<PAGE>

                                                                    EXHIBIT 10.2




--------------------------------------------------------------------------------





                   HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I

                                    Issuer

                                      and

                         HOUSEHOLD FINANCE CORPORATION

                                 Administrator




                           ADMINISTRATION AGREEMENT

                             Dated as of [.], 2000



--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                     <C>
SECTION  1  DUTIES OF ADMINISTRATOR..................................................    1
SECTION  2  RECORDS..................................................................    6
SECTION  3  COMPENSATION.............................................................    6
SECTION  4  ADDITIONAL INFORMATION TO BE FURNISHED TO ISSUER.........................    6
SECTION  5  INDEPENDENCE OF ADMINISTRATOR............................................    6
SECTION  6  NO JOINT VENTURE.........................................................    6
SECTION  7  OTHER ACTIVITIES OF ADMINISTRATOR........................................    6
     SECTION 8 TERM OF AGREEMENT; RESIGNATION AND REMOVAL OF ADMINISTRATOR...........    6
SECTION  9  ACTION UPON TERMINATION, RESIGNATION OR REMOVAL..........................    7
SECTION 10  NOTICES..................................................................    7
SECTION 11  AMENDMENTS...............................................................    8
SECTION 12  SUCCESSORS AND ASSIGNS...................................................    9
SECTION 13  GOVERNING LAW............................................................    9
SECTION 14  HEADINGS.................................................................    9
SECTION 15  COUNTERPARTS.............................................................    9
SECTION 16  SEVERABILITY.............................................................    9
     SECTION 17 NOT APPLICABLE TO HOUSEHOLD FINANCE CORPORATION IN OTHER CAPACITIES..    9
SECTION 18  LIMITATION OF LIABILITY OF OWNER TRUSTEE AND TRUSTEE.....................    9
SECTION 19  THIRD-PARTY BENEFICIARY..................................................   10
SECTION 20  NONPETITION COVENANTS....................................................   10
SECTION 21  SUCCESSOR ADMINISTRATOR..................................................   10
</TABLE>

SCHEDULE 1 - Administration Fee
EXHIBIT A - Form of Power of Attorney
<PAGE>

     ADMINISTRATION AGREEMENT dated as of [.], 2000 (the "Administration
                                                          --------------
Agreement"), between HOUSEHOLD CREDIT CARD MASTER NOTE TRUST I, a business trust
---------
organized and existing under the laws of the State of Delaware (herein, the
"Issuer"), and HOUSEHOLD FINANCE CORPORATION, a Delaware corporation ("Household
-------                                                                ---------
Finance Corporation"), as administrator (herein, the "Administrator").
-------------------                                   -------------

                             W I T N E S S E T H :

     WHEREAS the Issuer has entered into a Master Indenture, dated as of the
Closing Date (as amended, modified or supplemented from time to time in
accordance with the provisions thereof, the "Indenture"), between the Issuer and
                                             ---------
Wells Fargo Bank Minnesota, N.A., a national banking association, as indenture
trustee (the "Indenture Trustee") to provide for the issuance of its asset
              -----------------
backed notes (the "Notes");
                   -----

     WHEREAS the Issuer has entered into certain agreements in connection with
the issuance of the Notes and of the beneficial ownership interest of the
Issuer, including (i) a Transfer and Servicing Agreement, dated as of the
Closing Date (as amended, modified or supplemented from time to time in
accordance with the provisions thereof, the "Transfer and Servicing Agreement"),
                                             --------------------------------
among Household Receivables Funding, Inc. III, as Transferor (the "Transferor"),
                                                                   ----------
Household Finance Corporation, as Servicer (in such capacity, the "Servicer"),
                                                                   --------
and the Issuer, (ii) a Depository Agreement, dated [.], 2000 (the "Depository
                                                                   ----------
Agreement"), among the Issuer, the Indenture Trustee, and The Depository Trust
---------
Company, and (iii) the Indenture (the Transfer and Servicing Agreement, the
Depository Agreement, the Trust Agreement and the Indenture being hereinafter
referred to collectively as the "Related Agreements") (capitalized terms used
                                 ------------------
herein and not defined herein shall have the meanings assigned to such terms in
the Transfer and Servicing Agreement, or if not defined therein, in the
Indenture);

