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Self Credit Card: How It Works And Who It’s For
The Self Credit Card is called a Self secured credit card, designed for people who don’t have a high credit history. It is also for people who are working to bounce back after they’ve had financial issues.
Therefore, if you’re new to credit and need a safe way to build a clean record, this card is your answer. Every payment you make on time is reported to the major credit bureaus, which ultimately helps your credit grow.
In other words, the Self Visa Credit Card makes it possible for you to build credit by keeping the entry requirements low. However, you need to keep in mind that while it’s easy to access, you’ll need to watch the fees. You also need to understand its limited features.
By the end of this article, you’ll be able to understand how it works and how to use it.
Self: The Company and Its Products
You may remember Self as the Self Lender. It is a financial technology company that has just one mission. It is built to help people establish and grow their credit when traditional banks might not agree to this. Over the years, it has expanded by allowing people looking to start building their credit from scratch. It also helps those who are looking to bounce back financially.
One of Self’s most popular products is the Credit Builder Account. It is essentially a small installment loan that acts as a savings plan. Instead of getting the money up front, you simply pay fixed monthly payments. At the end of it, you get to open your savings and have a perfect record of on-time payments.
Self also allows you to add rent and utility reporting. This means bills you pay each month can now work toward strengthening your credit profile.
There’s also the Self Visa Credit Card. Unlike normal credit cards, secured cards require a deposit that sets your credit limit. Because your own money backs the card, lenders face less risk, which is why the approval is easier.
Using the Self Credit Card
To open it, you must put down a refundable security deposit, which also becomes your spending limit. The minimum deposit starts at $100, making it one of the accessible secured cards. If you don’t have a lot of money at the moment, this lower entry point can be good for you.
Another feature that makes this card unique is its approval process. They don’t do a hard credit check when you apply, so your score won’t be affected. It is also good for people who have little or no credit history and want to get started.
In terms of costs, the card is straightforward. There’s no annual fee in the first year. This helps to keep the barrier low, especially if you’re a beginner. After that, you must pay an annual fee of about $25. Like most credit cards, there’s a variable APR on your purchases. This is if you carry a balance, and you must pay it off in full each month to avoid interest charges.
Most importantly, Self monitors and allows the three major credit bureaus to learn about your payment activities. They include Experian, Equifax, and TransUnion. This means that every on-time payment you make is to build your credit history and improve your score over time.
Who Can Apply for the Self Credit Card?
When the Self Credit Card was first launched, the main way to qualify was through the Self Credit Builder Account. To become eligible, you needed to have an active account in good standing and make at least three on-time payments. You also needed to have a savings of about $100 to be eligible to use this service.
Once you meet this requirement, you can use some of that savings as your security deposit for the credit card. This approach helped applicants show consistent and responsible payment behavior.
More recently, it has become slightly different as they shifted towards a direct application option. Customers can apply with a refundable deposit, without using the Credit Builder Account. This change makes the card easier to access, and it’s great for people who want to start quickly.
If you, however, have more questions about how the service works, contact the self credit card customer service.
How the Self Card Works
Typically, here is a breakdown of how it works:
Apply without hurting your score: Simply go to your Self credit card login to apply online.
Fund your deposit: To open the account, you’ll need to put down a refundable security deposit. The minimum is $100, though you can choose more if you want a higher starting limit.
Activate and start using: When your card arrives, activate it, and you can use it wherever Visa is accepted in the U.S. This is because you cannot use the Self visa credit card when outside the country.
Spend and pay in full: The best way you can use this card is to first make small purchases. Then, try to pay them off with the full amount each month. This is to avoid interest charges, and it proves to lenders that you manage credit well.
Grow your limit over time: After a period of using it, you may then qualify for an increase in your credit line.
Closing and refunds: You can decide to close the card, but your account should be in good standing. Then, you will get a refund of your security deposit. Self doesn’t offer an unsecured card directly. So, once your credit improves, you'll need to apply for one elsewhere.
Who Is the Self Card Best For?
When building or rebuilding credit, the Self card is usually not for everyone. It is, however, useful for:
First-time credit users who have never had a credit card before
Thin-file consumers who have limited or non-existent credit history
Individuals who are trying to rebuild their credit.
It is not the best fit if you’re:
Looking for rewards or cash back. This card doesn’t offer them.
If you travel very often, it can’t be used internationally.
Someone who already qualifies for a secured card with no fee.
The Self Secured Credit Card vs. Other Options
The Self Secured Credit Card has recently become more like a traditional secured card. However, it is still different because it has a security deposit that is lower than average. That makes it good for you if you don’t have a lot of money. However, when you compare the Self card with other options, you’ll find out that you have various choices.
The first is the Chime Credit Builder Secured Visa. You could use this instead if you prefer pairing your credit building with a savings account. Unlike Self, Chime requires you to open a checking account and set up direct deposit, allowing you to get started. From there, you have to transfer money into your Credit Builder account.
The funds you transfer are like a prepaid balance to cover your purchases. The good thing is there’s no annual fee and no interest charges. However, Chime’s system can be restrictive if you don’t plan to route your paycheck through them.
Another option is other secured cards that have rewards programs. This feature is really good and only applies if you’re eligible. For example, some credit unions provide secured cards with cash back. It is a good option if you want to earn a little extra while working on your credit. The catch is just that these cards mostly have stricter membership requirements.
Therefore, a Self card can be your preferred option if you want a secured card with a low barrier to entry.
Bottom Line
The Secured Self Visa Credit Card is a great option if you’re looking to build or rebuild your credit. Unlike most secured cards, you don’t need a credit check. So, approval is guaranteed once you make the minimum deposit. Also, because it is a Visa card, you can use it anywhere. It can be for your everyday purchases, whether you’re shopping online or in stores. Therefore, using a Self credit card is worth it.
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