In this Self credit builder reviews, I’ll give my personal perspective. I also discuss the benefits and drawbacks of their credit-building account, commonly referred to as a credit-building loan.
Table of Contents
Introduction to Self Credit Builder Reviews
Before we get into the Self credit builder reviews, let me give you some background information on the company.
Self is a fintech (financial technology) firm that helps you build credit. This is especially beneficial if you have no credit or a negative credit history. This happens when they use a credit-builder account guaranteed by FDIC-approved financial institutions (See FDIC disclosure in footer).
A credit builder account, also known as a credit builder loan, is a small loan taken out in your name to help you develop credit. Self, on the other hand, instead of disbursing the funds immediately to you, keeps them in the form of a secured loan by depositing your money in a CD (certificate of deposit).
What is a certificate of deposit?
A certificate of deposit is a type of time deposit offered by financial organizations. This certificate is valid for a set length of time after which you can withdraw your funds and earn additional interest. When compared to money market or savings accounts, they pay greater than average interest rates. They’re also one of the safest savings options available from banks.
They release the funds to you once the initial loan is paid off with on-time monthly payments over a period of 12 or 24 months.
This account is unique in that it reports on-time monthly payments to all three credit bureaus: Equifax, Experian, and Transunion.
Essentially, you’ll be rebuilding your credit without having to take out another loan or line of credit with the Self credit builder loan. Instead, you’ll be repaying a tiny secured personal loan that you took out on your own.
Self’s DIY Approach to Improving Credit
Using Self as a DIY method to credit improvement is a certain way to avoid paying exorbitant fees to repair your credit. I’m cautious of the different credit restoration companies that I see advertised on the internet. After running a google search on “boosting my credit,” it’s almost as if I see them everywhere I go online.
I’ve heard about frauds and a slew of terrible outcomes, and they don’t pique my attention. I also decided to give Self credit builder a try after reading some online reviews.
Is Self Credit Builder App Legit?
Yes, the Self application is legitimate. You can log in to your Self Credit Builder Loan account and check your account status at any time using the app. Security and privacy are also important to the organisation. Multiple levels of data encryption are used. Regardless of how fantastic the software is, it’s critical that you understand how it works.
How it Works
Once a Self credit-builder account is opened, the customer and the financial institution with which Self has matched them agree on the terms of service. After that, you’ll be able to make monthly deposits into the account.
Funds in the account are transferred to a certificate of deposit, which is subsequently returned to you at the end of the term through cheque or direct deposit, depending on your preference. On your behalf, Self will report on-time payments to all three major credit bureaus.
Within 30-60 days, your secured loan will appear on your credit report. Self consumers claim an increase in their credit score in as little as three months.
Depending on the monthly instalments you choose, the account can last anywhere from 12 to 24 months. As a result, your credit score will continue to grow as long as you pay your bills on time each month.
What Does the Self Credit-Builder Account Cost
They impose a $9 one-time non-refundable administrative fee to use their credit-building account. You can then choose how much you want to spend each month to help you rebuild your credit. For example, you could begin with as little as $25 a month to save $520 over the course of 24 months.
There are alternatives to pay $35, $48, or $150 each month over a 12-month term loan for those who want to create credit faster. As a result, the credit building loan will be greater. Additional product examples can be found in the image below. For the most up-to-date pricing alternatives, go visit www.self.inc/pricing.
The annual percentage rate (APR) on all accounts is lower than what many other creditors, including auto and credit card companies, would demand. Because you can pay off your account without penalty if you pay it off early, the amount of interest you pay is entirely up to you.
The FDIC backs all bank account certifications up to $250,000. (See FDIC disclosure in footer).
The Self Visa® Credit Card
Self has also launched a Visa card as a means of establishing credit. It’s a secured credit card with a percentage of your savings progress ($100 or more) as collateral. This credit card’s current APR is 23.99 percent. Based on the Prime Rate, this APR will fluctuate with the market. To apply for a Self Visa Credit Card, you must have an open credit-builder account and have have established the following:
- 3 payments completed on time each month
- You have a balance of $100 or more in your savings progress account
- and your account is in good standing
Opening a Self Visa Credit Card
It’s easy to get a Self Visa Credit Card. You can set a credit card limit based on your savings progress in your credit-builder account.
The good news is that because you already have a Self credit-builder account, you won’t need a credit check! You won’t need any additional funds because your savings progress secures your card and establishes your limit.
You’ll then need to double-check your address to ensure that the card is delivered to the correct destination. You’ll need to activate your card after you receive it before you can use it. Monitor your expenditures and pay your bills on time every month to keep on top of your credit-building progress.
Good-standing credit accounts may be eligible for credit limit increases over time. Furthermore, you can use your card everywhere! In the United States, Visa credit cards are accepted.
