If you’re struggling to build—or rebuild—your credit, it can be difficult to get approved for a credit card or loan with competitive rates. Self, formerly Self Lender, offers two products to help individuals with bad or limited credit: a Credit Builder Account and the Self Visa Credit Card.
Here’s how an account with Self could help you build your credit profile.
Efficient and cost-effective method of showing payment history and financial responsibility
You cannot access the money immediately
Relatively small payments and short commitment compared to the possible long-term benefits of having good credit
Administrative costs and finance charges make up a significant percentage of the loan amount
Results are seen on credit report as early as 60 days from the first monthly payment
Failure to make on-time monthly payments will appear on your credit reports, which can hurt your credit score
Optional Visa credit card has no upfront costs and is secured by the proceeds in your Credit Builder Account
The Self Visa Credit Card has a relatively high annual percentage rate (APR) and no reward program
Self Credit Builder Account
A Self Credit Builder Account is a small, secured loan that works like a traditional loan in reverse: the funds are put in a CD and are disbursed to you after you’ve paid off the loan. Your monthly payments are reported to the credit bureaus, demonstrating to them—and future lenders—that you are capable of making regular, timely payments. The process is simple:
You apply for a small loan. If you’re approved, Self’s lending partners place your funds in certificate of deposit for the chosen term—either 12 months or 24 months.
You pay $25 to $150 each month. Choose your monthly commitment and make regular payments for the term of your loan.
You build credit history and savings. Your payments are reported to all three credit bureaus monthly. As you make timely payments, your credit profile can improve. And once the account is paid off, you’ll have hundreds of dollars saved up to use.
If you need money immediately, a Credit Builder Account from Self might not be the right product for you. Consider looking for a traditional personal loan with terms that work with your financial situation.
Self offers one- and two-year terms. A larger loan won’t necessarily build your credit any faster, so choose the terms that work best for you.*
Nonrefundable $9 administrative fee $0.30 + 2.99% convenience fee per debit card transaction Early withdrawal fee depending on account size, up to $5 5% late payment fee
APR
Varies but does not exceed 16%
Credit check
None required
Credit reporting
Sent monthly to all three credit bureaus;
Availability
All 50 states
Late payment penalties
15-day grace period, then 5% of the scheduled monthly payment; payments more than 30 days late are reported to the bureaus
Payback terms
You can pay back early or close your account early for a fee ($5 maximum, depending on account size)
Minimum income requirement
None
Perks
Access to free credit monitoring and an Experian VantageScore during the repayment period. If you want free credit monitoring after the term, you can get your Experian VantageScore 3.0 from Credit.com
Applying for a Credit Builder Account is fast and easy. If you don’t have any credit history established, it may take a bit longer to confirm your identity. Otherwise, there are a few requirements for application:
Be 18 years or older
Be a US citizen or permanent US resident
Have a Social Security number
Have either a bank account, debit card, or prepaid card
Part of building your credit is having a mix of different accounts on your credit report. For Credit Builder Account holders, the Self Visa Credit Card offers the opportunity to add a revolving account tradeline to your credit report.
28.74% This APR will vary with the market based on the Prime Rate
Balance Transfer:
N/A
Annual Fee:
$25. The annual fee will reduce the amount of credit initially available to you. (If your initial credit limit is $100, for instance, your available credit will be only $75.)
Credit Needed:
Poor-Bad-No Credit
Snapshot of Card Features
Combined credit builder account and secured card products to help you build credit and save* money (minus interest and fees) No credit check.
No credit check. No credit history required.
Start with a credit builder account that reports to all 3 credit bureaus. Each on-time monthly payment builds credit history and savings. Choose the plan that works for you.
Make at least 3 monthly payments on time, have $100 or more in savings progress in your account, and be in good standing* You’ll automatically be eligible for the Self Visa® Credit Card, without a credit check.
Your savings progress from your Credit Builder Account acts as your refundable security deposit.
The Self Visa® Credit Card is accepted at millions of locations in the U.S.
Stay on track with credit utilization monitoring, auto pay, account reminders, a mobile app, and dedicated customer support.
*Sample Product for Credit Builder Account: $48 monthly payment, 12 month term with a $9 admin fee at a 15.92% Annual Percentage Rate. Please refer to www.self.inc/pricing for the most recent pricing options.
The Self Visa Credit Card has no additional cost because its limit is secured by the savings progress in your Credit Builder Account. And because the Self Visa is a secured card, Credit Builder Account holders are pre-approved once you meet certain eligibility requirements, and Self won’t run a credit check or ding your credit with a hard inquiry.
To be eligible for the Self Visa, you need only meet these three requirements:
Have a Credit Builder Account in good standing
Pay the previous three monthly Credit Builder Account payments on time
Maintain a minimum of $100 in the savings progress of your Credit Builder Account
As long as you meet those criteria, you will be eligible for the card. If you would rather not have a credit card, that’s fine! You don’t need one to maintain your Credit Builder Account. You can find additional ways to improve your credit score without a credit card.
If you do get the Self Visa Credit Card, you can keep your card open even after you close your credit builder account. But because it is secured, the funds you used from your Credit Builder Account to open the card will be held by Self and not paid out when you close your account.
This card is a no-frills option for Credit Builder Account holders looking for a simple way to add a tradeline, demonstrate they can make on-time payments to a variety of credit accounts, and build their credit score. You can’t add authorized users, and the card doesn’t have any rewards.
A Credit Builder Account from Self can give many Americans a foot in the door and a new start toward better credit. Know what you’re agreeing to and whether a Credit Builder Account and Self Visa Credit Card will benefit you. In rare cases, the administrative fees and APR might not make these products useful to certain people. On the other hand, Self offers a relatively quick way to demonstrate to the credit bureaus that you are a responsible credit user, potentially increasing your score and helping you acquire even better rates in the future.
Sign Up for ExtraCredit for a bonus cashback offer when you apply for a Credit Builder Account.
* Sample products: $25 month payment, 24 month term with a $9 admin fee at a 15.92% Annual Percentage Rate; $35 month payment, 24 month term with a $9 admin fee at a 15.97% Annual Percentage Rate; $48 month payment, 12 month term with a $9 admin fee at a 15.65% Annual Percentage Rate; $150 month payment, 12 month term with a $9 admin fee at a 15.91% Annual Percentage Rate. Please refer to www.Self.inc/pricing for the most recent pricing options.
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