Self
4.7
7.0
Overall Score
Author: Jenna Vasquez
Self, formerly known as Self Lender, is a venture-backed credit builder startup based in downtown Austin, Texas.
With the understanding that building a financial foundation can be a daunting task, Self helps people begin their financial journey with a savings plan that builds credit. The company has a credit reporting/credit monitoring component, which is free.
Credit scores are refreshed once a month for this interface. Self's flagship product is a savings plan that builds credit, wherein the company reports on-time payments each month after a payment is made. Self’s banking partners are Sunrise Banks, N.A., and Lead Bank.
The Good
- Free Credit Monitoring
- Savings Plan
- Credit Builder Calculator
- Referral Bonus
- Scholarship
- Credit Resources
Free Credit Monitoring
Self offers credit monitoring on a regular basis and a free yearly credit report with a general range of a person’s credit score, Experian Vantage Score 3.0. This free credit monitoring service allows customers to monitor their credit and save money.
To take advantage of this service, a client needs to be a valid permanent U.S. resident with a physical U.S. residence, be at least 18 years old, have a social security number, phone number, and email address.
Savings Plan
Self is unique in that it manages credit-building savings accounts in addition to credit monitoring. Each credit lender account is a small loan held in a certificate of deposit (CD) account for a loan term of 12 months in an FDIC-insured bank account.
Each month, the client pays set loan amounts, which is held in the account, and each payment is reported to all three credit bureaus. By paying on time each month, clients can build a positive credit history and prove to financial institutions that they can borrow responsibly by showing they can successfully avoid making a late payment.
It's important for consumers to know that a repayment will be reported as a late payment if it is not received within 30 days of the due date.
The savings account is always accruing interest. After 12 months, the savings account unlocks and funds arrive in 10-14 business days.
Clients can choose if they want to start paying off their accounts or close their accounts early for a less than $1.00 fee.
Opening a credit builder account requires the same eligibility points listed in the credit monitoring section above as well as an additional bank account or debit or prepaid card (debit card incurs a convenience fee).
Credit Builder Calculator
Prospective credit builder loan account holders can utilize the calculator to determine the total savings amount they want to take out.
This helpful tool shows how much the administrative fee, monthly payment, and yearly total interact based on the amount selected for one of the variables.
Referral Bonus
All Self account holders can refer friends and family to the company and earn a $10 check for each referral’s first successful credit builder account payment.
Scholarship
The company demonstrates a commitment to college students by offering an annual scholarship of $1,000 to a full-time student enrolled in a two-year, four-year, or graduate program in business, finance, entrepreneurship, computer science, economics, accounting, or mathematics.
Credit Resources
Self offers a variety of educational credit-specific resources that can be found on its website.
Consumers can learn about credit, credit history/payment history, credit limits, the difference between poor credit and good credit, credit scores and reports, how to build credit, and more.
Additionally, Self offers information that helps clients learn about its financial products, how to handle money, how to make a loan repayment, and so on.
The Bad
- No SMS Alerts
- Single Bureau Monitoring
No SMS Alerts
While Self does alert clients via email if there is a major credit report change, the company does not currently offer text message alerts. Without text message alerts, consumers may miss an important credit check or credit reporting update.
Single Bureau Monitoring
Self appears to only provide free credit monitoring for customers' Experian credit reports. Many other credit monitoring services monitor credit reports from all three major agencies.
Monitoring credit reports from all three reporting agencies allows customers to more easily keep track of their credit reports and scores.
The Bottom Line
Self provides financial products including free credit monitoring services and an excellent credit-building savings program that is set at an affordable cost.
Additionally, Self offers a scholarship, a referral bonus, and credit resources that cover topics like payment history and how to build your credit.
Unfortunately, Self does not appear to provide text alerts and does not monitor credit reports from all three major credit bureaus.
However, this company is a good one for consumers to consider as it offers the convenience of utilizing both credit monitoring and credit building services through one account.
Though the credit builder lending account program is considered a loan, it’s not traditional in that clients cannot spend the loan amounts immediately. Instead, clients can think of each monthly payment as a money payment to themselves — and an easy way to build good credit when they repay the loan on time.
Each on-time loan repayment is reported on a monthly basis to the three major credit bureaus.
If you are looking for a free one-bureau credit monitoring service and a way to rebuild your credit/improve your credit, Self might be a good option.
Additionally, it is encouraged that you take the time to read several Self reviews if you wish to obtain a more in-depth view of the company's program and credit monitoring services.
