The combination of the Self Credit Builder Account with the Secured Visa Card can be an excellent choice. With Self, you open a Credit Builder Account paired with a Secured Visa card. This combination can give you access to credit while diversifying your credit mix (types of credit accounts), which may speed up improving your credit score without the need for a hard credit inquiry.
- No credit inquiry
- No security deposit
Most Secured Credit Cards require a security deposit, similar to a security deposit when you rent an apartment. The Self card has a new way to accomplish this that also helps enhance credit building.
Here’s How It Works
First, you open a Self Credit Builder Account and make monthly payments into that account starting at $25/month. As this builds up, it takes the place of a security deposit. Then, after you build up to $100 in the credit builder account and make 3 on-time monthly payments, you can get the Self Visa Secured Card.
The Credit Builder Account is set up as a secured installment loan. That way, when you make the payments into the account, Self is reporting to the credit bureaus that you’re paying down a loan account. At the same time, you’re building up the security deposit for the secured credit card. Once you have the card, Self will report to the credit bureaus that you’re maintaining a credit account. Two different account types that work together, as long as you keep the accounts in good standing and make your payments on time.