What You Need to Know About Your Self Credit Builder Account (2024)

Whether we understand it or not, credit affects our lives, and finding ways to build credit responsibly can be difficult. While I wasn’t a credit expert before I started at Self, I now have the pleasure to work with our customers every day to help them make sense of how credit – and our product – works.

Here’s what I’ve learned after working with our customers, and what you need to know before signing up for Self.

In this article

  • What applying for a Self Credit Builder Account looks like
  • Is the Self Credit Builder Account right for you?
  • Things to keep in mind when it comes to your Self account
  • What to know about paying your Credit Builder Account
  • What to do when you complete your Credit Builder Account
  • Infographic: what to expect from your Credit Builder Account

Applying for a Credit Builder Account

Since Self is web-based, you can complete your application and manage your account online or through our mobile app on either Android or Apple devices.

Here’s a short overview of how the application works:

  1. Register with Self and enter your personal information to verify your identity and apply for the Credit Builder Account.
  2. Choose which option is best for you based on the monthly payment, loan size and length of loan term. We advise our customers to choose the monthly payment option they are most comfortable with.
  3. We’ll then verify your identity. Please note - if you don’t currently have a credit history, there may be a few extra steps involved to verify your identity.
  4. Review all documents associated with the account and agree to the terms.
  5. Add a valid payment method (personal debit card or checking account) and choose whether you want to enroll in AutoPay.
  6. Agree to the provided terms and submit the non-refundable administrative fee to open the Credit Builder Account. This fee ranges depending on which option you select. The account will not open until this step is complete.

In an effort to limit any imposition on your credit, we do not perform a hard inquiry when applying. Instead, we submit a soft credit check to verify your information and identity – but this will not affect your credit.

We do not determine your eligibility based on your current credit score.

Is the Credit Builder Account right for you?

It can be difficult to find options to build credit, particularly with a low credit score. Most loans and credit cards require a well-established credit profile or a minimum credit score to participate. Self was established with the understanding that life happens and we all experience our own journey.

The Credit Builder Account is designed to assist people with either no credit history or those who are looking to rebuild their credit. One way to get on the right track is to establish new, positive credit history.

Many major life decisions are contingent upon your credit health. Most lenders use your credit score to determine creditworthiness. If you want to purchase a home or vehicle, or even need a loan to pay for unexpected hardships, your credit score will likely play a role.

Even renting an apartment may require a credit check. It will determine your eligibility for certain financing options and affect the terms of repayment, including the amount of interest you’ll pay.

The Self Credit Builder Account offers a way to establish new credit history. By completing the program, you can show your ability to make payments on time and build a foundation for future credit endeavors. We want you to be ready for whatever life brings your way.

Unfortunately, it is difficult to establish credit if you don’t already have it or have made mistakes in the past. Improving your credit situation can be an uphill battle. Self was founded on the belief you should have the tools you need to move forward and live your best life – no matter your history. We all deserve a chance, even a second chance. If you’ve tried unsuccessfully to apply for credit in the past, the Credit Builder Account may be an option that could allow you to “graduate” to other forms of credit.

The Credit Builder Account also provides a way to build savings while you build credit. It’s not a secret that saving money for a rainy day provides a wealth of benefits, but in today’s society it’s increasingly difficult to do so.

Once you complete the program, the principal funds are sent back to you (minus interest). Our customers often place the money they save into a savings account, use it for a deposit to obtain a secured credit card or even to take their family on vacation.

"Building credit while saving? You can't beat that." - Shanice S.

Things to keep in mind

Here are some things that frequently come up in conversations with customers:

Administrative fee
The administrative fee you pay when opening the account is non-refundable – even if you change your mind and close the account.

Paying early
Payment history, which counts for 35% of your FICO credit score, is established by submitting all of your monthly payments on time. Paying off the loan early will limit the benefit.

Changing account terms
Once you agree to the terms and open the account, the terms are locked in and cannot be changed. If you want to change your payment amount, you can close the account and apply for a new Credit Builder Account. Keep in mind though, this will result in a new administrative fee.

User experience
For the best experience navigating our site, avoid using outdated web browsers such as Internet Explorer. The network at your workplace may also hinder your experience, as most employers use firewalls that interfere with our secure site.

Due date
Your due date is determined by the day of the month you sign up. If you open the Credit Builder Account on the first day of the month, your monthly payments will be due on the first of each month moving forward. If a specific due date is a priority, you can designate the date by applying on the day you want those payments to be due.