The Benefits (pros) of Self Credit Builder Reviews
One of the most significant advantages of Self is the ability to increase your credit score. Your ability to make on-time payments to any creditors you owe, according to Experian, is the most influential aspect on your credit report that influences your overall score.
Your credit score may improve when you make on-time monthly payments into a CD, which you will receive back at the conclusion of the term you requested, if you report to all three credit bureaus monthly. This is a one-of-a-kind technique to improve your credit score without having to make a large financial commitment.
Regardless of your past, Self is an opportunity to enhance your credit in front of a future life event, such as buying a home or a new car. You can get more traditional financial products if your credit score is higher. You can potentially save thousands of dollars in interest over time.
Self also offers 24/7 access via a smartphone app and an online account that can be accessed from anywhere with an internet connection.
As previously indicated, you’ll be able to open your own Self Visa Credit Card. It doesn’t get any simpler than that, with a FAQ page and further customer help if necessary. The bottom line is that it’s a simple instrument to employ in order to improve your financial situation.
The Cons of Using Self Credit Builder
One of the major disadvantages is the expense of the fees (one-time administrative and interest fees). Furthermore, you will not be able to receive the funds until your credit builder loan matures or you have completed all of your payments according to the terms of your agreement.
Your limit on the Self Visa Credit Card is determined by your savings progress. The annual percentage rate (APR) is likewise quite high, at 23.99 percent. As you use this card to establish and improve your credit, it’s a good idea to plan to pay off your bill in full each month.
When considering a loan, make sure to analyse the benefits and drawbacks of this Self credit builder review.
How to Open a Self Account
The ability to open a Self account is determined by the following criteria:
Credit builder account requirements
In order to qualify, you must:
- Have a valid SSN
- A checking account or a prepaid debit card
- Legal resident in the United States
- You must be 18 years old atleast.
There’s good news! No minimum income requirement to open an account.
If you have a credit history, you may be asked some verification questions based on it in order to prove your identity. If you don’t have any credit history, you may need to take further steps to personally verify your identity. All of this will be guided by the application procedure.
Is the Self Credit Builder Right for Me?
This personal credit builder assessment can assist you in determining whether or not it is appropriate for your financial condition. Many people who are trying to avoid debt or live a more basic lifestyle will appreciate the fact that their money is saved on a CD and will be returned to them.
This is more appealing than a pointless buy they didn’t want to begin with. There’s a reason Marie Kondo is so well-known: it smells to be surrounded by worthless items.
If you want to utilize a Self account as an emergency fund or in place of one, it’s not a good idea. Funds aren’t available right away, so if you need money right away for an emergency, you’d be better off building a savings account first.
Customers have left great Self credit builder reviews online, which may make some hesitant, but I’m a big fan and trust the reviews. I honestly believe Self is a financial product looking to help others after meeting with them numerous times over the past year, including once at FinCon.
They acknowledge that persons with bad credit are taken advantage of. As a result, they are attempting to completely transform the banking business. This idea of prioritizing people over business strikes a chord with me. It gives me the impression that I am more than a number at a large corporation.
A reminder of why improving your credit score is so important
Remember this when it comes to boosting your credit: your credit score is the most critical weapon you have when it comes to your financial health.
Because your credit record can be used by anybody from a landlord to an employer to deny you opportunities, the determining factor is completely based on your past financial blunders as reflected in your report.
What a poor credit score means
Subprime financial products and services are available to you if you don’t have a good credit score. You’ll have to pay thousands of dollars in fees and interest for these items and services. Because you have few options, banks will take advantage of your poor credit score. As a result, they will have more money.
You may not be able to open an account with that financial institution, let alone qualify for financing from many others, if your score is low enough. This is one of the reasons why vehicle lots that advertise “Buy Here, Finance Here!” are so popular. Another reason for the rise of payday loans and check-cashing businesses with high costs is because of this.
It isn’t only about having less-than-ideal financing options for significant life expenditures like a home or a car. Even if you aren’t seeking to buy, a poor credit score can cost you housing. Many landlords now conduct background checks that include your credit report and score.
If you’re a financial liability, someone else may be able to step in and take your place simply because they’ve shown they can pay their payments on time. Isn’t it painful?
It doesn’t end there, though. You may be asked to pay a large deposit up front by utility companies. This is mostly due to apprehension that you may fail to pay a debt when it is due. The point is that your credit score matters more than you might believe.
While many of us may require credit repair or even building, all hope is not lost. In terms of how simple it is to repair your credit, there are numerous tools and options available. One of the companies that is leading the way is Self.
Summary of Self Credit Builder Reviews
I hope my personal Self credit builder reviews can assist you in determining whether or not it is right for you. The self credit builder may be a good option for you if you’re wanting to develop or rebuild your credit.
It may be a tool to help you reach the credit score you deserve, with a variety of plans to match all budgets, access to FDIC-backed institutions (see FDIC disclaimer in footer), and a simple online platform.