Credit invisibility can be a negative feedback loop: You can't get a loan because you don't have credit, but you can't build credit because you can't get approved.
Enter the credit-builder loan, in which you pay off the entire loan before you get your money. This structure protects lenders from risk, so they can accept people with bad or no credit, and borrowers' payments still get reported to credit bureaus to improve credit scores.
Large banks don't offer credit builder loans, so borrowers usually have to look at regional options, like a local credit union or a lender like Self.
Business Insider's personal finance team compared Self Credit Builder Account to the best credit-builder loans and found it to be an industry leader, largely because it is one of the few available nationwide, and also because of its Self Visa Credit Card.
Self Credit Builder Overview
Self, an Austin, Texas-based company founded in 2014, is an online lender offering credit-builder loans that help customers with little or no credit build up their payment history. Self claims that the average customer raises their credit score by 49 points.
Self Credit Builder Account formerly Self Lender, is one of the few credit-builder loans available in all 50 states. Self offers four payment plans that cost $25 to $150 monthly, all of which take 24 months to complete. Self doesn't perform a hard credit inquiry, and it reports to all three credit bureaus, but that's the bare minimum for a loan designed to build credit.
Self's biggest draw is its Self Visa® Credit Card.
On the other hand, Self's relatively high APRs from 15.51% to 15.92% make it a tough sell.
Overall, Self is one of the more accessible credit-builder loans on the market. Still, it's worth your time to look at all options, particularly local options, for better rates and potentially more reliable service.
How Self Credit Builder Works
Self credit builder works by issuing a loan to be paid off over 24 months. As you make payments on time and in full, you will qualify for the Self Visa® Credit Card, and Self will report your payment activity to the credit bureaus as an installment loan.
When Self issues your loan instead of giving you the funds directly, it will put the money into a certificate of deposit (CD) where it earns interest. The interest isn't great enough to cancel out your APR, but it shaves some expenses off the top.
Self reports your payment activity to the credit bureaus as you make your monthly payments. Payment history makes up 35% of your FICO score and 40% of your VantageScore, so the ability to show bureaus that you can deliver timely payments can go a long way toward getting you on the right track credit-wise. The loan will also be reported as an installment loan, which can help add diversity to your credit accounts.
When you've paid off the loan, the CD will unlock, and the money you've paid will be returned, minus any unpaid fees and interest. Your money is usually returned within 10-14 days, but it may take up to 30 days for Self to return your funds.
Key Features of Self Credit Builder
Self's standout feature is its credit card, followed by its rent and utilities reporting.
You can qualify for the Self Visa® Credit Card when you've made three on-time payments and deposited at least $100. You can also qualify by making the deposit of $100, even if you do not have a Self credit builder account. The money you've deposited to pay off the loan secures your credit card and doubles as your credit limit. You can increase that credit limit as you continue to pay off your loan.
Self secured credit card has a $0 intro for the first year, then $25 annual fee and an APR that hovers around 28.24% Variable.
Self Rent and Utilities Reporting
While making payments toward your credit builder loan will help you build payment history, Self's rent and utilities reporting through LevelCredit will allow you to build credit using monthly expenses you're already making. The service is competitive with some of the best rent reporting services.
For no charge, Self's rent reporting service will report your rent payments to the three credit bureaus. You can opt into the paid plan for $6.95 monthly to add utility payments to your TransUnion credit report. Along with reported utility payments, paying users also receive $1 million in identity theft insurance and credit monitoring through TransUnion. Users can also add up to 24 months of prior rent payments at your current lease for a one-time $49.95 fee.
Users do not need to sign up for a Self Credit Builder Account to gain access to rent reporting.
Self App
Self has an app available on the Apple App Store and Google Play Store. The Self app allows users to manage their credit-building journey, track their VantageScore 3.0, and access other financial features.
15.51% to 15.92%
$25 to $150 monthly
N/A
$600 to $3,600
Pros
Cons
Self's credit builder loan is one of the few credit-builder loans available in all 50 states. Self offers four payment plans between $25 and $150 per month, all of which take 24 months to complete. Self doesn't perform a hard credit inquiry, and it reports to all three credit bureaus, but that's the bare minimum for a loan designed to build credit.
