Our experts choose the best products and services to help make smart decisions with your money (here's how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
Credit invisibility can often be a negative feedback loop where 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, which has you paying the entire loan off before you get your money. This structure protects lenders from risk, so they can accept people with bad or no credit, and the borrowers' payments still get reported to credit bureaus so they can raise their credit scores.
Large banks like Bank of America or American Express usually don't offer credit builder loans, so borrowers usually have to look regionally, like a local credit union. However, as one of the loans we included in our guide on the best credit-builder loans, Self's credit-builder loan is one of the few available nationwide. See how Self can help raise your credit score and if it's right for you.
Read more: Loans for no credit.
Self Credit Builder Loan Overview
Self, an Austin, Texas-based startup founded in 2014, is an online lender that offers 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's biggest draw is its Visa secured credit card that you are eligible for after you make three on-time payments and have paid at least $100 into your credit-builder account. The secured credit card also comes with a $25 annual fee and an APR that hovers around
On the other hand, Self's relatively high APRs from
The BBB has put out an alert on Self over the numerous reports of fraud and difficulty receiving payments coming from consumers. As of July 13, 2023, the BBB and Self are in talks to remedy these problems.
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 secured credit card, and Self will report your payment activity to the credit bureaus as an installment loan. Here are the details:
The first step is to choose a loan based on how much you want to pay monthly.
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 | $520 |
| $35 monthly | 15.97% | $840 | $724 |
| $48 monthly | 15.72% | $1,152 | $992 |
| $150 monthly | 15.88% | $3,600 | $3076 |
After you've made your pick, fill out an application for a credit-builder account, which is backed by Self's FDIC-approved financial partners. Once approved, you can activate your account with a one-time, non-refundable $9 administrative fee.
At that point, Self will issue your loan — but instead of giving you the funds directly, it'll 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.
You will qualify for the Self Visa secured credit card when you've made three on-time payments and deposited at least $100. 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 reports your payment activity to the credit bureaus as you make your monthly payments. Payment history makes up 35% of your FICO credit 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.
Self Rent and Utilities Reporting
While making payments toward your credit builder loan will help you build payment history, Self's new rent and utilities reporting will allow you to build credit using monthly expenses you're already making.
For $6.95 per month, Self will add your monthly rent, cellphone bills, and utility payments to your credit reports. Users can also add up to 24 months of prior rent and utility payment history for a one-time $49.95 fee. The service also comes with $1 million in identity theft insurance.
While rent reported through Self gets reported to all three credit bureaus, utility payments only get reported to TransUnion.
It's also worth noting that Self also owns a credit reporting company called LevelCredit, one of the services listed in our guide on the best rent reporting service. LevelCredit offers the exact same payment terms and services as Self's rent reporting service.
Self Credit Builder Pros and Cons
Self credit builder pros include flexible payment options, nationwide availability, and access to the Self Visa secured credit card. Cons include relatively high APRs and non-refundable fees.
Self credit builder pros
Payment flexibility: While Self offers four payment plans, they also don'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 US resident
- Have a social security number
- Have a bank account
Includes Self Visa secured credit card: The Visa secured 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 the most, you will hurt your credit.
Self credit builder cons
Relatively high APR: With APRs between
Non-refundable fees: High APRs aside, Self requires an up-front $9 non-refundable processing fee. The Self Visa secured credit card also has a $25 annual fee.
Bad customer service: Self has a high number of negative reviews, flagging poor customer service and trouble getting money back after the 24 months are up.
How Self Credit Builder Compares To Its Competition
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 | $9 setup fee and 15.72% - 15.97% APR | $25-$150 monthly | 24 months |
| 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 |
Who Is Self Credit Builder For?
Self credit builder is for a specific consumer. If you have no credit or a damaged credit score in need of repair and you have a flexible budget, Self could be a convenient option for you. Its large builder plan would have you paying $1,152 over 24 months and getting $992 in return, costing a total of $169.
If you're not sure you'll be able to make your payments, it's probably not the best time to start a Self account. The service reports your payment activity and whether or not your payments are on time, meaning that if you miss one or more, you could wind up doing more harm than good to your credit score. Self also charges a late fee, 5% of your monthly payment.
Self, and any other credit-building loan, is a means to an end. Yes, you can view Self as a way to save money and build credit, but if you want to save money, Self is far from the best savings account. You can also find better secured credit cards than the Visa secured card that Self offers. The best secured credit cards come with no annual fee, better APRs, and even some benefits.
Self Credit Builder Frequently Asked Questions (FAQ)
How fast does Self build credit?
With each payment you make to Self, you build credit. 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.
Does Self credit builder boost your credit score?
The results of your Self credit builder will vary, but you will likely see a boost in your credit score as you add positive payment history information to your credit report. You will also add an installment loan onto your credit report, which can help if you only have revolving credit accounts like credit cards. According to Self's website, the average customer sees a 49-point boost in their credit score.
Is Self credit builder legitimate?
Yes, Self credit builder and its services are legitimate. It's one of the few services of this type available nationwide.