Here’s something new–it’s an innovative way to build your credit while you save. If you’re in need of establishing or building your credit score in a safe, simple way….check out Self Lender.
What is Self Lender?
Self Lender helps you take control of your credit with free personalized credit score tracking, credit monitoring, and the opportunity to apply for a credit builder account. The credit builder account is the most interesting part of Self Lender. They’re the first company to offer these accounts on an almost nationwide basis and completely online (they’re not yet available in New York, Wisconsin, or Vermont).
How does it work?
- First, join to check your credit score and get an idea of where you’re at.
- Second, apply for a credit builder account to build credit and start saving money.
What is a credit builder account?
A credit builder account is a small loan that’s held in a CD account for 12 months. Unlike with a traditional loan, you don’t receive access to the money until the loan has been completely paid off. The account is FDIC insured, earns 0.10% APY interest, and is held for you in your name during the term.
It works like this:
- They lend you money that is held in an FDIC insured, CD account for 12 months.
- Next, you make 12 equal payments over the course of your term to repay the credit builder account. Payment history is reported to the credit bureaus each month, which is incredibly important since payment history makes up 35% of your FICO score.
- At the end of the term, you’ve paid off your loan, and your CD has matured and earned interest! Plus, you’ve demonstrated months of payment history to the credit bureaus.
One of the best benefits of these accounts is that you get in the habit of paying yourself first. While a secured card might give you access to money immediately, the credit builder account teaches you to automatically save your money.
Who is it for?
Credit builder accounts are great for anyone who needs to establish or build their credit. No credit score? Bad credit? No problem.
For example, Derrick Camber was a server in southern California when he unexpectedly lost his job a few years ago. With bigger worries on his mind, he let a few bills slip and fall into collections. He ended up with 22 negative items across his credit report, which took a big toll on his credit score.
A few years later, when he was gainfully employed again and looking to finance a car, Camber discovered the extent of his credit damage.
Enter Self Lender. After taking out a credit builder account from Self Lender, according to Camber, his score went from 495 to 640 in just five months.
Unlike a secured credit card, the credit builder account does not require an initial deposit and has no annual fee. It’s free to join and only requires a $12 administrative fee to activate your credit builder account. There are three different credit builder account options, with monthly payments of $48.50, $97, or $194.
Even better, you get $10 for every referral that signs up for a credit builder account with Self Lender.
So sign up now and start building your credit. Make 2017 the best year yet!