We’ve all heard the horror stories that often come from unchecked credit spending. Once irresponsible shoppers start slapping down a credit card with abandon to handle big purchases…well, it can get ugly.
Yet, what happens to consumers who are so responsible that they never use credit? The Catch-22 of finances is that avoiding the use of credit probably isn’t a great move either. Establishing a good credit history can be key in achieving several life goals, including buying a car or home, getting better insurance rates, renting an apartment, or even getting a good job.
For those worried about establishing good credit, Self Inc. is a first-of-its-kind service that takes a different approach to help users achieve the top-notch FICO scores everyone wants.
Rather than compiling a strong credit history through purchases and repayments, Self establishes each user’s credit as they accrue much-needed personal savings instead. It’s a new and smart way to build credit that’s both safe and secure without paying the outrageous interest rates found on most credit cards.
Here’s how it works. Users go to the Self Inc. website and apply for a credit builder loan, usually between $500 and $2,000. Depending on how much a user can afford to repay each month, Self then approves that loan and deposits the total into a locked account.
Over the next 12 to 24 months, the user pays back that loan in monthly installments — with each of those on-time payments being reported to all the major credit bureaus as a show of responsible bill payment, which is the largest single component of any individual’s credit score. Once the user fulfills the term, the account unlocks, returning all the money the borrower paid minus any interest and admin fees.
Rather than buying stuff on your credit card (and paying interest rates that can be up around 25 percent), Self is a relatively quick, relatively small, yet foundationally important way to prove your financial responsibility and elevate your credit score. Especially when stacked against other bigger commitments like paying back a 10-year student loan or a 15- or 30-year conventional mortgage, Self puts a quick, positive result on your credit scoreboard.
For those who’d rather go a more conventional route, Self also offers a secured credit card for those users who want to build credit the old-fashioned way: by charging it. With a secured card, the user puts down a deposit equal to the card’s limit as collateral. But by showing responsible credit card use and repayment over the stretch of just a few months, this tactic can play a big role in establishing the kind of credit history everyone wants to build.
You can put yourself on track to a responsible financial track record by heading over to the Self Inc. website and submitting your application now.
This is a sponsored post by Self where we may receive affiliate commission.
All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to ID verification and consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Banks, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC.
Sample products: A loan with a $35 month payment, 24 month term with a $9 admin fee at a 15.97% Annual Percentage Rate with a finance charge 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 finance charge of $46. Please refer to www.Self.inc/pricing for the most recent pricing options.
Prices subject to change.
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