Self Lender 2020 Review
Self Credit Builder Loans Review: Coverage, Pros & Cons
With two ways to improve your credit score, Self offers a dynamic approach to building your credit the right way.
Self offers anyone that is working to build or rebuild their credit easy options to build their financial foundation. With two product lines to choose from, you can work to improve your credit score without putting money on the line.
We love that Self understands that it can be difficult for people to rebuild their credit score. The company has created solutions to get your credit score back on track with minimal hassle. In this review, we will cover everything you need to know about Self and how this company stands out.
Self: What You Need to Know
Self, formerly known as Self Lender, was founded in 2014 to help customers improve their credit score. The company strives to help people from all walks of life build or rebuild their credit. The goal is to help you establish healthy habits and a solid financial position for the future.
As of 2019, over 400,000 people have used Self to improve their credit. It is a worthwhile company that offers a solid solution to a common problem.
What Self Has to Offer
Self offers two different product lines.
Their flagship product is the Credit Builder Account. With a minimum monthly commitment of $25, you can start building your credit through this credit builder loan.
Recently, they launched a secured credit card as their second product. The card is only available to customers with an active Credit Builder Account, so you’ll need to start there.
How Does A Credit Builder Account with Self Work?
The Credit Builder Account offered through Self is a type of credit builder loan. After you are approved for a loan, you’ll need to pay a one-time administrative fee to open the account. While you make payments, the loan amount will be held in a Certificate of Deposit that is FDIC insured. You won’t receive this money until you repay your loan in full.
You will make payments over the next 12 to 24 months with a payment plan that suits your budget. The payments you make or miss are reported to all three credit bureaus.
Plus, each will build your savings over the term of the loan. Brett Billick, Chief Marketing Officer at Self, says, “a lot of our customers treat it like a forced savings plan.” Not only can you build your credit but also save for long-term financial goals.
How Does A Self Visa Credit Card Work?
A second way to improve your credit is through a secured credit card. Although most secured credit cards require an upfront cash deposit to get started, Self does not.
In order to open a Self Visa Credit Card, you’ll need to have an active Credit Builder Account in good standing. Once you have built at least $100 of savings in your Credit Builder Account, you’ll be eligible to open a Self Visa Credit Card.
The biggest benefit of this card is that you will not have to put down a deposit. Instead, they use the money in your Credit Builder Account as the security deposit for your credit card. Also, Self doesn’t perform a credit check to open a Self Visa Credit Card so there is no need to worry about a hard inquiry hurting your credit score.
Where is Self Available?
If you are a United States citizen or permanent resident, then you are in luck. Self is available in all 50 states. However, it is not available in Canada or the United Kingdom.
How to Get Started with Self
If you are interested in working with Self, then here’s how to get started.
What are the Eligibility Requirements?
In order to open a Credit Builder account, you’ll need to meet the following criteria:
- You must be a U.S. citizen.
- You must be at least 18 years old.
- You must have a valid bank account.
In order to become eligible for a Self Visa Credit Card, you’ll need to meet the following criteria:
- Hold an active Credit Builder Account in good standing.
- Reach at least $100 of savings progress in your Credit Builder Account.
Self Application process
If Self sounds like a good fit, then here’s how to fill out an application:
- Head to the Self website
- Check out the pricing options to find a plan to suits your budget.
- Click the “Apply” button.
- Let them know that you want to build credit and savings.
- Join Self with a free account.
- Select the Credit Builder Account that you want to apply for.
- Fill in your information.
- Wait until they approve your application which will include a ChexSystems check.
- Once approved, start building credit and savings through on-time payments.
How to Contact Self
Address: 515 Congress Ave #2200 Austin, Texas 78701
Customer service: (877) 883-0999
Support: Contact Form
Instagram: www.instagram.com/SelfLender/ Facebook: www.facebook.com/SelfLender Twitter: @SelfLender
Is Self Right for Me?
Self is a great opportunity for first-time credit builders to start their journey the right way. After all, when the first thing you put on your credit report is the right thing, you can expect to see great results. Young adults looking to build their credit for future purchases can’t go wrong with these options.
If you are working on rebuilding your credit, then Self is still a good option.
- Payments are reported to all three credit bureaus.
- No credit check required for approval.
- The option to open a secured credit card without an upfront security deposit.
- Reasonable interest rates
- Two credit account types available that could improve your score.
- Payments are reported to all three credit bureaus, including late payments.
- The interest earned on the CD is relatively small.
Self has flexible monthly commitment options. You simply have to pick the best option for your budget. Be realistic about what you can afford to ensure you can make on-time payments every month.
For the Credit Builder Account, you can choose to make monthly payments between $25 and $150.
You can choose between these options:
- $25 over 24 months with a $520 payout at the end of the loan term.
- $48 over 12 months with a $539 payout at the end of the loan term.
- $89 over 12 months with a $991 payout at the end of the loan term.
- $150 over 12 months with a $1,663 payout at the end of the loan term.
The size of the monthly payment will determine the number of payments you need to make. For the $25 per month option, you’ll need to make payments for 24 months. For the $150 per month option, you’ll only need to make payments for 12 months.
What is the Cost of a Self Loan?
You should also be aware of several fees for the Credit Builder Account. There is a $9 non-refundable administrative fee that is required to open your Credit Builder Account. Also, if you need to cancel your account early there is a small fee under $5 to do so.
The loan itself has an interest rate of 14.14% and an APR of 15.92%. With that, you can expect some of each payment to go towards this interest.
For example, if you choose the $25 a month option for 24 months, you would make $600 worth of payments. However, you would only receive $520 at the end of the loan term. You may not receive the full amount of payments you are making back, but you do have the opportunity to build your credit score which might be worth the cost.
The Self Visa Credit Card also has costs to be aware of starting with a $25 annual fee. The card charges 23.74% APR and late payment fees of $15. However, you can avoid most of these costs by making on-time payments for your full balance each month.
The Bottom Line
Building your credit is not an easy feat. No matter where you are starting from, it can be a long road to a high credit score. However, it is possible to improve your credit score with responsible credit usage. Self offers the opportunity to do just that. You can utilize both the Credit Builder Account and the Self Visa Credit Card as an opportunity to show potential creditors that you are capable of managing your credit responsibly.
If you are determined to build your score for future financial goals, then you can’t go wrong by working with Self to make that happen. Self provides the opportunity but you need to take advantage of that through on-time payments to make a positive difference in your score.
Make it a priority to improve your credit score and take action today.
Frequently Asked Questions
Where is Self credit builder loan product available?
Self is available in all 50 states online or through their mobile app.
Can Self build credit for my business?
No. Only individuals can use Self to build personal credit.
Can I be denied for Self if I have bad credit or no credit?
Self does not deny anyone based on their credit and denial of a credit builder loan will not impact your credit. In the case you are denied, you will receive an adverse action with an explanation of your situation and what steps you can take for the future.
What is a credit builder loan?
Credit builder loans a specific loans offered by banks and credit unions to help borrowers with little, no, or bad credit to build and improve their credit history. Your lender will report your payments to the three major credit bureaus: Experian, Equifax, and TransUnion, which establishes and builds your credit history.
What is a secured credit card?
In order to open a secured credit card, you will have to make an upfront cash deposit. The deposit you make is usually tied to your credit limit. So the larger the deposit, the larger your credit limit. Although a secured credit card reduces the risk for the creditor, it can be difficult to fit into your budget.
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