     WHEREAS pursuant to the Related Agreements, the Issuer and the Owner
Trustee are required to perform certain duties in connection with (a) the Notes
and the collateral therefor pledged pursuant to the Indenture (the
"Receivables") and (b) the beneficial ownership interest in the Issuer (the
 -----------
holder of such interest being referred to herein as the "Owner");
                                                         -----

     WHEREAS the Issuer and the Owner Trustee desire to have the Administrator
perform certain of the duties of the Issuer and the Owner Trustee referred to in
the preceding clause, and to provide such additional services consistent with
the terms of this Agreement and the Related Agreements as the Issuer and the
Owner Trustee may from time to time request;

     WHEREAS the Administrator has the capacity to provide the services required
hereby and is willing to perform such services for the Issuer and the Owner
Trustee on the terms set forth herein;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties agree as follows:

     Section 1.  Duties of Administrator.
                 -----------------------

     (a)  Duties with Respect to the Related Agreements.
          ---------------------------------------------

          (i)    The Administrator shall consult with the Owner Trustee
     regarding the duties of the Issuer and the Owner Trustee under the Related
     Agreements. The Administrator shall monitor the performance of the Issuer
     and shall advise the Owner Trustee when action is necessary to comply with
     the Issuer's or the Owner Trustee's duties under the Related Agreements.
<PAGE>

                           ADMINISTRATION AGREEMENT

     The Administrator shall prepare for execution by the Issuer or the Owner
     Trustee or shall cause the preparation by other appropriate persons of all
     such documents, reports, filings, instruments, certificates and opinions as
     it shall be the duty of the Issuer or the Owner Trustee to prepare, file or
     deliver pursuant to any Related Agreement.  In furtherance of the
     foregoing, the Administrator shall take all appropriate action that it is
     the duty of the Issuer or the Owner Trustee to take pursuant to the
     Indenture including, without limitation, such of the foregoing as are
     required with respect to the following matters under the Indenture
     (references are to sections of the Indenture):

               (1)  the preparation of or obtaining of the documents and
          instruments required for authentication of the Notes, if any, and
          delivery of the same to the Indenture Trustee (Section 2.03);

               (2)  the duty to cause the Note Register to be kept and to give
          the Indenture Trustee notice of any appointment of a new Note
          Registrar and the location, or change in location, of the Note
          Register (Section 2.05);

               (3)  the furnishing of the Indenture Trustee, the Servicer, any
          Noteholder or the Paying Agent with the names and addresses of
          Noteholders after receipt of a written request therefor from the
          Indenture Trustee, the Servicer, any Noteholder or the Paying Agent,
          respectively (Section 2.09(a));

               (4)  the preparation, obtaining or filing of the instruments,
          opinions and certificates and other documents required for the release
          of collateral (Section 2.11);

               (5)  the payment of principal and interest in accordance with the
          terms of the Notes as specified in the relevant Indenture Supplement
          (Section 3.01(a));

               (6)  the duty to cause newly appointed Paying Agents, if any, to
          deliver to the Indenture Trustee the instrument specified in the
          Indenture regarding funds held in trust (Section 3.03);

               (7)  the direction to Paying Agents to pay to the Indenture
          Trustee all sums held in trust by such Paying Agents (Section 3.03);

               (8)  the obtaining and preservation of the Issuer's qualification
          to do business in each jurisdiction in which such qualification is or
          shall be necessary to protect the validity and enforceability of the
          Indenture, the Notes, the Receivables and each other instrument and
          agreement (Section 3.04);

               (9)  the preparation of all supplements, amendments, financing
          statements,  continuation statements, if any, instruments of further
          assurance and other instruments necessary to protect the Trust Estate
          (Section 3.05);

               (10) the obtaining of the Opinion of Counsel on the Closing Date
          and the annual delivery of Opinions of Counsel as to the Trust Estate,
          and the annual delivery of the Officers' Certificate and certain other
          statements as to compliance with the Indenture (Sections 3.06 and
          3.09);

