Self Credit Builder Review: A Comprehensive Analysis (2024)

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit score services to help you make smart decisions with your money.

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 like Bank of America or American Express don't offer credit builder loans, so borrowers usually have to look at regional options, like a local credit union.

Business Insider's personal finance team compared Self's credit builder loan 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 because of its Self Visa® Credit Card

What is Self Credit Builder?

Overview of Self Credit Builder

Self, an Austin, Texas-based startup 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's credit builder loan is one of the few credit-builder loans available in all 50 states. Self offers four payment plans that cost $25 - $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. 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 29.24% Variable.

On the other hand, Self's relatively high APRs from 15.51% to 15.92% make it a tough sell. Additionally, 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 3.37 stars out of five across nearly 600 reviews. The company fares worse on Trustpilot, receiving an average of 1.8 stars. Most negative reviews cite poor customer service, issues retrieving funds after completing the loan, and high fees.

The BBB has put out an alert on Self over the numerous reports of fraud and difficulty receiving payments coming from consumers. Self has communicated with the BBB, detailing its efforts to improve fraud detection and customer communication.

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.

Compare Credit Builder Accounts

How Self Credit Builder Works

Key Features of Self Credit Builder

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.

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:

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.

At that point, Self will issue 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.

You will qualify for the Self Visa® 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 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 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 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 $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.

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.

Available Pricing Options

Here's how Self compares to other credit-builder loans in cost, monthly payments, and loan length:

Self vs. CreditStrong

Self and CreditStrong are leading providers in credit builder loans. Self is available in all 50 states and CreditStrong is available in 48. The two services are also very similar in fee structure, charging a setup fee and interest on the remaining loan balance.

CreditStrong offers slightly better interest rates and more flexible loan terms. While CreditStrong's Instal loans can last anywhere between 24 to 48 months, Self only offers 24-month loan terms.

However, Self's secured credit card is secured by the amount you've already contributed to your credit builder loan. This is a great perk which adds a revolving line of credit to your credit report without a hard inquiry. It's also cheaper than CreditStrong's Revolv account, costing just $25 annually compared to Revolv's $99 annual fee.

Read our CreditStrong review.

Self vs. Fizz

It's hard to argue with a free service, which is exactly what Fizz is. Fizz is a debit card that reports your transactions to all three credit bureaus. It does not charge any interest on your balance and there's no setup fee. Fizz also has guardrails in place so you don't overspend without paying off your existing balance.

The one advantage Self has over Fizz is that Fizz is a revolving line of credit. If you already have a credit card, Fizz won't be nearly as helpful as Self, which is an installment loan. However, for simple, cheap credit building, Fizz is a better deal.

Read our Fizz review.

Who Is Self Credit Builder For?

The 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.

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 your payments are on time. Missing a payment may cause a credit score drop. 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 Self Visa® Credit Card. The best secured credit cards come with no annual fee, better APRs, and even some benefits.

Frequently Asked Questions About Self Credit Builder