If you’ve had a few financial problems and are looking for a way to rebuild your credit history, signing up for a secured credit card is a solid first step. But since many of these cards offer tiny credit limits, require large upfront cash deposits, or incur tons of fees, finding the right card is easier said than done.
Enter a Self-Credit Builder account + Visa® secure credit card, a secure card that pairs with a Self Credit Builder account to help you increase your credit without having to pay a large deposit right away. With the Self Visa Credit Card, you can accumulate a security deposit over several months, choose your own credit limit, and then increase it over time as you make payments to your Credit Builder account.
Qualification is simple and Self will let you know exactly how you track your card. Once you meet the requirements, you are approved.
We’ve broken down the basics of how a Self Credit Builder account and a Self Visa credit card interact, how you can qualify, and what you need to know to get started.
Get started with a Self Credit Builder account
Before applying for a Self Credit Card, you must open a Self Credit Builder account. As the name suggests, a Credit Builder account is largely about helping you build credit. Unlike personal loans, which offer money up front as a lump sum that you have to pay back over time, credit loans keep your funds in an account while you make payments. This allows you to prove that you can repay what you have borrowed and gives you a chance to build your credit in the process.
Here’s a quick overview of how Self’s Credit Builder accounts work:
- You are applying to create a Self Credit Builder account. There is no credit check required to open a Credit Builder account – only a one-time non-refundable $9 administration fee. If you get approved, one of Self’s partner banks will give you a small loan (usually $500 to $1,700) and store it on a secured CD (certificate of deposit).
- You make payments for a period of 12 to 24 months. You set your monthly repayment obligations when you apply and can see exactly how much you will pay in fees and interest, as well as the total amount you will receive at the end of the loan period. Simply make the required monthly payments until your loan is repaid.
- You build credit history and add to savings. Loan payments are reported to the national credit bureau. Your payment history makes up 35% of your FICO score, so if you make payments on time and in full, you’ll build a positive payment history and see your credit score grow. In the meantime, you will increase your account balance with every monthly payment (minus fees and interest).
- You get the full loan amount back at the end. Once your credit balance reaches zero, your CD or savings account is unlocked and you have access to the full amount you borrowed minus interest and fees.
Before you apply, the Self Slider online tool lets you choose how much you’ll pay each month and see how much you’ll get back in 12-24 months. Visit self.inc/pricing for the latest pricing options.
How to qualify for a Self Visa credit card
Once you have created a Self Credit Builder account, it is quite easy to qualify for a Self Secured Visa. You can receive a card after you fulfill the following conditions:
- You have made at least the last three monthly loan payments in full and on time.
- You saved $100 or more on your Credit Builder account.
- You have no outstanding fees.
If you meet these requirements, you can apply for a Self Visa card without a credit check, even if you haven’t finished paying off your Credit Builder account yet. You are automatically approved and will not need to deposit extra money as collateral or damage your credit by submitting your credit report to a hard request.
Features of Visa Self credit card
The Self Visa credit card offers a number of features and benefits that make it particularly useful for those looking to build or rebuild credit. Some of his most important highlights include the following:
You can increase your deposit over time
Unlike other secured credit cards, which typically require a deposit of $200 or more before you can use them, the Self Visa credit card uses the money already in your Self Credit Builder account to secure your line of credit. . .
When you open a Self Credit Builder account, you can choose a monthly commitment that works for you and increase your security deposit over several months instead of coming up with hundreds of dollars at a time.
You set your own credit limit
You choose your Visa Self credit card credit limit based on the amount you have saved in your Credit Builder account. For example, if you paid $500 as principal on your Self Credit Builder account, you can access up to $500 in credit limit without depositing additional money.
This can really help you manage your credit usage as you can set a credit limit that makes sense based on your spending habits, not how much money you can afford to collateral. And to further help you stay on top of your credit, the Self app and website feature a credit usage tracker, making it easy to know where you are.
You won’t pay a lot of fees
The Self Visa Card’s fee and penalty policy is far more lenient than most credit cards, making it a great choice for those rebuilding their credit or new to credit cards.
The Self Visa credit card has an annual fee of only $25, and unlike many cards, it doesn’t penalize you with a higher annual percentage if you have difficulty paying on time. The card also does not charge a fee for the first late payment. And if you get it wrong again, you’ll pay $15 – less than half the $40 maximum late fee many other cards charge. Other typical fees, such as insufficient funds fees and debit card convenience fees, still apply.
You can use the card wherever Visa is accepted
What makes the Self Visa card useful is that it is a real credit card. In other words, you will be able to use it anywhere Visa is accepted in the US, including gas stations, grocery stores, and online stores. Most other options for creating credit, such as in-store credit cards and online credit accounts, won’t give you that freedom.
Your credit history is reported to all three credit bureaus
Be sure to make the minimum payment due on your statement balance each month to increase your credit. Your payment activity will be reported to all three credit bureaus, so it is important to practice responsible credit management. In addition, since the card is combined with a Self Credit Builder account, you will also demonstrate responsible credit habits by having a blended loan.
bottom line
If you’re serious about building or rebuilding your credit, the Self Visa credit card can be a great option, offering a low barrier to entry, forgiving terms and the ability to gradually increase your security deposit over time.
Instead of trying to raise hundreds of dollars at once to secure your card, you can open a Self Credit Builder account, choose the monthly commitment that suits you, and start saving your deposit with a simple payment plan. If you qualify, you can get a card without a credit check, set your own credit limit, and increase your credit on multiple fronts.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.