               (11) the identification to the Indenture Trustee in an Officers'
          Certificate of a Person with whom the Issuer has contracted to perform
          its duties under the Indenture (Section 3.07(b));

                                       2
<PAGE>

               (12) the delivery of notice to the Indenture Trustee of the
          occurrence of any Servicer Default of which the Issuer has knowledge
          and the action, if any, the Issuer is taking in connection with such
          default (Section 3.07(d));

               (13) the delivery to the Indenture Trustee, within 120 days after
          the end of each fiscal year of the Issuer of an Officer's Certificate
          with respect to various matters relating to compliance with the
          Indenture (Section 3.09);

               (14) the preparation and obtaining of documents and instruments
          required for the release of the Issuer from its obligation under the
          Indenture (Section 3.10);

               (15) the delivery of notice to the Indenture Trustee of each
          Event of Default and each default by the Servicer or the Transferor
          under the Transfer and Servicing Agreement (Section 3.19);

               (16) the monitoring of the Issuer's obligations as to the
          satisfaction and discharge of the Indenture and the preparation of an
          Officers' Certificate and the obtaining of the Opinion of Counsel and
          the Independent Certificate relating thereto (Section 4.01);

               (17) the taking of all reasonable steps available to remedy the
          consequences of the occurrence and continuation of an Event of Default
          specified in clauses (c) and (d) of Section 5.02 of the Indenture and
          the compliance with any written directive of the Indenture Trustee
          with respect to the sale of the Trust Estate in a commercially
          reasonable manner if an Event of Default specified in clause (a) or
          (b) of Section 5.02 of the Indenture shall have occurred and be
          continuing (Section 5.05);

               (18) the preparation of any written instruments required to
          confirm more fully the authority of any co-trustee or separate trustee
          and any written instruments necessary in connection with the
          resignation or removal of any co-trustee or separate trustee (Sections
          6.08 and 6.10);

               (19) the preparation of an Issuer Request and Officers'
          Certificate and the obtaining of an Opinion of Counsel and Independent
          Certificates, if necessary, for the release of the Trust Estate
          (Sections 8.09 and 8.10);

               (20) the preparation of Issuer Orders and the obtaining of
          Opinions of Counsel with respect to the execution of supplemental
          indentures and the mailing to the Noteholders of notices with respect
          to such supplemental indentures (Sections 10.01, 10.02 and 10.03);

               (21) the execution of new Notes conforming to any supplemental
          indenture (Section 10.06);

               (22) the preparation of all Officers' Certificates, Opinions of
          Counsel and Independent Certificates with respect to any requests by
          the Issuer to the Indenture Trustee to take any action under the
          Indenture (Section 12.01(a));

               (23) the preparation and delivery of Officers' Certificates and
          the obtaining of Independent Certificates, if necessary, for the
          release of property from the lien of the Indenture (Section 12.01(b));

                                       3
<PAGE>

               (24) the notification of each Rating Agency of the information
          required pursuant to Section 12.05 of the Indenture (Section 12.05);

               (25) the preparation and delivery to Noteholders and the
          Indenture Trustee of any agreements with respect to alternate payment
          and notice provisions (Section 12.06); and

               (26) comply with the provisions of the Transfer and Servicing
          Agreement.

          (ii) The Administrator will:

               (1)  pay the Indenture Trustee from time to time reasonable
          compensation for all services rendered by the Indenture Trustee under
          the Indenture (which compensation shall not be limited by any
          provision of law in regard to the compensation of a trustee of an
          express trust);

               (2)  except as otherwise expressly provided in the Indenture,
          reimburse the Indenture Trustee upon its request for all reasonable
          expenses, disbursements and advances incurred or made by the Indenture
          Trustee in accordance with any provision of the Indenture (including
          the reasonable compensation, expenses and disbursements of its agents
          and either in-house counsel or outside counsel, but not both), except
          any such expense, disbursement or advance as may be attributable to
          its negligence or bad faith;

