Is Self legit?

Self was founded in 2014 and specializes in improving customer credit scores. The company is currently based in Austin, Texas.

Thus, Self is a financial technology company that empowers people to build credit. Self partners with financial institutions (approved by the FDIC) that maintain a credit-builder account. It is important to note that Self is a legal company and also a partner of a Minnesota-based bank, Sunrise bank, Missouri-based bank, and Lead bank.

You will be glad to know that the company's services can be used in any of the 50 states. For the first 4 years of operation, Self-set up and services credit builder accounts for 120,000 people. However, it is worth remembering that the company's services are available to customers who want to build their credit, not business credit. Also, the advantage of the company is that it does not require any security deposit.

Self Loan application and requirements

If you want to use Self's services, you must know how it works, how to apply for a loan or credit card, and what are the eligibility criteria to be approved.

The company works by creating a loan that you practically pay yourself, and after the payment is made, all the money belongs to you. In order to better understand the work of the company, you need to know what a credit builder loan is.

A credit builder loan (a credit-builder account) is a small loan that you receive in your own name. However, it is worth knowing that the company does not pay the money directly to you, instead, it keeps it as a secured loan by placing it on a certificate of deposit. This certificate is valid for a certain period of time, after which you will be able to withdraw money with additional interest. After you pay off the original loan within the agreed period of time (usually 12 or 24 months), they will return the money to you.

The advantage of a credit bank loan is that every time you make your monthly payments on time, it is reported to all three credit bureaus, thus improving your credit score. In other words, you will be restoring the loan without the need to take out a new loan from the bank, since you will have a small secured loan that you presented to yourself. This is a rather unique solution that has helped a huge number of people to improve their credit.

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How does Self work?

  1. To get started, you need to submit an online application by filling out a simple form. After Self approves it, the loan amount will be deposited on the certificate of deposit (in one of Self's partner banks). Next, you will need to make regular timely payments throughout the loan term.
  2. Once you have made all payments on the loan, you will be able to receive your money (minus the administrative fee and interest rates).
  3. As already stated, you can get 12 and 24 months repayment terms depending on your desired monthly payment. According to your ability to repay the loan, you can pay $ 25 (the lowest payment), $ 35, 48, or $ 150 per month. As mentioned, you will also have to pay a nonrefundable administrative fee of $ 9 and interest rates that do not exceed 16%.
  4. Since Self reports your payments to all 3 credit bureaus, it is important to make payments on time. While timely payments will improve your credit, missed payments will negatively impact it.
  5. As you pay off your debt, you will be able to track the progress of your credit rating using free credit monitoring. It is also very important to make sure that you have chosen a convenient payment amount. You should know that a larger loan will not help you get extra points faster, so make sure you can afford the repayment of loan payments you have chosen.

How to apply for a Self loan?

In order to receive a loan, you need to meet certain eligibility requirements of this company. Remember that the loan application must be submitted online. So, in order to be approved:

  • You must be at least 18 years old
  • You must be a US citizen or an official resident
  • You must have a bank account or debit card
  • You must provide a social security number
  • You must provide contact details (phone and email)

As you can see, there are not many requirements that you need to meet in order to qualify. This way you can easily get a loan and improve your credit.

How much does the Self credit-builder account cost?

As already mentioned, to work with Self, you must pay a one-time non refundable administrative fee of $ 9. You will be glad to know that the APR is much lower than that of other lenders. Moreover, Self does not charge an early repayment fee, so you can reduce your interest by paying the loan in advance. Interest rates usually do not exceed 16 percent.

What are Self loan fees and penalties?

In addition to the $ 9 administrative fee, there is also a late payment fee. Thus, if you are 15 days late with the payment, you will pay a fee of 5% of the monthly payment. If you are 30 days late on payment, then this will be reported to the credit bureaus, which will undoubtedly worsen your credit score. Also, in case of longer non-payment, your account may be closed and this will also damage your credit history. So please pay attention to this point in order to avoid unwanted problems.

The Self Visa credit card

Besides the loan, Self also has a credit card which is another tool for building good credit. This card is a secured portion of your savings progress. The credit card APR is 23.99% and it can vary depending on the market and the prime rate.

What requirements do you need to meet to open a Self Visa Credit Card?

In order to open such a credit card, you need to have an open credit builder account, have an account in a good standing and the last 3 payments must be made on time. Also, to receive a card, you must have made at least $ 100 worth of your loan payments.

How to open a Self Visa credit Card?

Opening a credit card won't be a big deal for you. You will not need to go through a credit check due to the fact that you already have the credit builder account with Self. You will be able to set a limit for your credit card based on your savings process in your credit builder account. Since the savings process sets your limit and secures your card, there is no need to pay extra money upfront.

To receive a card, you will need to provide your address so that it can be sent to the desired location. As soon as you receive the card, you will need to activate it. It is important to know that this credit card will be accepted wherever Visa is accepted in the United States.

This credit card has an annual fee of $ 25. Please note that this amount will be substracted from the money on your deposit (when you get the card). So if your secured credit card is opened with a minimum of $ 100, then it is worth remembering that your credit limit will be only $ 75. However, you can always choose a larger deposit, which will increase your credit limit.

Thus, you get two types of loans. One is revolving credit (your credit card) and the other is installment (this is your loan). By using both of them, you will be able to build your loan faster.

IMPORTANT! Even though you can get the card without a credit check, payment details will also be reported to three credit bureaus. Thus, you can both worsen and improve your credit history.

Bottom line

If you are looking to build your credit score, then Self is an excellent option for you as it provides you with two types of loans. By using both of them, you will be able to quickly build good credit and get good interest rates in the future. However, remember that you need to make payments on time as Self reports the payment information to the credit bureaus. Thus, you can both worsen and improve your credit score. Remember that in case of a late payment, you will have to pay an additional commission. However, Self does not charge any early repayment fees. So, using Self you can quickly build the loan you have always wanted.