This Loan can Boost your Credit score 60+ Points
A Credit Builder Loan is an option for consumers with bad credit or those with no established credit.
Self (formerly Self Lender) is the most used credit builder loan service. and was founded in 2014. They are partnered with Sunrise Banks, N.A. and Lead Bank. Both banks have been in business for more than 50 years.
How Self's credit builder loan works?
The Self's credit builder loan is a small installment loan that’s held in a Certificate of Deposit (CD). The account is FDIC insured and is held in your name.
Payment Terms are 12 or 24 months depending on the loan amount. Monthly payments are based on the amount of the loan $525, $545, $1,000, and $1,700. There is also an activation fee that ranges from $9-$15 (See Chart Below for Self's Loan Terms). Once the payment terms are complete the money is released to you.
There is NO CREDIT CHECK for the credit builder loan. They do however review your ChexSystems to determine your eligibility. You must be 18 years or older to apply and must have a bank account/or debit card. Prepaid debit cards are accepted.
Credit Score And Reporting
Self does not report the account to your credit report until 4 months. This is so when the account reports to your credit file you will have already established good payment history, therefore this will have bigger impact on your credit score. According to Self's website they see an a average of a 45 point increase in their customers credit scores, when payments are made on time. Based on our data we show a higher average for Valiant Credit Services customers of 60 or more points.
A credit builder loan is an excellent option for those with no credit or in need of newly established credit. Secured credit cards are another option but require large deposits to open, whereas credit builder loans do not. If you have questions about your credit report and credit score please schedule a FREE consultation with a Senior Credit Consultant today. You can do this by clicking the link BOOK NOW OR CALL 866-373-1377.