               (3)  indemnify, to the fullest extent permitted by law, the
          Indenture Trustee and its officers, directors, employees and agents
          for, and to hold them harmless against, any losses, liability or
          expense incurred without negligence or bad faith on their part,
          arising out of or in connection with the acceptance or administration
          of the transactions contemplated by the Indenture, including the
          reasonable costs and expenses of defending themselves against any
          claim or liability in connection with the exercise or performance of
          any of their powers or duties under the Indenture; and

               (4)  indemnify, to the fullest extent permitted by law, the Owner
          Trustee and its officers, directors, employees and agents for, and to
          hold them harmless against, any losses, liability or expense incurred
          without negligence or bad faith on their part, arising out of or in
          connection with the acceptance or administration of the transactions
          contemplated by the Trust Agreement, including the reasonable costs
          and expenses of defending themselves against any claim or liability in
          connection with the exercise or performance of any of their powers or
          duties under the Trust Agreement.

     (b)  Additional Duties.
          -----------------

          (i)  In addition to the duties of the Administrator set forth above,
     the Administrator shall perform all duties and obligations of the Issuer
     under the Related Agreements and shall perform such calculations and shall
     prepare for execution by the Issuer and shall cause the preparation by
     other appropriate persons of all such documents, reports, filings,
     instruments, certificates and opinions as it shall be the duty of the
     Issuer or the Owner Trustee to prepare, file or deliver pursuant to the
     Related Agreements, and at the request of the Issuer shall take all
     appropriate action that it is the duty of the Issuer or the Owner Trustee
     to take pursuant to the Related Agreements.  Subject to Section 5 of this
     Agreement, and in accordance with the directions of the Issuer, the
     Administrator shall administer, perform or supervise the performance of
     such other activities in connection with the Receivables (including the
     Related Agreements) as

                                       4
<PAGE>

     are not covered by any of the foregoing provisions and as are expressly
     requested by the Owner Trustee and are reasonably within the capability of
     the Administrator.

          (ii)   The Administrator shall perform the duties of the Administrator
     specified in Section 9.02 of the Trust Agreement required to be performed
     in connection with the resignation or removal of the Owner Trustee, and any
     other duties expressly required to be performed by the Administrator under
     the Trust Agreement.

          (iii)  In carrying out the foregoing duties or any of its other
     obligations under this Agreement, the Administrator may enter into
     transactions with or otherwise deal with any of its Affiliates; provided,
     however, that the terms of any such transactions or dealings shall be in
     accordance with any directions received from the Issuer and shall be, in
     the Administrator's opinion, no less favorable to the Issuer than would be
     available from unaffiliated parties.

          (iv)   It is the intention of the parties hereto that the
     Administrator shall, and the Administrator hereby agrees to, prepare, file
     and deliver on behalf of the Issuer all such documents, reports, filings,
     instruments, certificates and opinions as it shall be the duty of the
     Issuer to prepare, file or deliver pursuant to the Related Documents. In
     furtherance thereof, the Owner Trustee shall, on behalf of the Issuer,
     execute and deliver to the Administrator and its agents, and to each
     successor Administrator appointed pursuant to the terms hereof, one or more
     powers of attorney substantially in the form of Exhibit A hereto,
     appointing the Administrator the attorney-in-fact of the Issuer for the
     purpose of executing on behalf of the Issuer all such documents, reports,
     filings, instruments, certificates and opinions.

     (c)  Non-Ministerial Matters.
          -----------------------

          (i)    With respect to matters that in the reasonable judgment of the
     Administrator are non-ministerial, the Administrator shall not take any
     action unless within a reasonable time before the taking of such action,
     the Administrator shall have notified the Owner Trustee of the proposed
     action and the Owner Trustee shall not have withheld consent or provided an
     alternative direction. For the purpose of the preceding sentence, "non-
     ministerial matters" shall include, without limitation:

                 (1)  the amendment of or any supplement to the Indenture;

                 (2)  the initiation of any claim or lawsuit by the Issuer and
          the compromise of any action, claim or lawsuit brought by or against
          the Issuer (other than in connection with the collection or
          enforcement of the Collateral);

                 (3)  the amendment, change or modification of the Related
          Agreements;

                 (4)  the appointment of successor Note Registrars, successor
          Paying Agents and successor Indenture Trustees pursuant to the
          Indenture or the appointment of successor Administrators, or the
          consent to the assignment by the Note Registrar, Paying Agent or
          Indenture Trustee of its obligations under the Indenture; and

                 (5)  the removal of the Indenture Trustee.

