How does a Self Credit Builder Secured work?

Self Credit Builder Secured guarantees the combination of different loan and card accounts that have been specially created to increase the credit score of its users, being much more than just a credit card.

In other words, it works like a combo. This means that before you have a credit card, you start with a Self Credit Builder loan. That is, you take some money from your savings account and deposit it into your account, as if it were a loan. Monthly payments are required until you finish paying the full amount and gain access to your account.

One of the main advantages of this method is that you get all your money back, except for the interest and management fees. In addition, your history is reported to the three major credit bureaus, improving your score.

After a period of three months of making the payment correctly, you become eligible for a Self Credit Builder guaranteed credit card. By requesting it, you can rest assured that the company does not carry out any type of credit check, avoiding harming your history.

Your credit limit will be based on the amount that you have in your Self Credit Builder account. So if you make higher deposits, you can get a higher safe limit. If you continue to make deposits and payments on a monthly basis, you may be able to request to increase your limit even further after some time.

In addition, combining a credit card with a loan account allows your credit score to rise even faster, building up a credit history and getting better and better service.

Is there a welcome offer?

It’s not common to find welcome offers on secure credit cards. Even though Self Credit Builder doesn’t have one, it’s still an excellent option as it allows you to increase your credit score faster than others, allowing you to elect credit cards with better deals.

More about the Self company

Although the company Self Lender has been active for a few years, it was only after the launch of the company’s app that it gained more popularity, due to its functions and practicality, enabling responsible use of credit cards.

The Self Credit Builder account is your most relevant service and the one that allows you to use your credit card. You can choose between some options when opening your account, as you can see below:

• 24 months of payment with $25 payments that result in a $520 payout;
• $35 a month payments for 24 months that result in a $724 payout;
• 12 months of payment with $48 payments that result in a $539 payout;
• $150 a month payments for 12 months that result in a $1663 payout.

Throughout the entire payment period, Self reports all information to TransUnion, Equifax and Experian, allowing you to build your credit history over time.

Main benefits for Self Credit Builder Secured

This credit card is mainly for people who want to build their credit history without the need for a credit check, as there is not much more it can offer you.

The credit card does not offer any type of reward program, cashback or attention-grabbing introductory APR offers. But, as stated earlier, its purpose is just to allow people to build a credit history.

Among some of the advantages of Self Credit Builder Secured we can highlight:

• Excellent credit combo combined with account.
• It does not require a security deposit, instead a loan is taken.
• $0 Fraud Liability Protection;
• This credit card is accepted throughout the US;
• It is possible to make automatic payment through the application, avoiding delays and interest.

Main cons for this credit card

Just like every credit card, Self Credit Builder Secured has its cons. Aside from the lack of reward programs, cashback or introductory APR offers as mentioned above, if you’re not a person in control of your spending, the loan and credit card combination can be dangerous.

If you lose track of both and fail to make the payments, interest will accumulate, making choosing Self Credit Builder Secured much more expensive and preventing you from building your credit history.

Rates and fees for this credit card

When applying for this credit card, it is important to be aware of the fees charged. See which ones below:

• $9 administration fee;
• 15,97% variable APR;
• $125 finance charge.

The good news is that you simply pay your balance in full each month and you are free to pay all these fees. The only fee that will affect your credit limit will be the $9 annual fee.

As the Self Credit Builder Secured Card is intended for people with a low credit score, anyone can be eligible for it, without the need for a credit check.