Now, when you first open the account, your score may drop a few points.

You’re opening a new account and your credit score improves as your average account ages.

This will only be temporary and shouldn’t affect your score much if at all.

Your Self Lender secured loan should show up on your credit reports in as little as 30 days.

Some people claim to have seen an increase in their scores in as little as 2-3 months of payments.

Let's Look at The Self App and Self Lender Platform.

Self Lender Application  

Honestly, if you can’t afford the bigger monthly payments, you can choose the lower options as low as $25/month.

The amount doesn’t really matter in the grand scheme of things.

You’re more worried about making the payments on time every month and building your credit!

If you decide to do the 24 month plan you can make $25 dollar payments, or you can choose the 12 month plan and make $48 payments.

There is no right or wrong! 

So for the $89 dollar per month option for 12 months, you’ll end up paying $1080 over the 12 months.

You’ll receive $1,000 and the privilege of building your credit which should be worth well over $80 that you spent over the 12 months.

You’re essentially going to get back what you put in, but you’ll have 12 months of on-time payments.

After all, this the main reason you opened an account with Self in the first place. Once you’ve determined your terms, you’re ready to apply.

5. After you’ve applied you’ll need to wait maybe 24-48 hours to be approved.

Once you’re approved you’ll receive an email confirmation letting you know you’re approved and it will list the loan information and details.

After Being Approved

1. Login to your account and go to the settings tab. 

2. Click add a payment method. I’d recommend adding your bank account as it’s free. With the debit card, you’ll have to pay a small transaction fee of like 3% each time you make a payment. 

3. Once you’ve added your payment info, check the box “enroll and activate for autopay." This is important because it’s a set it and forget it strategy. You don’t have to worry about logging in and making the payment each month and risk forgetting a payment. 

After you do this, you’re finished up and you can just login periodically if you need to otherwise you’re set until your term finishes up. Congrats!

Self Lender Benefits

Minimizing debt is a major factor in improving your credit and building history!

Whether you want to apply for a home loan, auto loan or any other type of loan, you’re likely not going to get approved unless you have some sort of positive credit history and you’re over a specific score.

Yes, you’ll have to make monthly payments. This can be very manageable amounts depending on the self account you choose. It’s also a payment to yourself.

So, you’re able to build credit by paying yourself as opposed to paying a credit repair company hundreds of dollars each month with no guarantee of any results.

You also have to give your personal information out such as credit card number, social security number and other information.

That could really bite you in the ass if it turns out to be a sketchy company.

Self Lender Isn't Right For Everyone

Now, as Self can be a great tool for many people to build their credit, it’s also not a one size fits all.

If you already have a good score, let’s say over 700, you probably don’t need to be opening an account with Self.

Unless you have a poor payment history which is driving you down to 700 when you should be at 800, then Self probably isn’t the best option for you.

It’s not to say that it necessarily will worsen your score, but it probably won’t increase your score.

If your score is already high or if you already have perfect payment history, there's no reason to sign up.

Who Does Self Lender Benefit?

Self is the most beneficial for someone that may be let’s say below 600 that is looking to improve their payment history and improve their score.

It’s also beneficial for someone that may not have much of a credit history at all.

It gives you an account with positive monthly payments each month which is what lenders want to see.

Lenders look at your credit report to be able to determine if you’re trustworthy of paying back their money they loaned you.

If you don’t have any credit history to look at, then they likely won’t approve you of that home loan.

So, it can be a great tool for someone that may be in college and doesn’t have much credit, but is looking for an easy way to start building their credit profile.

Other Benefits of Self Lender

Another benefit of Self is that you can create a free account and receive your credit score for free.

You don’t make any payments until you apply for the self-builder loan.

Also, I wouldn’t recommend this, but if you do open an account and are unable to pay it due to financial hardship, you can contact self and cancel the loan early.

You might have to pay like a $1 cancellation fee, but you won’t have to worry about late payments being recorded on your credit reports.

I say I don’t recommend this because if you’re opening a self credit builder account then you should be prepared to make the monthly payments each month. 

Secured Credit Card vs Self Lender

Many people wonder if they should get a secured credit card or create a self lender account.

Now, there isn’t a right or a wrong.

With a Secured Credit Card

There’s no guarantee you’ll be approved even with it being secured. 

You’ll also get a hard inquiry on your credit report as well as having to deposit your secured money.

So, for those unfamiliar, basically you send in x amount of money to the credit card company.

They will then send you a credit card with a $500 credit limit.

It’s called secured because the credit card company has secured your $500 in case you don’t pay the $500 you may charge up on your credit card.

If you don’t have the money to put towards a secured credit card then maybe self-lender is the better option for you to increase your credit score.

With a Self Lender Loan Account