          (ii)   Notwithstanding anything to the contrary in this Agreement, the
     Administrator shall not be obligated to, and shall not, (A) make any
     payments to the Noteholders or the Owner under the Related Agreements, (B)
     sell the Trust Estate pursuant to Section 5.05 of the Indenture

                                       5
<PAGE>

     other than pursuant to a written directive of the Indenture Trustee or (C)
     take any other action that the Issuer directs the Administrator not to take
     on its behalf.

     Section 2.  Records.  The Administrator shall maintain appropriate books of
                 -------
account and records relating to services performed hereunder, which books of
account and records shall be accessible for inspection by the Issuer, the Owner
Trustee, the Indenture Trustee and the Transferor at any time during normal
business hours.

     Section 3.  Compensation.  As compensation for the performance of the
                 ------------
Administrator's obligations under this Agreement, the Administrator shall be
entitled to the amount set forth on Schedule 1 which shall be payable in
                                    ----------
accordance with the applicable Indenture Supplement.  The Transferor shall be
responsible for payment of the Administrator's fees (to the extent not paid
pursuant to the applicable Indenture Supplement) and shall reimburse the
Administrator for any of its liabilities and extra out-of-pocket expenses
related to its performance hereunder or under any Related Document (including
without limitation those expenses set forth in Section 1(a)(ii) of this
Agreement).

     Section 4.  Additional Information to be Furnished to Issuer.  The
                 ------------------------------------------------
Administrator shall furnish to the Issuer from time to time such additional
information regarding the Receivables as the Issuer shall reasonably request.

     Section 5.  Independence of Administrator.  For all purposes of this
                 -----------------------------
Agreement, the Administrator shall be an independent contractor and shall not be
subject to the supervision of the Issuer or the Owner Trustee with respect to
the manner in which it accomplishes the performance of its obligations
hereunder. Unless expressly authorized by the Issuer, the Administrator shall
have no authority to act for or represent the Issuer or the Owner Trustee in any
way and shall not otherwise be deemed an agent of the Issuer or the Owner
Trustee.

     Section 6.  No Joint Venture.  Nothing contained in this Agreement shall
                 ----------------
(a) constitute the Administrator and either of the Issuer or the Owner Trustee
as members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (b) be construed to impose any
liability as such on any of them or (c) be deemed to confer on any of them any
express, implied or apparent authority to incur any obligation or liability on
behalf of the others.

     Section 7.  Other Activities of Administrator.  Nothing herein shall
                 ---------------------------------
prevent the Administrator or its affiliates from engaging in other businesses
or, in its sole discretion, from acting in a similar capacity as an
administrator for any other person or entity even though such person or entity
may engage in business activities similar to those of the Issuer, the Owner
Trustee or the Indenture Trustee.

     Section 8.  Term of Agreement; Resignation and Removal of Administrator.
                 -----------------------------------------------------------

     (a)  This Agreement shall continue in force until the termination of the
Issuer, upon which event this Agreement shall automatically terminate.

     (b)  Subject to Section 8(e) and (f), the Administrator may resign its
                     --------------------
duties hereunder by providing the Issuer with at least 60 days prior written
notice.

     (c)  Subject to Section 8(e) and (f), the Issuer may remove the
                     --------------------
Administrator without cause by providing the Administrator with at least 60 days
prior written notice.

