Self Lender’s Savings Loan

Build or Repair Credit While Creating a Savings Nest Egg

Eligibility Requirements

  • be a U.S. Citizen or permanent resident

  • at least 18 years old

  • have a valid bank account or debit card

  • Social Security Number

  • Available to anyone in the 50 states

How it works

When you apply for Credit Builder Loan Self, they don’t send the money to you. Instead, Self places the loan in a certificate of deposit (CD) in your name, and every month you make a loan payment to Self; Self then reports your payment to all three credit bureaus. Once the loan is paid off, in 12 to 24 months, the CD is closed and a check for the full amount, minus interest accrued, is sent back to you. You can choose from four options: $25, $35, $48, or $150* and determine the term of the loan (12 or 24 months) so that it fits with your budget and credit building goals. Normally, Self, also charges a $9 administration fee. Yet, the interest on the loan does end up going to Self instead of you. But by COURTESY OF FINEQUITY, this fee is waived. . Prior Self users have reported score increase of 32 points There are many options for how much you save per month. But you have to pick one option and keep that amount each month. For example, Save $25 month for 24 months ( $520 loan ). See the picture of different options.

Recap:

  • You don’t need money upfront to get the loan, though you do need to be able to afford the monthly payments.

  • You cannot access the money you deposit until the loan is paid off in full at the end of your term. With a secured card, you can use up to your credit limit anytime — though doing so will increase your credit utilization and hurt your credit until the balance is low again.

Reasons to say YES

  • Set-up automated payments with a 2 year credit building opportunity: Create an easy way to build credit for 2 years with just one account - You are willing to part with $520 for 24 months in exchange for 2 years of positive payment history. Through using their service, they will automatically take the funds from your account. Meaning you can set-up and just live your life and build credit.

  • Access to a Secured Credit Card with good terms: Self has a credit card that you can get access to IF you use their credit building loan (the APR on the secured card is also high at 23.99%).. BUT FINEQUITY will like to make sure you have other credit card opportunities.

  • They report to a 3 credit bureaus

  • After the term is finished, you will have successfully gained an emergency savings fund

Reasons to say NO

  • Debit Card use fee : Extra fee for making monthly payments with a debit card.

  • Finance Charge: Self makes a profit of your loan on anywhere between $37 to $137 off of your use of their services. Before opting for Self, talk to FINEQUITY to see if there are cheaper ways to get to your goal. IF there are not, feel free to opt for Self.

  • APR Rate: When make your monthly payment to Self, they put it in an interest-bearing savings account. So, your money is basically growing over time. However, there is a APR rate of between 12 and 14% that Self charges. In sum, you will get back less money than you put in. For example, on the $25 a month plan, you will end up saving $600 but will only get back $520 dollars.

  • Late fees: Payments 15 days late or more incur a fee of 5% of the scheduled monthly payment. Payments that are 30 days or more past the due date will be reported to the credit bureaus, likely damaging your score. If the account continues to be late, it will eventually be closed and the loan will be reported as "defaulted" on your credit reports. You get the loan deposit amount, minus the fees and amount you owed when the account closed. A default also damages your credit.

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