Self credit-builder at a glance
- Loan amounts: $600 to $3,600
- Loan terms: 24-month terms, with 4 monthly payment options
- Speed of funding: 5 to 10 business days once you’ve made all payments after the 24-month term
- Fees: Late fees, early withdrawal fees, return payment fees
- Credit requirements: No minimum credit score; designed for borrowers with no credit or bad credit
If you have no credit or bad credit, a Self credit-builder loan might be worthwhile. Instead of receiving the loan amount within a few days, it’ll be kept in a certificate of deposit with one of Self’s partner banks.
Then, you’ll choose between four different monthly payment options: $25, $35, $48, or $150. And you’ll have 24 months to pay off your loan. After you repay it in full, you’ll get your money minus interest and any fees. Self reports payment history to all three credit bureaus so you’ll be able to build or improve your credit at the same time.
Pros
- 4 monthly payment options
- Higher loan amounts than other credit-builder loans
- Reports payment history to all three credit bureaus
- No hard credit checks
Cons
- High APRs
- Multiple fees
- Must make all payments before you get the funds
What makes Self credit-builder personal loans stand out?
Can help build credit
At least once a month, Self reports on-time payments to the three major credit bureaus: Equifax, Experian, and TransUnion. If you make your payments on time and in full, you’ll build or improve your credit. This loan is a good option if you have no credit or bad credit.
Flexible repayment options
Once you take out a Self credit-builder loan, you can choose from four different monthly repayment options: $25, $35, $48, or $150. But there’s only one term available, so you’ll need to pay off your loan in 24 months.
High loan amounts
If you want to cover a larger future expense and build your credit, a Self credit-builder loan could meet your needs. Other credit-builder loans cap out at $1,000 or $2,000, but Self’s loan goes up to $3,600.
What are the downsides of Self credit-builder personal loans?
High APRs and fees
Self’s APRs are high compared to what some other personal loan lenders charge. Plus, you may owe fees like late fees, early withdrawal fees, and return payment fees on top of interest. These fees can reduce the amount of money you get after you pay off the loan.
Must wait for the funds
Unlike a traditional personal loan, Self doesn’t deposit your funds shortly after you get approved. Instead, it’ll hold them in a CD. And you’ll have to wait until you pay off your loan to collect the money. This can be an issue if you have an emergency expense and can’t wait 24 months for cash.
How to qualify for a Self credit-builder personal loan
If you want to get a Self credit-builder loan, you can create an account and apply online. You must be at least 18 and a permanent U.S. resident or citizen with a U.S. address or have an H1, L1, or Student Visa with a Social Security number. Self also asks for a bank account, debit card, or prepaid card.
Not sure if a Self credit-builder loan is right for you? Consider these alternatives.
- MoneyLion: Like Self, MoneyLion is a credit-builder loan, but it has a lower APR. The downside is you’ll have to pay a monthly membership fee.
- Earnin: You can use Earnin to access your paycheck early.
FAQs about Self credit-builder
A credit-builder loan lets you build your credit and get cash at the same time. You’ll get your loan funds after you pay off your loan and the lender will report timely payments to the credit bureaus.
A Self credit-builder loan lets you build your credit by making payments toward a set amount that you’ve “borrowed” that the lender holds in a CD. Self reports your payments to the credit bureaus and gives you the money once you’ve repaid the loan in 24 months.
Self can be a smart way to build credit as it reports on-time payments to the three major consumer credit bureaus. It offers four different monthly payment plans ($25, $35, $48, or $150), so just make sure you choose one that works well for your budget.
Our methodology: How Credit Karma rates personal loans
Credit Karma’s editors evaluate personal loans by reviewing key features and how they compare to other popular lenders. Those features fall into the following three categories:
- Affordability — We start by checking if a lender’s rates are competitive: Are they higher than average, or are they lower than many competitors? Then, we analyze if fees — particularly origination fees — may make your loan more costly. Last, we’ll check if the lender offers rate discounts for things like automatic payments that may reduce your rate.
- Customer-friendly features — Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, does a lender offer a wide range of loan amounts for people with different borrowing needs? Does it offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can it fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency — We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.