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                                                                      EXHIBIT 12

                 HOUSEHOLD FINANCE CORPORATION AND SUBSIDIARIES

               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

<Table>
<Caption>
                                                          YEAR ENDED DECEMBER 31,
                                           ------------------------------------------------------
                                             2002         2001       2000       1999       1998
                                           --------     --------   --------   --------   --------
                                                               (IN MILLIONS)
<S>                                        <C>          <C>        <C>        <C>        <C>
Net income...............................  $1,636.5     $1,727.9   $1,396.1   $1,205.5   $  364.7
Income taxes.............................     850.0        949.8      773.1      658.6      396.1
                                           --------     --------   --------   --------   --------
Income before income taxes...............   2,486.5      2,677.7    2,169.2    1,864.1      760.8
                                           --------     --------   --------   --------   --------
Fixed charges:
  Interest expense(1)....................   3,052.1      3,295.6    3,182.8    2,305.2    2,067.5
  Interest portion of rentals(2).........      58.0         52.2       42.9       37.7       48.1
                                           --------     --------   --------   --------   --------
Total fixed charges......................   3,110.1      3,347.8    3,225.7    2,342.9    2,115.6
                                           --------     --------   --------   --------   --------
Total earnings as defined................  $5,596.6     $6,025.5   $5,394.9   $4,207.0   $2,876.4
                                           ========     ========   ========   ========   ========
Ratio of earnings to fixed charges.......      1.80(3)      1.80       1.67       1.80       1.36(4)
                                           ========     ========   ========   ========   ========
</Table>

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(1) For financial statement purposes, these amounts are reduced for income
    earned on temporary investment of excess funds, generally resulting from
    over-subscriptions of commercial paper issuances.

(2) Represents one-third of rentals, which approximates the portion representing
    interest.

(3) The 2002 ratio has been negatively impacted by the settlement charge and
    related expenses associated with our agreement with a multi-state working
    group of attorneys general and regulatory agencies to effect a nationwide
    resolution of alleged violations of consumer protection, consumer lending
    and insurance laws and regulations in our retail branch consumer lending
    operations. Excluding the settlement charge and related expenses of $333.2
    million (after-tax), our ratio of earnings to fixed charges would have been
    1.97 percent. This non-GAAP financial ratio is provided for comparisons of
    our operating trends only.

(4) The 1998 ratio has been negatively impacted by the one-time merger and
    integration related costs associated with our merger with Beneficial
    Corporation ("Beneficial"). Excluding Beneficial merger and integration
    costs of $751 million (after-tax) our ratio of earnings to fixed charges
    would have been 1.83 percent. This non-GAAP financial ratio is provided for
    comparisons of our operating trends only.