Updating your personal information
You can update your address, email and phone number within your account. This functionality is not currently available on the app, but can be updated by logging into your Self account. You can update your payment methods on the website or in the mobile app. We do not have the capability of updating this information for you over the phone.

Late payments
There is a 15-day period before a late fee is assessed on your account and payments will not be reported as late to the credit bureaus until they are 30 days overdue. We understand that life can get in the way, so we want to offer as much flexibility as possible so you can make your payments before those deadlines.

Reporting to the credit bureaus
We are required by law to report factually on all of our accounts. It’s up to you to make sure you make your payments on time to avoid derogatory reporting. Reporting occurs once a month, starting after your first due date.

Cancellation
If you experience hardship or feel you may not be able to pay future payments you can close your Self account at any time. As long as you reach out before your payment is 30 days past due, we can report the account as completed and paid in full, just as we would if you completed the full term.

Paying off your Credit Builder Account

You can make payments on your Credit Builder Account a few ways. We accept personal debit cards and checking accounts for payments. You can take advantage of our AutoPay feature to automatically submit your payment on any day, on or before the due date.

If you need more time to submit a payment, you can disable AutoPay and log in on a later date to make a payment manually. There are a few differences between the accepted payment methods. Be sure to choose the option that works best for you.

Debit cards

Debit card payments are processed immediately once they are submitted. Please note, when using a debit card, you will incur an expedited payment fee. In order to avoid a convenience fee, please link a bank account.

Checking accounts

ACH transactions generally take 2-4 business days to process. This is not unique to us, and is common across the financial services industry. Payments will appear on your bank statement during this period. There is no fee for this type of payment, but if the payment fails we do assess a failed payment fee.

Paying off your loan early

Many people want to pay off the Credit Builder Account early in the hopes that it can build credit more quickly. While you can absolutely pay off the account early and receive your savings sooner than scheduled, paying your account sooner does not help you build credit faster.

In fact, paying off the account early will limit the benefit of the Credit Builder Account. The purpose of the account is to build payment history by showing you can make each monthly payment on time. If you close the account early, you limit the amount of payment history you can build. For the best results, simply make your payments each month until the scheduled maturity date.

Remember, you don’t have to pay off your loan early in order to close the account either. You are welcome to cancel your account at any time, as long as you haven’t accrued any late fees you need to pay off first.

You completed your Credit Builder Account. What now?

Once you reach your maturity date and the account is paid in full, the account will close automatically and we’ll process your payout. However, we do require seven business days to close the accounts and allow all funds to settle. This processing period is required for all closed accounts. We cannot release the funds immediately after the account closes.

Once the payout has been processed, we’ll send a check to the address on file or deposit the money into an eligible checking account. Our customers generally receive the payout up to 3 weeks after the account is closed.

"Self has been a fabulous service for me, as I have started building my credit history. I jumped 30 points over the period of my account, and I just got my savings I built deposited into my bank account! I've already signed up for a second account, because it's guaranteed savings that boosts your credit score! Thank you for making it easier for millennials without established history to become more creditworthy!" - Evan John Miller-Nee, Self member

Once they complete their first Credit Builder Account, many of our customers will open another one. We welcome you to continue building your credit history and saving money with a new account. While we can only allow one active Credit Builder Account per customer at a time, you are free to participate as many times in a row as needed to achieve your goals.

Alternatively, many of our customers find the opportunity to “graduate” to other products such as a secured credit card or various other installment loans. The Credit Builder Account may serve as a stepping stone for future credit needs.

Bottom Line

At the end of the day, whether a Credit Builder Account is the right choice for you, or you find success with a different credit building product, we wish you the best with your credit building journey.

What to expect from your Credit Builder Account

What You Need to Know About Your Self Credit Builder Account (1)

About the author

David Gasch is a writer and IT Support Specialist at Self. He has a background in communications and media production. When he's not helping people build credit or helping customers, David enjoys hiking, cooking and exploring Austin. See David's profile on LinkedIn.

What You Need to Know About Your Self Credit Builder Account (2024)

FAQs

What are the downsides of self credit builder? ›

  • All plans require a non-refundable administration fee.
  • Can't access your money until the end of the term.
  • Late payments are also reported to credit bureaus, which could damage your credit.
  • APR is somewhat high compared to some credit-builder accounts.
  • You may not be able to keep the interest earned on your CD.
Apr 11, 2024

Do you get all your money back from self credit builder? ›

Note, once you finish paying off your credit builder loan, Self will send you your money back, minus any fees and interest. While there is a $100 minimum, you are in control of how much credit you have available based on the amount of money you move from your Credit Builder account to your Self Visa® Credit Card.

