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If you’re trying to manage your finances better in 2021, you’re not the only one — whether you’re looking to take control of your credit or build credit while saving money, look no further than Self Financial. Self is a financial technology company that’s helped hundreds of thousands of people build a stronger financial future. Starting at just $25 a month*, you can build credit while saving money.
Here’s how Self works:
First, apply for a Credit Builder Account. Next, pay off your Credit Builder Account in the amount of time that’s specified — you can even choose the payment term and the dollar amount that best fits your budget. Every time you make your monthly payments on time is another brick that you lay in the foundation of your credit, helping you build both your credit history and add to your savings over time. Finally, once you’ve paid off your Credit Builder Account, your CD unlocks and the money is yours (minus any fees you paid and interest accrued over time).
This process is done through what’s called a credit builder loan — and if you’re unfamiliar with this type of loan, it’s quite simply an installment loan that exists to help build positive credit history. The primary difference between credit builder loans and traditional loans (like a personal loan) is that the funds you request won’t be available to you until you complete all your payments. The purpose of that is the lender reduces their risk and potential loss.
Though loan amounts tend to be between $300 and $1,000, some banks offer credit builder loans as high as $2,500. If your application is accepted through Self, your loan amount is moved into a separate account — your certificate of deposit (CD). Then you can pay off your loan in the loan term that you set, with Self reporting your monthly payment activity to three major credit bureaus (Experian, Equifax and Transunion).
Featured in Forbes, MSN, credit.com and Nerdwallet, Self can help you build a positive payment history (and credit), even if you have a poor credit score or low credit. Since your payment history for your loan counts for 35% of your FICO score, which is the largest share, making payments on time can help build your credit — and conversely, if you don’t make payments on time, it can hurt your credit. By using a credit builder loan, you can start to establish this payment history — especially since part of the process involves making regular payments.
As with any financial tool, a credit builder loan works in accordance with how you intend to use it — so by making your payments on time and in full, you can start to make positive gains. If you improve your credit history, it certainly opens doors — including easier access to bigger future loans (like an auto loan), credit cards or a better interest rate on credit products.
In order to use Self, you must:
- Be at least 18 years old
- Be a US citizen or permanent resident
- Have a Social Security number
- Have a bank account, debit card or prepaid card to help you make payments
- Live in one of the 50 US states
Build your credit and savings at the same time — choose from four different plans ranging from 12-24 months. See your options by visiting the Self Financial website today.
This is a sponsored post by Self where we may receive affiliate commission.
*Sample products: A loan with a $35 month payment, 24 month term with a $9 admin fee at a 15.97% Annual Percentage Rate with a finance charge of $125; A loan with a $48 month payment, 12 month term with a $9 admin fee at a 15.65% Annual Percentage Rate with a finance charge of $46. Please refer to http://www.Self.inc/pricing for the most recent pricing options.
All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to ID verification and consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. 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. This product will not remove negative credit history from your credit report. All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Bank, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC. The Self Visa®️ Credit Card is issued by Lead Bank, Member FDIC, Equal Housing Lender.
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