Money

There’s A Simple Way To Build Your Credit Without Increasing Debt

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Updated on January 14, 2023 by
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The Credit Builder Account from Self is specifically designed to help everyday families build credit

Every parent wants to give their family a good life. However, sometimes it can feel like the financial system is stacked against you., especially when it comes to your credit.

Building credit can be a lot like finding a new job. You need experience to get the job. But you can’t get experience unless you get the job. Similarly, you may need credit to get a credit card, a car loan, or an apartment. But you may not be able to build credit unless someone issues you a credit card, gives you a car loan, or rents you an apartment.

Luckily, there are ways to overcome these hurdles and build good credit. Specifically, a financial technologies firm called Self has created Self Credit Builder Accounts to help people break the vicious cycle of having little to no credit.

Believe In Your Dreams Again

Image via Unsplash

Image via Unsplash

Want to move into a bigger apartment close to good schools? Want to own your own home? Want to start a small business, buy a new car, get a better credit card, or get better insurance? To do any of those things, you need credit.

Of course, for some people, building credit can be easy. If you are lucky enough to have parents with good credit, you can piggyback off them while you’re starting out. Maybe you become an authorized user on one of their credit cards, get added to their car insurance policy, or take out student loans with their backing. Then you slowly build your own credit as you go to college and start your career.

Unfortunately, for millions of Americans, it’s just not that easy. If your family had bad credit growing up, or you are an immigrant with no credit history, your family may be unable to help you. And even if you had all those advantages, one unexpected job loss or medical emergency could destroy everything you’ve built in a matter of weeks.

When your credit score drops, all sorts of doors may start to shut, and it can feel almost impossible to climb back up and get on solid ground again. What you need is a helping hand, somebody to just give you a chance, so you can start to build a better life.

Luckily, that is exactly what a Self Credit Builder Account is designed to do.

Build Credit Without Debt

Image via Self

Image via Self

At Self, they understand how the financial system can be stacked against people with little or no credit. So they created Credit Builder Accounts, a financial services product that helps people with little or no credit hack the system and get back in the game.

The genius of a Self Credit Builder Account is that it’s a loan that works similarly to a savings account. When you create an account, technically, Self gives you a loan. However, instead of giving you the money upfront, like a traditional loan, they give you the money at the end.

Every month, you make payments into your account. You choose how much you want to save and for how long (12 or 24 months1). At the end of the loan period, you get your savings back minus interest and fees.

From your point of view, the Self Credit Building Account works a lot like a savings account with automatic monthly deposits. But technically, it’s a loan. Every time you make a deposit, it’s actually a payment that gets reported to all three credit bureaus. Thus, you get to build credit simply by saving money.

Anybody Can Have Good Credit

Image via Unsplash

Image via Unsplash

With a Self Credit Builder Account, you can choose from monthly payments of $25, $35, $48, or $150 for total savings of $520, $724, $539, or $1663 respectively1. And your ability to make these monthly payments may be the only limitation. There is no minimum credit score required to open an account, and Self does not perform a hard credit pull when you apply.

Concerned that your financial situation may change during the 12 or 24-month saving period1, and you’ll lose all your savings. Don’t worry. With the Self Credit Building Account, you can cancel anytime and get your savings progress back, minus interest, fees, and penalties.

If you’re looking for a way to improve your credit without taking on debt, a Self Credit Builder Account may be just what you need. So why wait another day? Click here and start building your better life today.

Disclosures:

All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or SouthState Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be U.S. citizens or permanent residents and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to consumer report review and approval. All Certificates of Deposit (CD) are deposited in Lead Bank, Member FDIC, Sunrise Banks, N.A., Member FDIC or SouthState Bank, N.A., Member FDIC.

1Sample products: A loan with a $ 25-month payment, 24-month term with a $9 admin fee at a 15.92% Annual Percentage Rate with a cost to build of $89; A loan with a $ 35-month payment, 24-month term with a $9 admin fee at a 15.97% Annual Percentage Rate with a cost to build of $125; A loan with a $48-month payment, 12-month term with a $9 admin fee at a 15.65% Annual Percentage Rate with a cost to build of $46; A loan with a $150-month payment, 12-month term with a $9 admin fee at a 15.91% Annual Percentage Rate with a cost to build of $146. Please refer to www.self.inc/pricing for the most recent pricing options.

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