Self Credit Builder Account- No hard credit report pull
- Reports to all 3 bureaus
- Build credit AND savings
- Join over 1 million credit builders
- Unlock a Secured Credit Card after meeting eligibility criteria
- 24 months loan duration
Compare Self to Other Credit Builders
$0-$6.95 monthly + optional $49.95 fee for retroactive reporting
Pros
Cons
Self Rent Reporting reports your rent and other bills to the credit bureaus. This improves your payment history and as a result, your credit score, without needing to take on debt. One of the companies listed in our guide on the best rent reporting services, Self Rent Reporting stands out for offering several credit building perks under one competitive price.
Self Rent Reporting- Reports to all three credit bureaus
- Connects directly to your bank account
- Reports your rent, cell phone, electric, water and gas payments
- $49.95 optional fee for 24 months of retroactive rent and utilities reporting
- $6.95 per month
- Add two years of past payments
- Results vary. You may not receive an improved credit score. Not all lenders use scores impacted by rent/utility payments.
no monthly service fee
up to 4.00% bonus
$0
Pros
Cons
- Access to 40,000 fee-free Allpoint ATMs
- You may overdraw up to $200 from your account with no overdraft fees if you're eligible for Overdrive
- To be eligible for the Overdrive feature, you'll need to receive direct deposits $500 per month
- 3 Savings Pods: You may deposit up to $2,000 in each Savings Pod; Money that is kept in Savings Pods can earn 4.00% bonus
- Round-Ups: Debit card purchases are rounded up to the nearest dollar and the change is deposited into a Savings Pod
- Spending Insights: You can create a budget that keeps track of specific categories of spending; Spending Insights monitors how much you spend and can issue alerts if you are close to your limit
- Cash back: You can earn cash back at 14,000 select stores when you use your debit card; Points be redeemed at the Current Shop for cash
- Issued through Choice Financial Group (Member FDIC)
$0 intro for the first year, then $25
28.24% Variable
No credit and limited credit
Pros
Cons
Getting approved for a credit card can be challenging if you have a negative or non-existent credit history. The Self Visa® Credit Card offers an innovative solution that bypasses the traditional credit card application process, making it easier to get approved while also helping to build or repair your credit. However, getting the card involves several steps, as well as costs you wouldn't incur with other credit cards.
Self Visa® Credit Card- *$0 annual fee for the first year only. $25 annual fee after. 28.24% Variable APR. Limited time offer.
- To be eligible for the Self Secured Visa you first have to have an open Credit Builder Account, make three monthly payments on time, have at least $100 in savings progress and have your account be in good standing
- There are no hard credit checks
- Minimum credit limit is $100
- Minimum security deposit is $100
- Credit limit increased as you make monthly payments towards your Credit Builder Account
Self Credit Builder Pros and Cons
Self Credit Builder pros include flexible payment options, nationwide availability, and access to the Self Visa® Credit Card. Cons include relatively high APRs and non-refundable fees.
Self Credit Builder Pros
Payment flexibility
While Self offers four payment plans, it also doesn't penalize you for paying your loan off early or canceling your credit-builder account.
Wide availability
Self is available in all 50 states, which is rare for providers of these kinds of loans. Additionally, Self has relatively few requirements to qualify. Some lenders provide a credit-builder account with a wider paid subscription program. Other lenders will have specific region-based requirements. For Self, you just need:
- To be at least 18 years old
- To be a permanent U.S. resident
- To have a Social Security number
- To have a bank account
Includes Self Visa® Credit Card
The Self Visa® Credit Card also sets Self apart from other credit-builder loan providers. You can use this to show additional payment history and further build your credit. That said, this secured card needs to be used carefully since your credit limit will initially be low, with a minimum deposit of $100. If your utilization ratio gets too high, above 30% at most, you will hurt your credit.
Self Credit Builder Cons
High APR
With APRs between 15.51% to 15.92%, the Self Credit Builder Account is on the high side compared to other credit-builder accounts on the market. Compare that with something like Digital Credit Union's credit builder, which has a 5.00% APR.
Non-refundable fees
The Self Visa® Credit Card also has a $0 intro for the first year, then $25 annual fee.
Self customer service
Self has a high number of negative reviews flagging Self customer service as poor and trouble getting money back after the 24 months are up.
