Welcome to a journey toward financial empowerment! In this guide, we’ll explore the Self – Credit Builder Account + Secured Visa Credit Card combo, a dynamic duo designed to help you build credit and achieve your financial goals.
Quick Overview
Rewards: No rewards program available
Annual Fee: $25 annual fee
Introductory Offer: No introductory offer provided
Regular APR: Variable APR of 26.99%
Recommended Credit: Suitable for individuals with no credit history
Credit-building Features:
- No deposit required
- Enhances your credit mix through a loan and credit card combination
- No hard inquiry on your credit report
- Reports your credit activity to all three major credit bureaus
Assessment of Credit-building Features: Considered favorable
The Self – Credit Builder Account with Secured Visa® Credit Card is a unique financial tool that combines a credit-building loan with a secured credit card. It offers a pathway to enhance your credit mix and build credit more efficiently. However, it’s important to consider the associated costs and whether it aligns with your financial goals.
Now, let’s dive into the details!
Introduction
We all aspire to financial stability and independence, and a strong credit score is an essential stepping stone. The Self – Credit Builder Account with Secured Visa® Credit Card offers a unique approach to achieving this. Let’s embark on a journey to unlock your financial potential!
Understanding the Self – Credit Builder Account
What is the Self Credit Builder Account?
The Self Credit Builder Account operates as a credit-builder loan secured by a certificate of deposit (CD). It serves as the foundation for obtaining the Self Secured Visa Credit Card.
Eligibility and Requirements
To become eligible for the Self Secured Visa, you must begin with a Credit Builder Account. This involves selecting a payment plan, paying an upfront administration fee, and making fixed monthly payments over 24 months. After three on-time payments totaling at least $100, you become eligible for the Self Secured Visa.
The Self Credit Builder Account Process
It’s important to note that the Self Credit Builder Account doesn’t provide instant approval. It’s an excellent option for those unable to provide the upfront deposit required for a traditional secured credit card. However, it may not be the most efficient choice for everyone.
Exploring the Self Secured Visa Credit Card
How Does the Self Secured Visa Work?
Once eligible, you can choose the amount from your savings to serve as the security deposit and starting credit limit for the Self Secured Visa. After ordering the card, it functions like any other secured credit card, helping you build your credit history.
Benefits of the Self Secured Visa
The Self Secured Visa offers several advantages, including no additional security deposit or hard credit inquiry. It reports your loan and card payments to all three major credit bureaus, improving your credit mix. Additionally, it provides basic Visa credit card benefits.
Why Choose the Self – Credit Builder Account with Secured Visa® Credit Card
Enhancing Your Credit Mix
The Self card and account combo can enhance your credit mix, a factor that influences your credit score. A diversified credit profile can help you build credit faster, demonstrating responsible financial behavior.
No Security Deposit Required
Unlike traditional secured cards, the Self Secured Visa doesn’t require a separate security deposit. The funds for the deposit come from your Credit Builder Account, streamlining your financial commitments.
Considerations and Alternatives
Annual Fees and Costs
It’s important to note that the Self Secured Visa comes with a $25 annual fee, in addition to the initial administration fee for the Credit Builder Account. While these costs are relatively low, they may not suit everyone’s budget.
Finance Charges
The Self Secured Visa is associated with finance charges on your Credit Builder Account. These charges can vary but can add to the overall cost of this credit-building method.
Simplicity vs. Complexity
Compared to traditional secured cards, the Self Secured Visa may be more complex due to its combination of a credit-building loan and a credit card. Managing both accounts simultaneously may require more effort.
READ ALSO: Zolve Azpire Credit Builder Card Review: Building Credit with a Debit Card
Comparing the Self – Credit Builder Account with Secured Visa Credit Card to Other Secured Cards
When it comes to building your credit, you have options, and the Self – Credit Builder Account with Secured Visa® Credit Card is one of them. However, while it may help boost your credit score, this credit-builder loan and secured card combo can introduce some complexity into the credit-building process, along with extra costs and restrictions. Let’s take a closer look at how it stacks up against other secured cards.
