At a certain point, virtually everyone gets tired of living a hand-to-mouth existence. If you want to build something bigger for yourself, like amassing property or establishing a financial future, it all starts with your credit.
And your credit boils down to your credit score, which is how you get approved for a credit card, a mortgage, or a personal loan, as well as the interest rates you'll ultimately pay on those loans.
Unfortunately for many, this interest in credit and its power often comes after some financial damage has already been done. And possibly the easiest way to put a real dent in your credit score is alarmingly one of the simplest — just by not paying bills on time.
In fact, the payment history a user stacks up on all of their credit cards and loans make up 35 percent of their final credit score, the single largest factor in play.
Thankfully, making those payments and building one's credit is firmly within everyone's power. And as it turns out, there are services ready to help give the credit-concerned a boost toward that stable future. Services like Self.
Founded in 2017, Self launched a first-of-its-kind approach to credit building, helping users take control of their credit by building it up at the same time that they're building their own long-term personal savings.
Instead of making regular monthly payments to pay down debt on money you've already spent, Self makes it easy for you to notch regular monthly payments on your credit history.
Users start by going to the Self website or mobile app and applying for a Credit Builder Account, usually for a total between $500 and $2,000*. They determine the term of the loan as well as what they can afford to pay each month, then Self transfers that money into a locked Certificate of Deposit.
Then, users start paying back that loan in monthly installments as low as $25 a month. With each monthly payment over the term of the load, which is usually either 12 or 24 months*, that payment is being reported to all three major credit bureaus, notching a steady regular payment history that works to positively impact your overall credit.
At the end of the loan term, with all payments made, the user gets access to the funds in the Certificate of Deposit, minus any interest and admin fees. For example, if you paid $25 a month over 24 months, you'd finish that term with a lump sum of $520 ready to go toward anything you want, all while giving their credit history a much-needed shot in the arm.
Unlike more plodding traditional repayments on 10-year student loans or a 15- or 30-year mortgage, these Self payments can result in a positive outcome that credit lenders like to see when deciding whether to boost your current credit.
Self gives users a smart path to building credit themselves by heading over to the Self website or mobile app and getting started on a Credit Builder Account application.
This is a sponsored post by Self where we may receive affiliate commission.
*Sample products: A loan with a $25 monthly payment, 24 month term with a $9 admin fee at a 15.92% Annual Percentage Rate with a finance charge of $89; A loan with a $35 monthly payment, 24 month term with a $9 admin fee at a 15.97% Annual Percentage Rate with a finance charge of $125; A loan with a $48 monthly payment, 12 month term with a $9 admin fee at a 15.65% Annual Percentage Rate with a finance charge of $46; A loan with a $150 monthly payment, 12 month term with a $9 admin fee at a 15.91% Annual Percentage Rate with a finance charge of $146. Please refer to www.Self.inc/pricing for the most recent pricing options.
All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to ID verification and consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Bank, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC. The Self Visa Credit Card is issued by Lead Bank, Member FDIC, Equal Housing Lender.