                                       6
<PAGE>

     (d)  Subject to Section 8(e) and (f), at the sole option of the Issuer, the
                     --------------------
Administrator may be removed immediately upon written notice of termination from
the Issuer to the Administrator if any of the following events shall occur:

          (i)   the Administrator shall default in the performance of any of its
     duties under this Agreement and, after notice of such default, shall not
     cure such default within 30 days (or, if such default cannot be cured in
     such time, shall not give within 30 days such assurance of cure as shall be
     reasonably satisfactory to the Issuer);

          (ii)  a court having jurisdiction in the premises shall enter a decree
     or order for relief, and such decree or order shall not have been vacated
     within 60 days, in respect of the Administrator in any involuntary case
     under any applicable bankruptcy, insolvency or other similar law now or
     hereafter in effect or appoint a receiver, liquidator, assignee, custodian,
     trustee, sequestrator or similar official for the Administrator or any
     substantial part of its property or order the winding-up or liquidation of
     its affairs; or

          (iii) the Administrator shall commence a voluntary case under any
     applicable bankruptcy, insolvency or other similar law now or hereafter in
     effect, shall consent to the entry of an order for relief in an involuntary
     case under any such law, or shall consent to the appointment of a receiver,
     liquidator, assignee, trustee, custodian, sequestrator or similar official
     for the Administrator or any substantial part of its property, shall
     consent to the taking of possession by any such official of any substantial
     part of its property, shall make any general assignment for the benefit of
     creditors or shall fail generally to pay its debts as they become due.

                The Administrator agrees that if any of the events specified in
     clause (ii) or (iii) of this Section 8(d) shall occur, it shall give
     written notice thereof to the Issuer and the Indenture Trustee within seven
     days after the happening of such event.

     (e)  No resignation or removal of the Administrator pursuant to this
Section 8 shall be effective until (i) a successor Administrator shall have been
appointed by the Issuer and (ii) such successor Administrator shall have agreed
in writing to be bound by the terms of this Agreement in the same manner as the
Administrator is bound hereunder.

     (f)  The appointment of any successor Administrator shall be effective only
after satisfaction of the Rating Agency Condition with respect to the proposed
appointment.

     Section 9.  Action upon Termination, Resignation or Removal.  Promptly upon
                 -----------------------------------------------
the effective date of termination of this Agreement pursuant to Section 8(a) or
the resignation or removal of the Administrator pursuant to Section 8(b) or (c),
respectively, the Administrator shall be entitled to be paid all fees and
reimbursable expenses accruing to it to the date of such termination,
resignation or removal. The Administrator shall forthwith upon such termination
pursuant to Section 8(a) deliver to the Issuer all property and documents of or
relating to the Collateral then in the custody of the Administrator. In the
event of the resignation or removal of the Administrator pursuant to Section
8(b), (c) or (d), respectively, the Administrator shall cooperate with the
Issuer and take all reasonable steps requested to assist the Issuer in making an
orderly transfer of the duties of the Administrator.

     Section 10. Notices.  Any notice, report or other communication given
                 -------
hereunder shall be in writing and addressed as follows:

     (a)  if to the Issuer or the Owner Trustee, to

                                       7
<PAGE>

               Household Credit Card Master Note Trust I
               c/o Wilmington Trust Company
               Rodney Square North
               1100 North Market Street
               Wilmington, DE 19890-0001
               Telephone: 302-651-8856

     (b)  if to the Administrator or the Transferor, to

               Household Finance Corporation
               2700 Sanders Road
               Prospect Heights, Illinois 60070
               Telephone: 847-564-5000

     (c)  if to the Indenture Trustee, to

               Wells Fargo Bank Minnesota, N.A.
               MAC N9311-161, 6th & Marquette
               Minneapolis, MN 55479
               Attention: Asset Backed Securities
               Telephone: 612-667-8058

or to such other address as any party shall have provided to the other parties
in writing. Any notice required to be in writing hereunder shall be deemed given
if such notice is mailed by certified mail, postage prepaid, or hand-delivered
to the address of such party as provided above, except that notices to the
Indenture Trustee are effective only upon receipt.

