Self Credit Builder Loans (formerly Self Lender) helps you take control of your credit score, regardless of your situation. And while their services are helpful to everybody, they are a particularly powerful service for people who are new to credit building or might not have access to traditional financial products.
They offer a Credit Builder Account, which is an installment loan that enables you to build positive payment history (assuming you make their monthly payments on time).
Credit Builder Accounts to Build Credit
Before Self Credit Builder Loans (formerly Self Lender) existed, these loans were only available in certain geographic areas through a limited number of local community organizations, community banks and credit unions. Self Lender is the first company to offer a credit builder loan, or a Credit Builder Account. These financial products, technically known as Savings-Secured Loans or Certificate of Deposit (CD)-Secured Loans, have helped many people establish credit history in a safe and responsible manner. Self Lender’s process is simple. They make it easy to apply for their services and you can manage your payments online or via mobile app in all fifty states.
Self Lender: How it Works
Signing up with Self Lender is free. You will need a bank account or debit/prepaid card, a valid email address, phone number and a valid social security number. After signing up you can apply for a loan with one of their bank partners. They offer four Credit Builder Account options: $25, $48, $89 or $150 in monthly repayments. Depending on your repayment schedule, the Credit Builder Account will last for either 12 months or 24 months. Although they do not have a minimum income requirement, you are encouraged to pick a payment plan that best fits your budget.
The loan does not require you to make a large deposit up front. However, you will need to wait until you’ve paid off your loan to access the funds. This helps with building your credit as well with saving money!
On your Self Credit Builder Loans (formerly Self Lender) dashboard, you can access your account balance and repayment schedule, download your account documents, or check your credit score at any point. Payment history is responsible for 35% of your FICO score — which it’s imperative to always make on-time payments. Therefore, you should choose the amount that you will be able to consistently repay and then always make your payments on time. They offer an auto-pay feature to make your monthly payments turnkey and easy. You can process payments using a bank account, which is free. However, if you choose to use a debit card, you will incur a convenience fee of $0.30 + 2.99%.
The Self Credit Builder Loans (formerly Self Lender) Process, Step by Step
- You can apply for a Credit Builder Account that’s held by one of their bank partners. To apply, you must be a permanent U.S. resident or U.S. citizen with a physical address in the U.S. and be at least 18 years of age.
- Self Lender bank partner lends you a small loan. The bank will hold onto the money until the loan is paid in full. Your money is secured and protected in a bank account. All loan funds are held in a Certificate of Deposit (CD) that is FDIC-insured in your name.
- Pay off the loan in 12-24 months. You can choose a repayment plan that fits your budget.
- Each payment builds credit history and adds to your savings. Each month, your payment history is reported to the three major credit bureaus, Experian, Equifax and TransUnion. Payment history = 35% of your FICO credit score.
- Once you’ve paid off your loan, your CD matures and unlocks. The principal amount you put in (minus the interest paid on the loan) unlocks and comes back to you.
- Self Lender can be an amazing partner in helping you build up your credit score.
As an add-in, Self Credit Builder Loans (formerly Self Lender) offers a Platinum Protection feature for $5 per month. It includes $1 million identity theft insurance and protection, expedited customer support (up to 3x faster) and up $15 off on your next Credit Builder Account
Self Credit Builder Loans (formerly Self Lender) Pricing
- Opening a Self Lender account is free
- Get your credit score monthly – at no cost
- Four Credit Builder Account options: $25, $48, $89 or $150 in monthly repayments. Depending on your repayment schedule, the Credit Builder Account will last for either 12 months or 24 months
- When your loan is approved you pay a one-time, non-refundable administrative fee
- Linking your bank account is free. Using a debit card has a convenience fee of $0.30 + 2.99%.
- Self Lender Platinum Protection add-in costs $5 per month. You can this cancel at any time.
Ease of Registration
Most people can join Self Lender in less than five minutes. If you do not have a credit history, it could take a little longer since they must verify your identity.
Self Lender is the first company to offer a credit builder loan or a Credit Builder Account. They make easy to apply, pay and build your credit online or via mobile app in all USA fifty states.