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.
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 |
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