     Section 11. Amendments.  This Agreement may be amended from time to time,
                 ----------
by a written amendment duly executed and delivered by the Issuer, the
Administrator and the Transferor, with the written consent of the Owner Trustee
(and with respect to subsections 1(a)(ii)(1), (2) and (3), the Indenture
Trustee), without the consent of any of the Noteholders or the Owner, (i) to
cure any ambiguity, (ii) to correct or supplement any provisions herein which
may be inconsistent with any other provisions herein, (iii) to add any other
provisions with respect to matters or questions arising under this Agreement
which shall not be inconsistent with the provisions of this Agreement, (iv) to
change, modify, delete or add any other obligation of the Issuer and Household
Finance Corporation; provided, however that no amendment pursuant to clause (iv)
of this Section 11 shall be effective unless the Issuer and Household Finance
Corporation have been notified in writing that the Rating Agency Condition has
been satisfied; provided, further, the Issuer and Household Finance Corporation
shall have delivered to the Indenture Trustee an Officer's Certificate, dated
the date of any such action, stating that each of the Issuer and Household
Finance Corporation reasonably believes that such action will not have an
Adverse Effect, unless the Owner Trustee and the Indenture Trustee shall consent
thereto.

     This Agreement may also be amended from time to time, by a written
amendment duly executed and delivered by the Issuer, the Administrator and the
Transferor, with the written consent of the Owner Trustee, the holders of Notes
evidencing not less than a majority in the Outstanding Amount of the Notes and
the Owner, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Agreement or modifying in any
manner the rights of Noteholders or the Owner; provided, however, that, without
the consent of the Holders of all of the Notes then outstanding, no such
amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on the Receivables or
distributions that are required to be made for the benefit of

                                       8
<PAGE>

the Noteholders or (b) reduce the aforesaid portion of the Outstanding Amount of
the Notes, the Holders of which are required to consent to any such amendment

     Prior to the execution of any such amendment or consent, the Administrator
shall furnish written notification of the substance of such amendment or consent
to each Rating Agency.  Promptly after the execution of any such amendment or
consent, the Administrator shall furnish written notification of the substance
of such amendment or consent to the Indenture Trustee.

     It shall not be necessary for the consent of Noteholders pursuant to this
Section 11 to approve the particular form of any proposed amendment or consent,
but it shall be sufficient if such consent shall approve the substance thereof.

     Section 12.  Successors and Assigns.  This Agreement may not be assigned by
                  ----------------------
the Administrator unless such assignment is previously consented to in writing
by the Issuer, the Transferor and the Owner Trustee and subject to the
satisfaction of the Rating Agency Condition in respect thereof.  An assignment
with such consent and satisfaction, if accepted by the assignee, shall bind the
assignee hereunder in the same manner as the Administrator is bound hereunder.
Notwithstanding the foregoing, this Agreement may be assigned by the
Administrator without the consent of the Issuer, the Transferor, the Owner
Trustee or the Rating Agencies to a corporation or other organization that is a
successor (by merger, consolidation or purchase of assets) to the Administrator,
provided that such successor organization executes and delivers to the Issuer,
the Transferor and the Owner Trustee an agreement in which such corporation or
other organization agrees to be bound hereunder by the terms of said assignment
in the same manner as the Administrator is bound hereunder.  Subject to the
foregoing, this Agreement shall bind any successors or assigns of the parties
hereto.

     Section 13.  GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN
                  -------------
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 14.  Headings.  The section headings hereof have been inserted for
                  --------
convenience of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement.

     Section 15   Counterparts.  This Agreement may be executed in counterparts,
                  ------------
each of which when so executed shall together constitute but one and the same
agreement.

     Section 16.  Severability.  Any provision of this Agreement that is
                  ------------
prohibited or unenforceable in any jurisdiction shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     Section 17.  Not Applicable to Household Finance Corporation in Other
                  --------------------------------------------------------
Capacities.  Nothing in this Agreement shall affect any obligation Household
----------
Finance Corporation may have in any other capacity.

     Section 18.  Limitation of Liability of Owner Trustee and Trustee.
                  ----------------------------------------------------
Notwithstanding anything contained herein to the contrary, this instrument has
been signed by Wilmington Trust Company not in its individual capacity but
solely in its capacity as Owner Trustee of the Issuer and in no event shall
Wilmington Trust Company in its individual capacity or any beneficial owner of
the Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder, as to all of which
recourse shall be had solely to the assets of the Issuer.  For all purposes of

                                       9
<PAGE>

this Agreement, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles IV, V, VI and VII of the Trust
Agreement.