Self Credit Builder Costs and Fees
You can select from four monthly payment amounts, which you'll make for 24 months:
| Payment amount | APR | Total Payments | Total Savings |
| $25 monthly | 15.92% | $600 | $511 |
| $35 monthly | 15.69% | $840 | $717 |
| $48 monthly | 15.51% | $1,152 | $985 |
| $150 monthly | 15.82% | $3,600 | $3,069 |
Self Credit Builder Reviews and Ratings
The Better Business Bureau gave Self an F rating for the high volume of complaints the company received. Customers on Self's BBB page gave the company an average of 3.52 stars out of five across nearly 722 reviews. The company has 4.3 out of 5 stars with 963 reviews on Trustpilot. Most negative reviews cite Self customer service as poor, issues with retrieving funds after completing the loan, and high fees.
The BBB has put out an alert on Self over the numerous consumer reports of fraud and difficulty receiving payments. Self has communicated with the BBB, detailing its efforts to improve fraud detection and customer communication.
Self Credit Builder Alternatives
While Self is one of the more established credit builder loans with availability in all 50 states, that's quickly becoming less impressive as more credit-building products hit the market. Meanwhile, Self's high interest rates and poor customer service are starting to raise more eyebrows.
Here's how Self compares to other credit-builder loans in cost, monthly payments, and loan length:
| Company | Interest and Fees | Monthly Payments | Loan length |
| Self | 15.51% to 15.92% APR | $25 to $150 monthly | 24 months |
| Fizz Debit Card | No Fees or Interest | N/A | N/A |
| CreditStrong | $15 setup fee and 15.51% - 15.73% APR | $24-$48 monthly | 24-48 months |
| MoneyLion | $19.99 monthly subscription fee and 5.99% - 29.99% APR | $83.33 monthly | 12 months |
| DCU | 5% APR | $20.83-$250 monthly | 12-24 months |
| FreeKick | $0-$99 annually | $1,000-$2,500 annually | 12 months |
Credit Strong vs. Self
Self and CreditStrong are leading providers of credit builder loans. Self is available in all 50 states, and Credit Strong is available in 48. The two services are also very similar in fee structure, charging a setup fee and interest on the remaining loan balance.
Credit Strong offers slightly better interest rates and more flexible loan terms. While Credit Strong's Instal loans can last anywhere between 24 to 48 months, Self only offers 24-month loan terms.
However, the Self secured credit card is secured by the amount you've already contributed to your credit builder loan. This is a great perk, adding a revolving line of credit to your credit report without a hard inquiry. It's also cheaper than Credit Strong's Revolv account, costing just $25 annually compared to Revolv's $99 annual fee.
Read our Credit Strong review.
Kikoff vs. Self
Kikoff is designed solely for the purpose of credit building. There are no fees for late payments or interest charges, and it reports on-time payments to all three credit bureaus. It offers an easy, cost-effective method to improve credit scores, especially for those new to credit or recovering from past financial mistakes.
However, Self is still the stronger option. The Kikoff line of credit can only be used to buy Kikoff products and cannot be used for general purchases, which is a limitation compared to Self.
Read our Kikoff Review.
Self Credit Builder FAQs
How fast can Self build your credit?
Self builds credit in 24 months. With each payment you make to Self, you build credit, and all Self payment plans take 24 months to complete. However, if you don't have a credit score, it will take approximately six months before your credit file is scorable by the credit scoring algorithms.
Is Self Credit Builder worth it?
Self Credit Builder can be worth it if you need help building your credit. Sel impacts your credit score by reporting timely payments, which can positively affect your credit score by building a history of on-time payments.
Does Self Credit Builder work with all credit bureaus?
Yes, Self Credit Builder works with all three major credit bureaus. Self reports to Equifax, Experian, and TransUnion, enhancing users' credit-building potential.
Can Self Credit Builder hurt your credit?
Yes, Self Credit Builder can hurt your credit. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus, which may negatively impact your credit score. Self will not remove negative credit history from your credit report.
Why You Should Trust Us: How We Reviewed Self Credit Builder
The most important factors in our rating are trustworthiness, the fee structure and affordability of the product, and features provided — specifically prioritizing the number of bureaus reported to.
With Self Credit Builder, we looked closely at its reviews and what the customer experienced when working with the company. We also checked that it reports to all three major credit bureaus, its fee structure, and availability. We scored the product on the following factors:
- Trustworthiness
- Fee Structure and Affordability
- Features
- Flexibility
- Availability
Read the full methodology for how we rate credit products.
