really?
First and foremost, it’s crucial to understand this: is the Freedom Gold Card a real credit card? The answer is no, not in the way you think of a Visa, Mastercard, or American Express. The Horizon Freedom Gold Card is a closed-loop store card. This means it can only be used to make purchases from a single, specific online store: the Horizon Outlet.
Many users fall into the trap, believing they’ve been approved for a genuine credit card they can use for everyday purchases. This confusion is central to the Horizon Gold Card scam narrative. It does not function like a traditional credit card, cannot be used for cash advances, and does not help you build credit with the major credit bureaus. It is simply a line of credit for a members-only online shopping portal run by its issuer, Horizon Card Services.
Why the Horizon Freedom Gold Card is So Controversial
The controversy isn’t just about its limited use; it’s rooted in serious legal issues. The primary reason why the Freedom Gold Card is controversial is the Horizon Card Services lawsuit filed by the Consumer Financial Protection Bureau (CFPB).
The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Reliant Holdings, Inc., which does business as Horizon Card Services, and CEO Robert Kane on September 13, 2024, alleging deceptive and illegal practices. The lawsuit was later voluntarily dismissed with prejudice by the CFPB on April 23, 2025. The lawsuit claimed the company charged illegal upfront fees and misled consumers about the nature of the card, making it a classic example of a predatory credit card scheme. They targeted vulnerable consumers with poor credit, promising a high-limit credit card but delivering a product with minimal value and high, often hidden, costs. This legal action confirms that the concerns about whether the Horizon Freedom Gold Card is legitimate are well-founded.
How It Differs from a Real Credit Card
It’s easy to see an offer for a card with a high credit limit and assume it’s a standard credit card, but the differences are critical. The Horizon Freedom Gold Card is essentially a fake credit card when compared to a real one from a major payment network (like Visa or Mastercard). Here’s a clear distinction:
| Feature | Real Credit Card (Visa/Mastercard) | Horizon Freedom Gold Card |
|---|---|---|
| Acceptance | Accepted at millions of merchants worldwide. | Only accepted at the Horizon Outlet online store. |
| Credit Reporting | Reports to all major credit bureaus, helping to build a positive credit history. | Reporting is not guaranteed and its structure is poor for building credit. |
| Purpose | Provides flexible payment options for a wide range of purchases and services. | Locks users into making purchases from a single, often overpriced, online store. |
A Closer Look at the Card’s Severe Limitations
Understanding the company behind the card and its specific rules reveals just how restrictive this product is. The limitations go far beyond where you can shop, extending to high fees and a confusing customer service experience.
Who is Horizon Card Services?
So, what is Horizon Card Services? It’s the company that issues and manages the Horizon Card and operates the Horizon Outlet store. They are not a bank. Customers often search for a Horizon bank customer service or Horizon bank phone number, but this is misleading, as the company is a standalone entity focused solely on this retail credit model. Their business practice, as highlighted by the CFPB lawsuit, has been to profit from monthly fees and overpriced goods sold through their exclusive online portal.
Where Can You Actually Use the Freedom Gold Card?
This is the most significant limitation. Can you use the Freedom Gold Card anywhere? Absolutely not. As a closed-loop store card, its use is restricted to a single place: the Horizon Outlet store online. You cannot use it for gas, groceries, emergencies, or any other purchase outside of this specific website. The Horizon outlet store online features a limited selection of merchandise, often at prices higher than what you would find at other retailers, which is how the company profits from the arrangement.
The Hidden Costs: Fees and Misleading Limits
The marketing for the Horizon $750 credit card is highly deceptive. While you might be “approved” for a $750 credit limit, you cannot actually use that amount. The real trap lies in the Horizon Freedom Gold Card fees. Customers are typically required to pay a significant monthly fee just to keep the account open, regardless of whether they make a purchase.
Furthermore, cancelling the card can be difficult. Many users have reported issues with the Horizon Freedom Gold Card cancellation process, continuing to be charged fees long after they’ve tried to close their account. These fees are pure profit for the company and provide no value to the consumer.