Self – Credit Builder Account with Secured Visa® Credit Card
- Finance Devil Score: Rating: 3.1 stars out of 5
- Annual fee: $25
- Intro offer: N/A
- Rewards rate: N/A
- Recommended Credit Score: No Credit History
Discover it® Secured Credit Card
- Finance Devil Score: Rating: 5 stars out of 5
- Annual fee: $0
- Intro offer: Cashback Match™
- Rewards rate: 1% – 2%
- Recommended Credit Score: No Credit History
Capital One Platinum Secured Credit Card
- Finance Devil Score: Rating: 4.1 stars out of 5
- Annual fee: $0
- Intro offer: N/A
- Rewards rate: N/A
- Recommended Credit Score: No Credit History
Self – Credit Builder Account with Secured Visa® Credit Card vs. Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a popular choice among secured cards. It not only helps individuals build or rebuild their credit but also offers rewards and benefits that you typically don’t find with other secured cards. For instance, cardholders earn 2 percent cash back at gas stations and restaurants (up to $1,000 in combined purchases per quarter, then 1 percent) and 1 percent back on all other purchases. Moreover, Discover matches all the cash back earned at the end of your first year, providing you with a substantial bonus.
While the Discover it® Secured Credit Card does require an initial security deposit (starting at $200), which may be a hurdle for some, its cashback rewards and generous welcome offer make it a more rewarding choice compared to the Self-Credit Builder account and Secured Visa card.
Self – Credit Builder Account with Secured Visa® Credit Card vs. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is an appealing option for those with limited funds for a security deposit. With an initial deposit requirement as low as $49, you can access a credit limit of up to $200. Although the upfront cost is higher than Self’s $25 annual fee, it could be more cost-effective in the long run. With cards like the Capital One Platinum Secured Credit Card, you may have the opportunity to upgrade to an unsecured credit card through periodic account reviews, provided you demonstrate responsible credit behavior.
Who is the Self – Credit Builder Account with Secured Visa Credit Card Right For?
While the Self – Credit Builder Account with Secured Visa may not be the best choice for everyone, it could be the right card for you if you fall into one of these categories:
Credit Card Neophytes: If you have no credit history and want to expedite the credit-building process by diversifying your credit mix, this card might be ideal. Self offers the opportunity to open a credit card shortly after establishing its credit-builder account, streamlining the process.
Determined Savers: Since Self requires a credit-builder account to access the secured credit card, it’s suitable for individuals who need extra motivation to save money. Despite the interest charges, you could end the credit-builder loan term with a substantial savings balance, depending on the plan you choose.
Finance Devil’s Take — Is the Self – Credit Builder Account with Secured Visa Credit Card Worth It?
The Self – Credit Builder Account with Secured Visa Credit Card provides an opportunity for individuals with limited or damaged credit to build payment history on two different credit lines: a loan and a credit card. This tool can be advantageous if you want a card without undergoing another hard credit check and aim to diversify your credit mix. However, the added costs and restrictions associated with the credit-builder loan may make traditional secured cards more appealing options.
To Recap
The Self – Credit Builder Account with Secured Visa® Credit Card can be an effective tool for building credit, particularly if you’re looking to diversify your credit mix. However, it’s essential to weigh its benefits and costs against your financial objectives before embarking on this credit-building journey.
FAQs
How long does it take to rebuild my credit with the Self – Credit Builder Visa?
The time required to rebuild your credit depends on your credit habits. If you maintain low credit utilization and make timely payments, you can see an improvement in your credit score in approximately six months to a year.
Which bank is Self connected to?
The Self Credit Builder Visa is connected to multiple banks, but it doesn’t involve a direct partnership like a co-branded card would. Both your loan and credit card will be managed through Self, simplifying the process.
How do you find out if you’re approved for the Self Credit Builder Visa?
To obtain this card, you must first have a Self Credit Builder loan. This loan requires monthly deposits ranging from $25 to $150. Once you accumulate $100 or more in savings, make three on-time payments, and maintain good standing, you become eligible for the credit card.
Is the Self Secured Visa a good option for building credit quickly?
Yes, it can be beneficial for building credit faster due to its impact on your credit mix.
What is the minimum requirement to be eligible for the Self Secured Visa?
You need to make three on-time payments totaling at least $100 in your Credit Builder Account.
Are there any alternatives to the Self – Credit Builder Account with Secured Visa® Credit Card?
Yes, traditional secured credit cards and other credit-building cards are alternatives to consider.
Is the annual fee for the Self Secured Visa worth it?
It depends on your financial goals. While the fee is relatively low, there are other cards with no annual fees.
Can I withdraw the funds from my Credit Builder Account?
No, the funds in your Credit Builder Account are not accessible for withdrawal until your loan term ends.
In other article, Credit Building for Beginners: A Comprehensive Guide
