Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Loans Why Self’s Credit Builder Loan Is Best for Added Benefits in 2024 Updated Oct 31, 2024 6-min read Reviewed by Bob Haegele Reviewed by Bob Haegele Expertise: Bob Haegele has been a freelance personal finance writer since 2018. In January 2020, he turned this side hustle into a full-time job. He is passionate about helping people master topics such as investing, credit cards, and student loans. Learn more about Bob Haegele Best Added Benefits 4.8 /5 View Rates Credit Builder Loans Choose between 4 credit-building plans Get your money back minus interest and fees Access to the Self Visa® Credit Card if you make on-time payments Payments are reported to Equifax, Experian, and Transunion $9 admin fee $25 annual fee for card Up to 5% late payment fee Monthly payment$25, $35, $48, or $150Repayment term24 monthsTotal cost$89, $123, $167, or $531Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., or First Century Bank, N.A., each Member FDIC. Subject to credit approval. The secured Self Visa® Credit Card is issued by Lead Bank or First Century Bank, N.A., each Member FDIC. Self Financial’s Credit Builder Loan and Self Visa® Credit Card offer standout benefits for those building credit. Available in all 50 states with no upfront deposit or credit check, Self makes credit-building accessible. Its valuable features include financial tools and resources. Table of Contents Skip to Section How a Self credit builder loan worksHow Self helps build creditPros and cons of a Self credit builder loanMore about Self How a Self credit builder loan works To start with Self’s Credit Builder Loan, complete the online form, pay a $9 administration fee, and choose a plan with monthly payments from $25 to $150. There’s no credit check, but you won’t access your funds immediately. Instead, your payments are deposited into a certificate of deposit (CD). After 24 months, the CD matures, and you’ll get the total amount minus interest costs, based on your monthly payments. Source: Self How Self helps build credit Self helps you build credit by reporting your monthly payments to Experian, TransUnion, and Equifax. On-time payments improve your credit because payment history makes up 35% of your credit score. Though results vary, research suggests credit builder loans can raise scores by up to 60 points over time. Making on-time monthly payments is key to getting the most credit-building benefit from your loan. Pros and cons of a Self credit builder loan Pros No credit check or upfront security deposit required Easy qualification Available in all 50 states Payments reported to 3 major credit bureaus Ability to choose your payment amount Comes with free credit monitoring Cons All plans require a nonrefundable administration fee Can’t access your money until the end of the term Late payments are also reported to credit bureaus, which could damage your credit Rate is higher than several other credit builder accounts You may not be able to keep the interest earned on your CD Self eligibility requirements One of the benefits of the Credit Builder Loan is that qualification is relatively easy. You choose your plan, pay the administration fee, and then complete a form online. Self has a few basic requirements to apply: You must be a U.S. citizen, permanent resident, or non-resident alien You must be at least 18 years old You must have a Social Security number You must have a valid bank account Self doesn’t specify income requirements and won’t perform a hard credit inquiry. However, you may see a soft credit inquiry—which doesn’t affect your credit score—to verify your identity and for credit monitoring purposes. Is Self a legit company? Self Financial is a legitimate credit-building company with mixed reviews across platforms. Although it has a substantial user base, Self earns an “F” rating from the BBB, where it’s not accredited. SourceCustomer ratingNumber of reviewsTrustpilot2.6/5160Better Business Bureau (BBB)2.89/5467Google4.3/51,954Collected on October 31, 2024 The BBB reports a pattern of complaints about Self, particularly regarding contract and credit reporting issues. Customers have raised concerns over debts appearing on their credit reports and reported difficulties obtaining copies of their contracts. Self Financial responded, stating that its credit reporting practices comply with Fair Credit Reporting Act (FCRA) standards and clarified that contracts are accessible via customer dashboards. Self has faced complaints regarding identity verification issues, with some customers unaware of accounts opened in their names. Self asserts that robust identity verification is conducted during onboarding. The BBB also flagged testimonials on Self’s website as potentially misleading due to implied guarantees about credit score improvement, which may not reflect typical customer outcomes. While Self updated its disclosures to reflect individual experiences, the BBB determined these changes did not fully meet its Code of Advertising standards. Alternatives to Self credit builder loan While the Self Credit Builder Loan has its advantages, it may not be the best choice for everyone. Consider these other top-rated credit builder loans if you’re confident the product is right for you but you want to explore other companies. CompanyBest for…Rating (0-5) Best for a credit-building card 5 View Rates Best collection of products 4.6 View Rates Best for a small credit-building plan 4.6 View Rates Alternatives to credit builder loans If you’re unsure whether you should proceed with a credit builder loan, consider these products to help build credit. Secured personal loan A secured personal loan requires collateral, such as a car, home, or savings account, which may make it easier to qualify and improve credit with on-time payments. However, missing payments risks your assets, so only consider this if you’re confident in your ability to repay. Secured credit card With a secured credit card, you provide an upfront deposit, typically equal to your credit limit. Payments reduce your available credit and are reported to credit bureaus, which can help build your score if made on time. While the deposit is a downside, it’s a solid option if you have extra cash. Student credit card A student credit card offers students a way to start building credit with lower limits and tailored benefits. These cards may carry higher interest rates, but they’re often easier to qualify for and designed for young adults establishing credit. Does Self have a customer service team? Yes, Self has a customer service team available to assist users. You need an account with Self to use the chat feature because you must be logged in. You can reach agents by calling 1-877-883-0999. How to apply for a credit builder loan with Self To apply for a Self Credit Builder Loan, visit the Self website or download the app, and complete the online application. You’ll provide basic personal information and pay a $9 nonrefundable administration fee. No credit check is required, making it accessible to those with limited credit history. Once you’re approved, choose a monthly payment plan that fits your budget, ranging from $25 to $150. How we rated Self We designed LendEDU’s editorial rating system to help readers find companies that offer the best credit builder loans. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms. We compared Self to several credit builder loan providers, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below. ProductBest forOur ratingSelf credit builder loanAdded benefits4.8/5