What You Need to Know About the Horizon Outlet Card
The Horizon Outlet credit card is the same product as the Freedom Gold Card. If you apply for the Horizon Outlet card or Horizon Outlet apply online, you are signing up for this restrictive credit line. There is no Horizon Outlet cash advance feature, and the sole purpose is to enable purchases on their website. The application process is often marketed as having guaranteed approval, which preys on individuals who have been turned down for legitimate credit products.
Smarter, Safer Ways to Build Your Credit
The good news is that if you have bad credit or no credit, there are many legitimate and effective ways to improve your financial standing. Instead of falling for predatory offers, you can take control with proven tools and strategies.
Start with Legitimate Credit-Builder Cards
The best alternative is a product designed specifically to help you. Legitimate credit-builder cards report to all three credit bureaus, allowing you to build a positive payment history.
* Secured Credit Cards: These are excellent for those with bad credit. You provide a small security deposit (e.g., $200), which typically becomes your credit limit. After a period of responsible use, you can often graduate to an unsecured card and get your deposit back.
* Credit-Builder Apps & Cards: Companies like Chime and Self have created innovative products. The Chime Credit Builder card is a secured card that doesn’t require a minimum deposit and helps you build credit with everyday purchases. The Self credit builder combines a loan and a secured card.
Before you consider any card, it’s crucial to read a detailed breakdown. For an in-depth analysis of this specific product, see our complete Freedom Gold Card review. These tools are part of a healthy credit builder program and are far superior to any closed-loop store card.
Explore Credit-Builder Loans and Savings Accounts
Another powerful tool is a credit builder loan. With this type of loan, you don’t receive the money upfront. Instead, you make small monthly payments that are reported to the credit bureaus. Once you’ve paid the loan in full, the funds are released to you. It’s like a forced savings program that builds your credit at the same time. Many banks and credit unions offer these, and some providers even offer credit builder loan guaranteed approval options. A credit builder savings account works similarly, helping you save money while establishing a positive credit history.
Take Control: How to Build and Monitor Your Credit
Knowing how to build credit is the first step toward financial freedom. Here are some fundamental actions you can take:
* Get Your Free Credit Report: By law, you are entitled to a free credit report from each of the three major bureaus (Equifax, Experian, TransUnion) once a year through AnnualCreditReport.com. Review your Equifax credit report and others for errors.
* Monitor Your Score: Use credit monitoring services to track your progress and get alerts about changes to your report. Many banks and credit card companies offer a free credit score check.
* Consider a Credit Freeze: If you’re concerned about identity theft, you can implement a credit freeze. An Equifax credit freeze or TransUnion credit freeze restricts access to your credit report, making it harder for identity thieves to open new accounts in your name.
* Practice Good Habits: Always pay your bills on time, keep your credit card balances low, and only apply for new credit when you truly need it. This is the most reliable way to achieve a good credit score.
Frequently Asked Questions
Is the Freedom Gold Card a real credit card?
No, the Freedom Gold Card is not a real credit card in the traditional sense. It is a closed-loop store card, which means it can only be used to make purchases at a single online store, the Horizon Outlet. It is not part of the Visa or Mastercard network and cannot be used for everyday purchases.
What is the Horizon Card Services lawsuit about?
The Horizon Card Services lawsuit was filed by the Consumer Financial Protection Bureau (CFPB). The lawsuit alleges that the company engaged in deceptive marketing practices, charged illegal upfront fees, and misled consumers into believing they were receiving a real credit card when it was only a limited store card.
Can you use the Horizon Freedom Gold Card anywhere?
No. The Horizon Freedom Gold Card can only be used for purchases at the Horizon Outlet online store. It is not accepted anywhere else—you cannot use it for gas, groceries, travel, or at any other retailer.
What are the fees for the Horizon Freedom Gold Card?
The card is known for its high-fee structure. Users are typically charged a monthly membership fee simply to keep the account open, regardless of whether they use it. These fees provide no value and were a key point in the CFPB’s lawsuit against the company for predatory practices.
