Self Credit Builder Secured Visa

Anyone who barely has a credit history will find difficulty to get access to services and credit cards at competitive interest rates. There’s a simple reason: banks and financial providers use your history to determine if you’re a liability. Anyone who doesn’t have a long history or has a bad payment record will come across problems when hiring loans, credit cards and even insurance. 

That’s why a credit building credit card is so important. For those new to credit, it allows them to get started on the right foot with timely payments and reporting to all three American bureaus. For anyone who has a bad history, it allows them to create new and better records and raise numbers quickly. 

Self Credit Builder Secured goes beyond the credit card, though. It offers a combo of loan accounts and cards that were created to help raise credit scores all over the US. If you were waiting for a chance to give your score a boost, this might be it. Keep reading to understand how this credit card works, main benefits and how to get a better score using it. 

How does a Self Credit Builder Secured work? 

Self Credit Builder Secured is actually a combo. You won’t start off right away with the credit card, but actually a Self Credit Builder loan. In a very quick summary, you get some money from your savings and deposit it into your account as a type of loan. 

You have to make payments monthly until you finish paying the complete amount and get access to your account. The main advantage here is that you get all of the money back, minus interest and management fees. Self reports your data to the three major bureaus to get your credit history improved. 

After three months of adequate payment, you’ll be eligible for a Self Credit Builder Secured Card. The best part is that the financial company won’t do a hard credit check on your history, which would stop your improvements on their tracks. 

Your line of credit will start according to how much you have on your Self Credit Builder account. This gives you the possibility of getting a better secured limit through higher deposits. You might even be eligible for a higher unsecured amount through proper monthly payments over time, but there’s no guarantee or time period for this limit review. 

Another advantage here is that you’ll add a better credit mix to your history. After all, you’ll be juggling both a personal loan account and secured credit card, which is great for your score. 

Is there a welcome offer?

Secured credit cards with welcome offers are quite rare. Self Credit Builder Secured doesn’t have one, but it more than makes up for that with quick improvement on your credit score. Over the months you might even become eligible for cards with better offers.

Understand the Self company

Before 2019 you might have heard of Self as the Self Lender company. While its products didn’t really change, its credit card option became a lot more robust with its mobile app to keep a responsible use. 

Self Credit Builder account is its most important product, and also the one that allows you to get this credit card. There are a few options you can choose from: 

• 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.

While you pay, Self reports everything to TransUnion, Equifax and Experian, building your credit history along the way. 

Main benefits for Self Credit Builder Secured

Other than being able to build your credit history without the need for a hard credit check, there isn’t much to this card. You’ll see that there aren’t any reward programs or intro APR offers that make it very attractive. However, as we mentioned above, this is especially for people whose scores make them ineligible for other card options. 

Some highlights you should know about include: 

• Better credit mix combining loan account and credit card; 
• No security deposit required for the credit card (your loan account serves in its stead); 
• $0 liability protection in case of fraud; 
• Credit card accepted all over the US; 
• Autopay through the app. 

Everything here has the main purpose of allowing you to get your finances on track. This Visa credit card can be set on autopay so you won’t miss a due date. Even if that happens, there’s a grace period with no interest rates. But be careful, since you’ll have to pay a fee plus interest if that time is over. 

Cons for this credit card

If you aren’t great at keeping your spending in check, the combo of loan account and credit card is dangerous. It is possible to accumulate interest from both of them after missing your payments, which can make this choice a lot more expensive. 

Rates and fees for this credit card

When you decide to start building your credit with this card you should watch out for the fees. They include: 

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

The good part is that you can keep away from most fees and charges for this credit card as long as you pay your balance in full monthly. Only the $9 annual fee will impact your credit limit. 

Anyone can get approved for this offer. Since this is a secured credit card, there won’t be a credit check at all when you get started.

How to Request

To apply for the Self Credit Builder Secured Card, follow these steps:

1. Visit the Self Website

• Go to the Self website.

2. Create a Self Account

• If you don’t already have an account, you’ll need to sign up for a Self Credit Builder account. This involves choosing a credit builder loan plan that fits your budget. Options typically include different loan amounts and payment terms.

3. Select a Credit Builder Loan Plan

• Choose one of the available credit builder loan options. The amount you deposit into the secured account will determine your future credit limit on the secured card.

4. Complete the Application

• Provide personal information such as your name, address, Social Security number, and other required details.
• Choose your preferred payment plan for the credit builder loan.

5. Deposit Funds

• Deposit the chosen amount into the secured account. This amount will be used as collateral for your credit builder loan and will determine your future credit limit on the secured card.

6. Make Timely Payments

• Make monthly payments according to your chosen plan. After three months of consistent payments, you will become eligible for the Self Credit Builder Secured Card.

7. Apply for the Secured Card

• Once you’ve met the eligibility criteria (usually three months of timely payments on your credit builder loan), you can apply for the secured credit card.
• The card application will be processed without a hard credit check, and you will receive your card based on the balance in your credit builder account.

8. Use and Monitor

• Once approved, use the secured credit card responsibly. Regular payments and prudent use of the card will help improve your credit score.
• You can manage your credit card and loan through the Self mobile app or online account portal.

Additional Tips

• Check Your Eligibility: Ensure you meet the basic requirements for the credit builder loan before applying.
• Read Terms and Conditions: Review the terms, fees, and interest rates associated with the credit builder loan and the secured credit card.
• Contact Support: If you have any questions during the application process, reach out to Self’s customer support for assistance.

This approach provides a structured way to build or improve your credit score while offering flexibility in managing your payments.

Conclusion

The Self Credit Builder Secured Card is a valuable tool for those looking to establish or improve their credit profile. While it does not offer rewards or promotional APR rates, its primary strength lies in providing a structured path to building credit. If you’re committed to making timely payments and managing your credit responsibly, this card can be an effective way to enhance your credit history and open doors to better financial opportunities in the future.