Self Lender is a tool for people that need to build or establish new credit. Self Lender is a bit of a unique product. Customers apply for a loan and Self Lender uses the funds from that loan to open a certificate of deposit (CD) in the customer's name. Each month payments are made towards unlocking the CD value. At the end of the loan period customers receive a check for the amount. Self Lender reports payments to all 3 credit bureaus.
Sounds easy, right? But why does this product exist? Up-to 60% of U.S. adults are considered to have less than perfect credit. Self Lender is a tool to help customers that need to improve their credit score build a positive history. Each on-time monthly payment adds a little more positive history to your credit profile. The types of credit you have access to also impact your score. Adding a loan to a credit report can have a positive impact on a consumers overall credit health.
Self Lender also makes savings accessible for consumers that have a hard time saving on their own. For those that don't have the will power to not drain their online savings account each month, Self Lender provides an attractive solution. Customers can't withdraw money until the loan is paid off. At the end of the loan period a customer has been trained to save money via a monthly payment.
Finally, customers are also walking away with a stack of cash at the end of their loan. This is helpful for a number of reasons. If you need to continue on your credit building journey, you now have a deposit in hand for a secured card. Alternatively, maybe you want to buy a car. You now have a down payment and ideally, an elevated credit score.
Self Lender pricing is pretty straight forward. You'll pay an administrative fee between $9 - $15 depending on the loan amount you choose. You'll also pay interest on the loan while you make payments.
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If you have a credit score hovering in the low 600's, Self Lender may be a good way to help you boost your score. Alternatively, if you're hovering in the upper 600's but only have revolving lines of credit on your credit report, Self Lender's installment account may be enough to push you over 700 into "good/excellent" credit territory. Everyone is going to see slightly different results, but if you want to improve your credit and need to establish some savings, you can't go wrong with Self Lender.
Individuals that have good saving habits already, with credit scores above 700. You're already doing pretty good on your own. You'd probably benefit the most from an online investing platform.
If you can afford $25 a month and need to add an installment account to your credit mix, start building some positive payment history, or establish new credit than Self Lender is the product for you. This no hassle product is a sure fire way to force yourself to save money while you build positive credit - as long as you stick to making your monthly payments.