What is a self credit builder account? ›

The Self Credit Builder Account* — a fixed installment loan that exists solely for the purpose of establishing your credit history. The Self Secured Visa credit card —a secured credit card that can be used anywhere in the U.S. where Visa cards are accepted. It will also help you to boost your credit score.

How much does self credit builder raise your credit score? ›

On average, consumers see a 32-point increase in their credit score from the Self Credit Builder Account. But the change in your credit score may be more or less significant. It depends on your credit profile, credit history, how long you keep the Credit Builder Account open and if you make timely payments.

What is the highest credit limit on self credit card? ›

As you make payments on your Credit Builder Account each month, you can choose to increase your credit limit up to a maximum limit of $3,000.

How fast does self improve credit? ›

Self reports your payments to the three major credit bureaus, Equifax, Experian and TransUnion. Any late payments will hurt the credit you are trying to build. After about six months, your repayment activity should generate a FICO score if you didn't already have one; your VantageScore can be generated sooner.

Is self good for rebuilding credit? ›

The results of your Self credit builder will vary, but you will likely see a boost in your credit score as you add positive payment history information to your credit report. You will also add an installment loan onto your credit report, which can help if you only have revolving credit accounts like credit cards.

How long does it take for self to pay out? ›

You do not receive funds until after your loan matures and/or after all loan payments have been completed. Please note - once an account has been completed, funds will typically arrive within 10-14 business days via either check or direct deposit, depending on the payout method you selected.

Can I pay my self loan off early? ›

You must start repaying your SELF Loan no later than nine years from when you received the money. There are no grace periods or deferment options. SELF Loans cannot be included in a federal government loan consolidation. There is no penalty for early payment.

How much money do you get with self credit builder? ›

Small Builder: Pay $25 per month for 24 months and receive $520 back. The annual percentage rate (APR) is 15.92 percent, and the total cost of the loan is $89. Medium Builder: Pay $35 per month for 24 months and receive $724 back. The annual percentage rate is 15.97 percent, and the total cost of the loan is $125.

How many times can you use self credit builder? ›

At any given time, you can only have one active Credit Builder Account. After you've successfully completed one Credit Builder Account, you are welcome to re-apply for another account, with a few exceptions.

How fast can I add 100 points to my credit score? ›

Here are 10 ways to increase your credit score by 100 points - most often this can be done within 45 days.
  • Check your credit report. ...
  • Pay your bills on time. ...
  • Pay off any collections. ...
  • Get caught up on past-due bills. ...
  • Keep balances low on your credit cards. ...
  • Pay off debt rather than continually transferring it.

How fast can my credit score go up 100 points? ›

In fact, some consumers may even see their credit scores rise as much as 100 points in 30 days. Steps you can take to raise your credit score quickly include: Lower your credit utilization rate. Ask for late payment forgiveness.

How to increase credit score by 100 points in 30 days? ›

  1. Pay credit card balances strategically.
  2. Ask for higher credit limits.
  3. Become an authorized user.
  4. Pay bills on time.
  5. Dispute credit report errors.
  6. Deal with collections accounts.
  7. Use a secured credit card.
  8. Get credit for rent and utility payments.
Mar 26, 2024

How reliable is self credit builder? ›

Yes, Self credit builder and its services are legitimate. It's one of the few services of this type available nationwide.

Is self a good way to build credit? ›

Self reports on-time payments to the three major consumer credit bureaus, Equifax, Experian and TransUnion, which makes its credit-builder loan a good way to build credit — as long as you make payments on time and in full.

Will closing my self credit builder account hurt my credit? ›

If you close your Credit Builder Account in good standing, then it will no longer report payment history to the credit bureaus monthly. While we can't speculate on the exact impact of closing a Credit Builder Account on your credit score, payment history is the most important factor in determining your credit score.

Why did self credit builder lower my credit score? ›

But there are a few reasons your credit score may drop when you first open your Self Credit Builder Account. First, it could be that the Credit Builder Account with the full balance due has reported to the credit bureaus, but your first payment (which reduces the total balance) has not reported yet.

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