Self Financial: Clearing the Confusion on Their Credit Builder Account and Secured Card

If you’re looking to build credit with a very low score, you have likely come across Self Financial. They offer a unique approach that has helped thousands of people, but their product structure can be confusing. Is it a loan? Is it a credit card? Do you pay upfront?

We’re going to answer the exact questions we had and clear up the confusion surrounding the Self - Credit Builder Account + Secured Self Visa^® Credit Card.

1. What is the Self Credit Builder Account? (The Installment Loan)

The core Self product is not a credit card; it is a credit builder account, which is classified as an installment loan on your credit report.

How It Works (A Reverse Loan)

You do not receive a lump sum of money upfront. Instead, you choose a plan (the most common is paying $25 a month for 24 months). The total amount of the "loan" ($600) is placed into a secure Certificate of Deposit (CD) account in your name.

You pay $25 every month.

The Benefit: Each of those on-time monthly payments is reported to all three major credit bureaus (Experian, Equifax, TransUnion). This is the main service you are paying for, as payment history is the most important factor in your credit score (35%).

The Cost: You pay a small one-time administrative fee (around $9 to $12) and a small amount of interest on the loan you are repaying.

Do I Get the CD Interest?

No. The money is in a CD that earns a very minimal amount of interest (less than 1%), but that interest typically goes to the issuing banks (Lead Bank, Sunrise Banks, N.A., or First Century Bank, N.A.) to cover the cost of the service.

What Do I Get Back?

At the end of the 24-month term, after all your payments are made, you get the majority of your money back (minus the fees and interest you paid over the term). On a $600 loan, you'd get back around $520.

The primary value here is the 24 months of positive payment history on your credit report, not making money on an investment.

2. What is The Secured Self Visa^® Credit Card? (The Revolving Card)

This is a separate, but related, product. The Secured Self Visa^® Credit Card is a traditional secured credit card, which is classified as a revolving account on your credit report.

How It Works (Using Your Savings as a Deposit)

You don't apply for this card with upfront cash. Instead, you use the money you've saved up in your Credit Builder Account as the security deposit.

There is no hard credit check required to get this card once you are eligible.

How to Become Eligible for the Card

You must meet specific criteria before the Self app will let you apply for the secured card:

3 On-Time Payments: You need to have made at least three consecutive monthly payments on your Credit Builder Account on time.

$100 Savings Progress: You must have at least $100 saved up in your account (which happens after a few months of $25 payments).

Account in Good Standing: You must not have any missed payments or other issues.

Provide Income Info: You need to provide your income and expense details.

Once eligible, you use $100 from your savings progress as the deposit for the card. Your initial credit limit is usually $100.

3. Summary of Differences and Why It Matters

Using both products allows you to build two different types of credit history simultaneously: an installment loan (the builder account) and a revolving credit card (the secured card). This mix accounts for about 15% of your FICO^® score.

Here is how the two products differ:

Product Type:

• Credit Builder Account: An installment loan with fixed payments.


• Secured Credit Card: A revolving credit card with flexible payments.

Money Upfront?:

• Credit Builder Account: No lump sum cash needed to start the account.


• Secured Credit Card: A deposit is required (but it comes from your builder account savings).

Annual Fee:

• Credit Builder Account: One-time admin fee + interest on the loan.


• Secured Credit Card: $0 the first year, $25 thereafter.

Credit Check?:

• Credit Builder Account: A soft inquiry to open the account.


• Secured Credit Card: No credit check required to order the card (once eligible).

Credit Bureau Reporting:

• Both products report to all three major credit bureaus.

The Self products are designed for people who cannot afford an upfront deposit for a secured card or who have very few options due to a very low credit score. You are paying for the service of having positive activity reported to the credit bureaus to help you rebuild your score effectively.

Found this guide helpful? Bookmark it for future reference as you continue your financial journey!

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