Self – Credit Builder Account + Secured Visa® Credit Card: A Comprehensive Guide

The Self – Credit Builder Account + Secured Visa® Credit Card is an innovative financial product designed to help individuals build or rebuild their credit. It combines a credit builder account with a secured credit card, offering a unique way to improve your credit score while saving money. Whether you’re just starting your credit journey or looking to recover from past financial missteps, this product offers a pathway to a stronger credit profile. In this guide, we’ll explore the key features, benefits, and the application process for the Self – Credit Builder Account + Secured Visa® Credit Card.

Understanding the Self – Credit Builder Account

Before delving into the credit card component, it’s important to understand the Self – Credit Builder Account. This account is essentially a small loan held in a certificate of deposit (CD) on your behalf. Here’s how it works:

1. Opening an Account: You start by choosing a loan amount and payment plan. Options typically range from $25 to $150 per month, depending on your financial goals and budget. These payments contribute to a CD that matures over a set term, usually 12 to 24 months.
2. Building Credit: Each monthly payment is reported to all three major credit bureaus (Equifax, Experian, and TransUnion). This consistent payment history can help improve your credit score over time.
3. Accessing Funds: Once you’ve completed your payments, the CD matures, and the loan amount is returned to you minus interest and fees. This savings can then be used as you see fit, or to fund your secured credit card.

Key Features of the Self Secured Visa® Credit Card

The Self Secured Visa® Credit Card is the second component of this financial product, providing a way to continue building credit while using a traditional credit card. Here’s what makes this card unique:

1. Secured Credit Card: Unlike traditional credit cards, this is a secured card, meaning you provide a security deposit that acts as your credit limit. The minimum deposit is $100, which you can fund from your Credit Builder Account savings.
2. Credit Reporting: Like the Credit Builder Account, the Self Secured Visa® Credit Card reports to all three major credit bureaus. This helps ensure that your responsible credit use is reflected in your credit reports, further boosting your score.
3. No Credit Check Required: One of the most significant advantages of the Self Secured Visa® Credit Card is that it doesn’t require a hard credit inquiry for approval. This makes it accessible to individuals with low or no credit.
4. Low Annual Fee: The card comes with a modest annual fee of $25, making it a cost-effective option for those looking to build or rebuild credit.
5. Interest Rates: The card carries an APR of 23.99%, which is competitive for a secured credit card. However, like all credit cards, it’s best to pay off your balance in full each month to avoid interest charges.
6. Security Deposit Flexibility: Over time, as you save more through your Credit Builder Account, you can increase your security deposit to raise your credit limit, giving you more purchasing power and the potential to improve your credit utilization ratio.

Benefits of the Self – Credit Builder Account + Secured Visa® Credit Card

Combining the Credit Builder Account with the Secured Visa® Credit Card offers several benefits:

1. Comprehensive Credit Building: This product allows you to build credit in two ways—through installment payments on your Credit Builder Account and through responsible use of your secured credit card.
2. Savings Growth: The money you save in your Credit Builder Account is returned to you at the end of the term, minus fees and interest. This can be a helpful financial cushion or used to fund your secured credit card.
3. No Hard Credit Check: Because the application process for both the Credit Builder Account and the Secured Visa® Credit Card doesn’t involve a hard credit check, you can begin building credit without the worry of being denied due to poor credit history.
4. Simple Application Process: Applying for both the Credit Builder Account and the Secured Visa® Credit Card is straightforward and can be completed entirely online.
5. Credit Education and Tools: Self offers a range of educational resources and tools to help you manage your credit effectively. This includes access to your credit score, credit monitoring, and tips on improving your credit.

The Application Process

Applying for the Self – Credit Builder Account + Secured Visa® Credit Card is easy and can be done entirely online. Here’s a step-by-step guide:

1. Sign Up for a Self Account: Start by visiting the Self website and signing up for a Credit Builder Account. You’ll need to provide some basic personal information, choose your payment plan, and link a bank account for your monthly payments.
2. Make Your Monthly Payments: As you make your payments, Self reports your activity to the credit bureaus. This helps establish or improve your credit score over time.
3. Eligibility for the Secured Visa® Credit Card: After you’ve made at least three on-time monthly payments and have at least $100 in your Credit Builder Account, you’ll become eligible to apply for the Self Secured Visa® Credit Card.
4. Fund Your Secured Card: Once eligible, you can choose to fund your secured credit card with at least $100 from your Credit Builder Account. This amount will become your credit limit.
5. Receive and Use Your Card: After your card is funded, Self will mail you your Secured Visa® Credit Card. You can then start using it for everyday purchases, making sure to pay off your balance in full each month to avoid interest charges.
6. Monitor Your Credit: As you use your card responsibly and continue making payments on your Credit Builder Account, monitor your credit score regularly. Self provides tools to help you track your progress and stay on top of your financial goals.

Is the Self – Credit Builder Account + Secured Visa® Credit Card Right for You?

The Self – Credit Builder Account + Secured Visa® Credit Card is a powerful tool for those looking to build or rebuild credit. It offers a unique combination of savings growth, credit building, and a secured credit card that reports to all three major credit bureaus. If you’re someone with limited or damaged credit, and you’re committed to making regular payments, this product could be a game-changer for your financial future.

However, it’s important to remember that this product is not for everyone. The fees associated with the Credit Builder Account and the Secured Visa® Credit Card can add up, so it’s crucial to weigh the costs against the benefits. Additionally, this product requires a commitment to making regular, on-time payments—if you miss payments, it could negatively impact your credit score.

In conclusion, the Self – Credit Builder Account + Secured Visa® Credit Card offers a structured, disciplined way to build credit while saving money. By understanding its features, benefits, and the application process, you can make an informed decision about whether this product aligns with your financial goals.