Key takeaways
- The Self – Credit Builder Account with Secured Visa® Credit Card is a good tool for building credit when you have bad or no credit history and don’t yet have enough money for a security deposit, but it’s not for everyone.
- Self helps cardholders build credit by giving them a good credit mix — the credit builder account plus the credit card — and encouraging responsible credit building habits.
- Those that can afford to put down a security deposit for a more traditional secured credit card, however, will likely find less value in the Self Secured Visa Credit Card, especially since it charges an annual fee and offers no rewards.
If you need to build credit but you can’t seem to get approved for a traditional credit card, the Self – Credit Builder Account with Secured Visa® Credit Card could be the answer you’re looking for. Thissecured credit card is easy to get approved for, provided you’re willing to make payments to a savings account in your name. After you build up at least $100 or more in savings, you can allocate some of your funds toward your new credit limit and begin using this secured card to build credit for the future.
To qualify for the Self Secured Visa Credit Card, you’ll need to open a Credit Builder Account with a company calledSelf first. You also have to make at least three months of on-time payments toward your dedicated savings account with at least $100 or more in progress made so far.
With all these details in mind, it’s easy to wind up asking yourself an important question: Is the Self Secured Visa Credit Card worth it? Here are some situations where the card is well worth the effort, as well as scenarios where you may want to consider a different plan for credit-building altogether:
When is the Self – Credit Builder Account with Secured Visa Credit Card worth it?
The Self Secured Visa Credit Card will likely be worth it for you if any of the following scenarios apply:
You want to build credit with no credit check required
The Self Secured Visa Credit Card is different because it doesn’t require acredit check like other credit cards do. Due to this fact, you are virtually guaranteed approval as long as you can meet the requirements for this account, such as making three on-time payments and building up at least $100 in your Credit Builder Account.
Self even reiterates this fact in their FAQs:
“If you meet the eligibility criteria for the Self Visa® Credit Card then no, you will not be declined,” the lender writes.
By using the Self Credit Builder account and the Secured Visa Credit Card responsibly, you’ll likely see your credit score start to rise.
You need time to save up your security deposit
Thebest secured credit cards require you to come up with a minimum security deposit of $200 to $300 to begin building credit, yet the Self Secured Visa Credit Card lets you start saving toward your security deposit before you apply. This makes it ideal for people who need some time to save up their security deposit but want to do so in an organized and strategic way.
You want a Visa credit card for purchases
The Self Secured Visa Credit Card is a realVisa card, so you can use it with millions of retailers and vendors that accept Visa worldwide. This makes the card ideal for in-person shopping as well as online purchases.
When is the Self – Credit Builder Account with Secured Visa Credit Card not worth it?
Here are some situations where a different credit-building product could leave you better off:
You want to pay $0 in fees
The Self Secured Visa Credit Card comes with a $25annual fee that is charged on your first credit card statement and again every 12 months, yet there are plenty of secured credit cards that come with $0 in unavoidable fees.
Also, note that the variable purchase APR on this card is incredibly high at 29.24 percent to 31.99 percent depending on which of Self’s partners issues your card, so it’s a poor choice forcarrying a balance for the long term.
You have the cash saved up for a traditional secured card
If you have $200 or more in savings built up in your own account, you can consider almost any other secured credit card on the market today. After all, the minimum security deposit is just $200 for popular secured cards like theDiscover it® Secured Credit Card. For the Capital One Platinum Secured Credit Card, you might need even less than that, as Capital One will accept security deposits as low as $49 depending on your qualifications.
You want a secured credit card that earns rewards
While the Self Secured Visa Credit Card makes it easy to save up your security deposit with monthly payments, the secured card itself doesn’t offer any rewards. By contrast, several of the top secured cards offer up to 1.5 percent cash back for each dollar you spend, such as the Capital One Quicksilver Secured Cash Rewards Credit Card.
The Self – Credit Builder Account with Secured Visa Credit Card vs. other cards
The Self Secured Visa Credit Card stacks up to other credit cards in a unique way. Cardholders aren’t just getting a secured credit card — they’re getting an account that will help them save money in a very structured way.
A card with a similar structure is the Chime Credit Builder Secured Visa® Credit Card. Chime users must open a Chime Checking Account, then get a qualifying direct deposit of $200 or more sent to that account. After that, users can open a Credit Builder account, where they’ll move in money from their Chime Checking Account to fund their card. Any purchases made with the card will be paid off by the funds you move to the card from your checking account — almost like a prepaid card.
Unlike the Self – Credit Builder Account with Secured Visa Credit Card, the Chime Credit Builder Secured Visa Credit Card doesn’t charge an annual fee. It does, however, have more stringent rules about funding their card. With Self, you can fund your Credit Builder Account with any type of deposit, but with Chime, you need to start off with a direct deposit from “your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit or Original Credit Transaction (OCT),” according to their website.
Keep in mind: The Self – Credit Builder Account with Secured Visa Credit Card might be the better choice for those who want a credit builder account and credit card combination that has a more straightforward structure. But those who don’t want an annual fee might prefer the Chime Credit Builder Secured Visa Credit Card.
Just keep in mind that there are plenty of other credit cards that could help you build credit without needing a credit builder account attached.
Should you get the Self – Credit Builder Account with Secured Visa Credit Card?
For the most part, the Self Secured Visa Credit Card works best for people who want a secured credit card without having to go through a credit check, as well as those who want to save up their security deposit over the span of a few months. This card is also one that will approve you regardless of the past mistakes you have made with credit, even if you have abankruptcy on your credit report.
That said, people who want tobuild credit do have plenty of options, including the chance to get a secured card that earns rewards with no annual fee. With that in mind, you should only get the Self Secured Visa Credit Card if you have taken the time to compare all your available options.
The bottom line
Before you decide on this card, we also suggest reading over ourSelf – Credit Builder Account with Secured Visa Credit Card review.
In the meantime, you should compare othercredit cards for bad credit, as well ascredit cards for no credit history. Once you spend some time looking at offers geared to your credit rating, you’ll be able to make an informed decision.
Issuer-required disclosure statement
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