     Section 19.  Third-Party Beneficiary.
                  -----------------------

     (a)  The Owner Trustee is a third-party beneficiary to this Agreement and
is entitled to the rights and benefits hereunder and may enforce the provisions
hereof as if it were a party hereto.

     (b)  Solely with respect to any amounts owing to the Indenture Trustee
pursuant to Section 6.07 of the Indenture, the Indenture Trustee is a third-
party beneficiary to this Agreement and is entitled to the rights and benefits
hereunder and may enforce the provisions hereof as if it were a party hereto.

     Section 20.  Nonpetition Covenants.  Notwithstanding any prior termination
                  ---------------------
of this Agreement, the Administrator shall not at any time with respect to the
Issuer or the Transferor acquiesce, petition or otherwise invoke or cause the
Issuer or the Transferor to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Issuer
or the Transferor under any Federal or state bankruptcy, insolvency or similar
law or appointing a receiver, conservator, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Issuer or the
Transferor or any substantial part of its property, or ordering the winding up
or liquidation of the affairs of the Issuer or the Transferor; provided,
however, that this Section 20 shall not operate to preclude any remedy described
in Article V of the Indenture.

     Section 21.  Successor Administrator.  In the event of a servicing transfer
                  -----------------------
pursuant to Article V of the Transfer and Servicing Agreement, the successor
servicer under the Transfer and Servicing Agreement shall, upon the date of such
servicing transfer, become the successor Administrator hereunder.
"Administrator" shall mean initially Household Finance Corporation and
--------------
thereafter its permitted successor and assigns as provided in Section 12 or any
successor Administrator as provided in this Section 21.

                                      10
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

                              HOUSEHOLD CREDIT CARD MASTER NOTE
                                TRUST I


                              By: WILMINGTON TRUST COMPANY,
                                   not in its individual capacity
                                   but solely as Owner Trustee,


                              By: _______________________________________
                                  Name:
                                  Title:


                              HOUSEHOLD FINANCE CORPORATION,
                               as Administrator,


                              By: _________________________________________
                                  Name:
                                  Title:

                 [Signature Page to Administration Agreement]
<PAGE>

                                                                      SCHEDULE 1
<PAGE>

                                                                       EXHIBIT A
                                                     [Form of Power of Attorney]

                               POWER OF ATTORNEY

STATE OF DELAWARE      )
                       )
COUNTY OF __________   )


          KNOW ALL MEN BY THESE PRESENTS, that Household Credit Card Master Note
Trust I, a Delaware statutory business trust ("Trust"), does hereby make,
                                               -----
constitute and appoint Household Finance Corporation, as Administrator under the
Administration Agreement (as defined below), and its agents and attorneys, as
Attorneys-in-Fact to execute on behalf of the Trust all such documents, reports,
filings, instruments, certificates and opinions as it shall be the duty of the
Trust to prepare, file or deliver pursuant to the Related Documents (as defined
in the Administration Agreement), including, without limitation, to appear for
and represent the Trust in connection with the preparation, filing and audit of
federal, state and local tax returns pertaining to the Trust, and with full
power to perform any and all acts associated with such returns and audits that
the Trust could perform, including without limitation, the right to distribute
and receive confidential information, defend and assert positions in response to
audits, initiate and defend litigation, and to execute waivers of restriction on
assessments of deficiencies, consents to the extension of any statutory or
regulatory time limit, and settlements.  For the purpose of this Power of
Attorney, the term "Administration Agreement" means the Administration
                    ------------------------
Agreement, dated as of _____ __, 2000, between the Trust and Household Finance
Corporation, as Administrator and as such may be amended from time to time.


          This power of attorney is coupled with an interest and shall survive
and not be affected by the subsequent bankruptcy or dissolution of the Trust.


     All powers of attorney for this purpose heretofore filed or executed by the
Trust are hereby revoked.


     EXECUTED this __ day of _______, 2000.


                                        HOUSEHOLD CREDIT CARD MASTER
                                         NOTE TRUST I

                                        By: WILMINGTON TRUST COMPANY,
                                            not in its individual capacity
                                            but solely as Owner Trustee

                                        By: _________________________
                                            Name:
                                            Title: